To: philv who wrote (7135 ) 10/31/2000 2:03:25 PM From: long-gone Respond to of 116764 Monday October 16, 6:08 pm Eastern Time First trial in Bre-X mining fraud gets under way By Scott Anderson TORONTO, Oct 16 (Reuters) - The first trial in the infamous Bre-X Minerals gold mining fraud, which wiped out billions of dollars in wealth, got under way on Monday with a lawyer for former Bre-X vice-chairman John Felderhoff saying his client shouldn't have to take all the blame for many others involved. Bre-X, the darling of the Canadian stock market in the mid-1990s, rocked the Canadian investment community when it was discovered in 1997 that its gold property in Indonesia, touted as a veritable El Dorado by the company and mining analysts alike, in fact contained no gold. The debacle had such an impact that it forced the Toronto Stock Exchange, Canada's biggest, and Canadian regulators to tighten rules and procedures. Stock of Bre-X, which at the height of its brief life had a market capitalisation of more than C$6 billion ($4 billion), became valuable only as a bitter souvenir after it was found that the Busang gold deposit, hailed as the world's biggest, was a fake. Felderhof is on trial on four counts of insider trading and four counts issuing false press releases. He was not in attendance at the trial on Monday. He now lives in Cayman Islands, which has no extradition treaty with Canada. If Felderhof is proven guilty, he could face two years in jail for each count as well as a fine worth three times the amount of his alleged gains from illegal trading. The Ontario Securities Commission, Canada's key investments regulator, alleges Felderhof sold almost C$84 million worth of shares in the company in 1996, knowing the Indonesian government was challenging the ownership of the property, deep in the jungles of Borneo. Felderhof's lawyer, Joseph Groia, accused the securities commission of ``seeking to pounce on the most convenient victim,'' when, instead, the blame should be placed on the company. ``It is my submission that the deck has been stacked by the OSC against Mr. Felderhof,'' Groia told the court in his opening remarks. Groia argued that Felderhof has been given the onerous task of defending and answering for the actions of the company, which at its height had six members on its board of directors. ``You're putting the task on him so high, he'll never be able to roll the boulder up over the mountain,'' Groia argued in front of Ontario Court Judge Peter Hryn. The trial, which began on Monday and is expected to be heard daily until Christmas, sees both Groia and the OSC prepared to present hundreds of thousands of pages of evidence contained in more than 151 binders surrounding the court room in downtown Toronto. More than 50 witnesses are expected to be called including Barrick Gold Corp.'s (Toronto:ABX.TO - news) chairman, Peter Munk, and Placer Dome Inc.'s (Toronto:PDG.TO - news) former president, John Willson. Groia would not say whether Felderhof would come to Toronto to testify. ``You'll just have to wait and see,'' Groia repeatedly told reporters. ($1 equals $1.52 Canadian) biz.yahoo.com