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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (16325)	7/15/1999 11:14:00 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 29382

Someone we know?: "Two Firms to Liquidate Their Assets In San Antonio Investment Scandal By CARLOS TEJADA and JOEL MILLMAN Staff Reporters of THE WALL STREET JOURNAL Two entities at the center of a widening San Antonio investment debacle have filed to liquidate their assets, leaving customers wondering what happened to $475 million in investments. In the most detailed information to date, a director of IWG Services Ltd. said in a filing with the London Chancery Court that the investment-management firm had about 1,000 investor accounts. The firms are liquidating, he said, because they can't meet investor demands to cash out. London-based IWG and I.G. Services Ltd., based in the Cayman Islands, invested funds from Mexican and other Latin American investors. These investors signed up through InverWorld Inc., a San Antonio firm that provided data processing, trade execution and client support to IWG. Numerous Mexican investors have said in recent weeks that they haven't been able to get back their investments from InverWorld. In a separate action in the U.S., PricewaterhouseCoopers LLP asked a U.S. bankruptcy court in San Antonio to stay all legal proceedings affecting IWG and I.G. while the foreign process goes forward. PricewaterhouseCoopers last week was hired to liquidate IWG and I.G. Services. In the London filing, IWG director Mark Francis Novak said the client investments include about $250 million in IWG short-term notes and about $225 million that was invested in equities and bonds. He said that InverWorld told clients in late June that IWG had suffered several setbacks and trading losses related to emerging markets and currency devaluations, and that it wouldn't be able to permit withdrawals. He wasn't more specific; nor did he estimate IWG's assets. He said only that its only liquid asset is a cash account of as much as $250,000. Reached by phone in the Cayman Islands, Mr. Novak declined to comment and referred calls to PricewaterhouseCoopers. "We're in the early stage of this matter. It's premature to talk about where we are," said J. Robert Medlin, a partner with PricewaterhouseCoopers in Dallas. Some investors have been making attempts to get their money back. David Cibrian, a San Antonio lawyer, said one of his clients couldn't access $1 million in Treasury notes. InverWorld and its lawyers didn't return calls. On Tuesday, a group of investors from Brownsville, Texas, who say they invested $7.1 million in securities held by IWG, filed a petition with the U.S. Bankruptcy Court in San Antonio to force IWG into involuntary-bankruptcy proceedings."