A Canadian company described as "a disaster waiting to happen" has incorporated a subsidiary in Bermuda to promote the firm's interests overseas.International Hi-Tech Industries Inc, which is listed on the notorious Vancouver Stock Exchange, has a net worth of CDN$4 million.But the company's market capitalization — the value placed on it by investors in the marketplace — stands at a staggering CDN$335 million even though Hi-Tech reportedly has no sales revenue and no contracts for any sales.
Despite the strong criticisms of the collapse of Bermuda Fire & Marine Insurance, the company's vice-chairman, lawyer and former UBP MP William Cox, yesterday maintained his year-long public silence on the affair."I have no comment," said Mr Cox, who is the senior partner in law firm Cox & Wilkinson.Bermuda Fire's chairman, former government Senate leader Charles Collis, the senior partner in law firm Conyers, Dill & Pearman, was not available for comment.Other directors who voted to approve the controversial split-up of the company in 1991 have steadfastly refused to comment publicly on their actions since Bermuda Fire went into provisional liquidation in November, 1993.
A powerful political body in the US has launched a blistering attack on Bermuda over its handling of the collapse of Bermuda Fire & Marine Insurance.Over $40 million in assets that were dividended out to the insurer's shareholders in 1991 has been described as "a prime example of outrageous irresponsibility by an offshore insurance company".The matter was "exacerbated by a cavalier disregard for the consequences on people living elsewhere", said a report released this week entitled ‘Wishful Thinking: A World view of Insurance Solvency Regulation.'
Indictment in USA v. Kim Schmitz, a.k.a. "Kimble"; Ivy James Lay, a.k.a. "Knight Shadow"; Claude Oliver Bilak, a.k.a. "Killer"; Joshua Neil Freifield, a.k.a. "Legend"; Michelle Lillian Goodzuk, a.k.a. "Killerette"; Enoch John White, a.k.a. "Sonny", a.k.a. "Phone Stud"; Ted Anthony Lemmy, a.k.a. "Speed Master"; Leroy James Anderson, a.k.a. "Major Theft"; and Frank Ronald Stanton, Jr., a.k.a. "Mystery", at the U. S. District Court for the Middle District of North Carolina.
The Bank of Butterfield has been caught up in a stock scandal that has hit some of Wall Street's best-known brokerage houses.One of the bank's clients - American Michael Morse - has been accused of ripping off brokers through a scam involving the technique of ‘short selling'.Butterfield was named as a defendant in a court action brought at Bermuda Supreme Court this week by giant US investment firm, Merrill Lynch.
European investigators looking into the Bank of Credit & Commerce International scandal have turned their attentions to Bermuda.They are trying to locate the assets of Sheikh Khalid bin Mahfouz, who has business interests on the island.
Reinsurer North American Fidelity & Guarantee, which is being sued for $4 million in Bermuda, moved its operations from Bermuda to Belgium in 1993 not long after failing to comply with a request to show proof of its capital, we have been told.And some insurance observers believe the company, which offered property, marine, aviation and mortgage guarantee coverage and claimed to have capital of $100 million, may have actually had very few funds available to meet claims during the year it operated in Bermuda.
Ernst & Young, the provisional liquidators of Bermuda Fire & Marine Insurance Company, are to ask Bermuda Supreme Court to give them another six months to try to sort out the mess, taking them up to January, 1995.
The joint provisional liquidators of Bermuda Fire & Marine Insurance have brought their first legal action in Bermuda since they were appointed six months ago, filing an application to be appointed receivers of Bermuda London Underwriting Agency Ltd.
Reinsurer North American Fidelity & Guarantee is being sued for almost $4 million in Bermuda, where it operated for only about a year before moving to Belgium last October.A lawsuit has been filed against the company by Bermuda-based Raydon Underwriting Management Company, which operated from the same building in Hamilton.
Businessman Thomas Coughlin, who is being investigated by Bermuda police following a complaint that he may have misappropriated funds from a local firm, has broken his public silence since allegations were made against him.But he has refused to shed any light on what has happened to hundreds of thousands of dollars that has allegedly gone missing from a local property development firm that he ran.Mr Coughlin, who has failed to return several calls left by us, last week gave an interview to his local newspaper in Connecticut, the Middletown Press.
The trial of Bermuda company boss Tony Habib, which was originally due to have been held on March 21, has been postponed because of additional time required by US investigators to gather information locally.
The Department of Trade & Industry's warning to UK insurers about taking out reinsurance in Bermuda is a direct result of the collapse of Bermuda Fire & Marine, Lloyd's List newspaper has reported.
A trial date for Bermuda company boss Tony Habib, who is accused of a multi-million dollar fraud, has been set for March 21 in the Federal Court southern district of New York.
An application has been made to wind up Bermuda-based Windsor Investments, which is majority owned by beleaguered American businessmen Gilbert Beinhocker and Gregory Plunkett.Channel Islands-based Maydown Consultants, which filed the winding-up petition at Bermuda Supreme Court on Wednesday, claims the investment company owes it $375,000.
Bermuda-based investors fighting to regain $750,000 which was allegedly stripped from their firm by American Gilbert Beinhocker may get most of their money back.The receiver of their investment firm, EPA Inc, has ordered the return of $500,000 in Promissory Notes that were taken out of the firm by Dr Beinhocker.Dr Beinhocker, who ran EPA for its investors, gave two notes - worth a total of $207,692 - to law firms Hale & Dorr, of Boston, and Richards, Layton & Finger, of Delaware, as payment for legal bills.
The saying ‘there's one born every minute' has never been more appropriate than when applied to the plethora of investors who have lost their shirts gambling on companies that prospect for diamonds and gold in ‘them thar hills' of British Columbia, Canada. DAVID MARCHANT takes a look at an industry that has attracted substantial investment from Bermuda residents and scrutinizes the performance of the notorious Vancouver Stock Exchange, which helps firms raise money and which was described in Forbes magazine in 1989 as ‘The Scam Capital of the World'.
Ernst & Young, the provisional liquidators of Bermuda Fire & Marine Insurance, have been granted an extra three months by Bermuda Supreme Court to compile information about the company's financial health and are now expected to produce their findings on March 10.
A police file on Arnold Todd and others allegedly involved in a multi-million dollar fraud ring will be sent to the Attorney-General's chambers early next month.But criminal charges are unlikely to be brought for several months, if they are brought at all, Acting Assistant Police Commissioner Superintendent Wayne Perinchief said last night.
Bermuda Fire & Marine chairman Charles Collis said yesterday that the company has between $50 million and $60 million in reserves and was put into liquidation to avoid "a feeding frenzy" by its creditors.
Provisional liquidators have been appointed to investigate the financial position of Bermuda Fire and Marine Insurance Company Ltd after the company filed for a voluntary winding up order on November 2.
Writ of Summons in Premium Sales Corporation, by Harley Tropin, as Receiver, v. Kenneth Thenen, Brenda Thenen, Scott Thenen, Daniel Morris, a.k.a. Daniel Rae; Samuel Schwartz, and Barclays Bank Plc at the Grand Court of the Cayman Islands.
Bermuda Supreme Court Chief Justice Sir James Astwood has refused to strike out a civil action started last summer by the liquidators of Focus Insurance against its former directors and officers.He has ruled that the action contains allegations which, if proved at trial, could show that the directors deliberately disregarded their legal duty to Focus and failed to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
The Ministry of Finance has frozen the activities of a Bermuda-based insurance company after its chief executive and founder was arrested in New York on fraud charges.Alleged trickster Tony Habib, who heads Financial Services Insurance Ltd, is accused of conning auditors and insurance authorities here and in the US into believing that his company had over $50 million in assets. In reality, its finances are said to be "in serious jeopardy".
A Bermuda-based insurance company's president and his wife are thought to have gone into hiding after a Federal court in Dallas last week found them guilty of fraud.Neill and Florence Portermain were also found to have taken money from the company under false pretences and were ordered to pay a Bermudian liquidator $17.6 million in damages and interest.
Focus Insurance Company chairman Mark Hardy is fighting committal proceedings for alleged contempt of court.Focus liquidators David Lines and Peter Mitchell have begun an action to have Mr Hardy jailed or to receive "other punishment as the court may deem fit" for violating injunctions restricting the use of Mr Hardy's personal assets.
Six new defendants who have been added to a suit against the former directors and officers of Bermuda-based Focus Insurance Ltd are not being accused of willful negligence or breach of fiduciary duty - the central allegations in the civil complaint now being brought by Focus' liquidators David Lines and Peter Mitchell.
Complaint filed by Michael Heilman against Roland Bleyer, The Bleyer Clinik Inc., Clinik Zurich, and April Farinola at Superior Court, Orange County, California.
Superseding Indictment in USA v. Kenneth Walton Rijock, Herberto Julian Rodriguez, a.k.a. Tico Rodriguez, a.k.a. Herberto Castellano; Michael Clinton Gruener, a.k.a. Michael Rossi, and Christine Marie Dickinson at the U. S. District Court for the Northern District of Florida.
Criminal Indictment in USA v. Kenneth Walton Rijock, Herberto Julian Rodriguez, Michael Clinton Gruener, and Christine Marie Dickinson at the U. S. District Court for the Northern District of Florida.
Certificate of Vacation of Conviction in the case of 'USA v. Kenneth Bryant' at the U. S. District Court for the Southern District of Florida.
Criminal Indictment in USA v. James G. Bryan, Robert J. (Jack) Bryan, Raul Costales, James R. Curtin, Allan L. Dolan, Lynford R. Evans, Mitchell E. Exctain, Elmer M. Haskins, Wayne M. Haskins, James A. Hearn, Eugene R. Jackson, Julian Malcomson, Richard W. Morris, Michael K. Mulford, Jan T. Shelton, Michael K. Shelton, George Sprague, Judith Thomason (Curtin), Anthony Virtue, Andreas Wiedenfeld, Ronald F. Williams, and John Worley at the U. S. District Court for the Northern District of Texas.
Court Docket in USA v. James G. Bryan, Robert J Jack Bryan, Raul Costales, James R Curtin, Allan L Dolan, Lynford R Evans, Mitchell E Exctain, Elmer Haskins, Wayne Haskins, James A Hearn, Eugene R Jackson, Julian Malcomson, Richard W Morris, Michael K Mulford, Jan T Shelton, Michael K Shelton, George Sprague, Judith Thomason Curtin, Anthony Virtue, Andreas Wiedenfeld, Ronald F Williams, and John Worley at the U. S. District Court for the Northern District of Texas.