Mongolia Gold Resources Ltd MGR
Shares issued 24,718,685 1999-04-12 close $0.09
Monday Apr 12 1999
See Breckenridge Resources Ltd (BKD) Street Wire
by Brent Mudry
Controversial chartered accountant Steven Scott Brown, six related offshore holding companies and several associates face a $2.25-million (U.S.) enforcement action targeting their assets in Vancouver and elsewhere in the province. In a petition filed March 31 in the Supreme Court of British Columbia, Prism Capital of the Turks and Caicos Islands and Florida businessman Rafael Feria seek to enforce a consent judgement obtained in early December in Ontario. Mr. Brown, a Toronto accountant who also practiced in Vancouver, is accused of potential fraud by police in the Turks and Caicos Islands. The offshore financier was "extraordinarily suspended" by the Institute of Chartered Accountants of B.C. in December after Vancouver media reports on his controversial dealings. Using fronts and holding companies, Mr. Brown invested in a number of Vancouver Stock Exchange-listed companies.
In the B.C. filing, Vancouver lawyer Ian Mackie of Guild Yule notes that Mr. Feria, based in Miramar, and Prism filed suit for breach of trust and breach of fiduciary duty on Nov. 23, 1998, in Ontario Court of Justice (General Division) and won a speedy consent judgment 11 days later, on Dec. 3, for $2.25-million (U.S.), costs of $50,000 and pre-judgment and post-judgment interest. The named defendants are Mr. Brown, his wife Marya Margaret Brown, his Toronto accounting firm Brown & Co. and six holding companies: Private Capital Management, Apex Financial, also known as Apex Financial Management, Secretarial Services, Directors Nominees, Enigma Enterprises and Chancellor Securities. All six companies operate from post office box 99, Caribbean Place, Leeward Highway in Providenciales, the same address used as three of Mr. Brown's other companies: Mercur Capital, Tintex Holdings and FCB Capital, which are not named in Mr. Feria's suit.
The other named defendants include associates Jacqueline Horning, Gary Hull, Christina Hull, Marie Mercado and Ralph King, and 1187012 Ontario, operating as The Real Beverage. Ms. Mercado and Mr. King are described as trustees of Future Control Trust, along with Mr. Brown. The B.C. petition notes that Mr. Brown, his wife and his holding companies were duly served in the Ontario lawsuit and either appeared or were defended at the proceeding. Vancouver lawyer Mr. Mackie notes that no appeal is pending from the consent judgment, and the appeal period has expired. The lawyer declines to offer any comment on his Vancouver petition, citing strict instructions from his clients.
Mr. Brown has invested in a number of VSE companies in the past three years, using nominee fronts and holding companies, including Jim Kermeen's Breckenridge Resources, Dal Brynelsen's Pacific Vangold Mines, Mongolia Gold Resources, Peter Tsaparas's Odessa Petroleum, World Organics and Lucky Janda's Desert Sun Mining. The biggest Vancouver holding may be a three-million share stake in Odessa. Odessa's predecessor, International Glendale Resources, bought Ukrainian oil and gas exploration interests from Tintex Holdings in late 1996 for the shares and $130,000. Regulatory filings indicate Tintex, which uses Mr. Brown's Providenciales post office box, is 50 per cent beneficially owned each by Vonice Parker, one of his employee-fronts, and a Viktor Dmitriyev. Mr. Tsaparas, a Vancouver stock promoter, denies that Odessa has ever had any discussions, dealings or involvement with Mr. Brown.
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