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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. -- Ignore unavailable to you. Want to Upgrade?

To: DR. MEADE who wrote (27659)	1/6/1998 12:44:00 AM
From: Serge Collins	Read Replies (1) \| Respond to of 28369

FP runs an interesting article about Felderhof in today's edition. In the article by Sandra Rubin, a Cayman Islands official is quoted as saying that "the Cayman Islands wouldn't harbour criminals." He goes on to say, "I can assure you that once the situation has reached a point where charges are laid, you will see the Cayman Islands react." I hope that is more than posturing. Of course the Caymans are a choice destination for thousands of tourists and a potential boycott of the islands, failing their co-operation, cannot be ruled out. I would prefer a letter writing campaign to island officials to persuade them to throw the bum out as soon as possible. He refuses to co-operate with investigators and allow himself to be interviewed, which in my eyes is a breach of justice.

To: DR. MEADE who wrote (27659)	1/6/1998 12:34:00 PM
From: alan holman	Read Replies (2) \| Respond to of 28369

Tuesday, January 6, 1998 New Felderhof charges called fishing expedition By SANDRA RUBIN The Financial Post The legal noose has tightened another notch around former Bre-X Minerals Ltd. chief geologist John Felderhof, whose wife and a Cayman Islands company they are believed to control now face a new class action lawsuit. The latest move is a bid to ensure Felderhof cannot shelter any of the $71 million he made trading Bre-X shares by transferring it to his wife's, or her company's, name. The suit, filed in Ontario Court, general division, on Dec. 23, alleges that "at all material times Ingrid Felderhof was acting as [John] Felderhof's agent." It also charges that Spartacus Corp., a company registered in the Cayman Islands, is controlled by Ingrid Felderhof, John Felderhof or both, and also acted as his agent "in receiving the proceeds of the sale of Bre-X shares." "We've cast our net wider," said Harvey Strosberg, a Windsor, Ont., lawyer who has filed a class action suit against Bre-X and its directors in Ontario. "If the court concludes that Mr. Felderhof improperly received money and passed it on to his wife, this means that his wife will be called to account just as he would be. The same for her company. "It's called tracing. We intend to chase the money wherever it goes." Joseph Groia, Felderhof's Canadian lawyer, said he had not yet seen the suit, but "I agree with Mr. Strosberg's sentiment that he's fishing." The statement of claim on file with the court says at least US$5 million was deposited in a US$ account in Spartacus's name and two Cayman accounts in Ingrid Felderhof's name. The couple have been holed up in their US$3-million Cayman Islands home since news of the fraud broke in mid-March. Felderhof has twice proclaimed his innocence in written statements and insists he still believes there is gold in Busang. He has declined all interviews. The couple had their personal assets in the Cayman Islands frozen last month in an order by bankruptcy trustee Deloitte & Touche Inc., which is charging negligence and breach of fiduciary duty. The Felderhofs have short-term residency, the first step in applying for permanent resident status. It must be renewed every six months. The government is keenly aware of the potential embarrassment as lawsuits against the pair continue to mount, but it's tough for the tiny country to withdraw their initial residency unless criminal charges are laid or they come before a board seeking permanent status. "The Cayman Islands wouldn't harbor criminals," said a source who spoke on condition of anonymity. "We wouldn't want to tarnish our image here. "I can assure you that once the situation has reached a point where charges are laid, you will see the Cayman Islands react." The fact the Felderhofs' assets have been frozen could disqualify them from permanent residency, because one of the requirements is applicants must have sufficient funds to ensure they don't need to work. They must also provide a police clearance certificate from their home country and three character witnesses.