USA

Due to a loss of clients and reputation amid a slew of widely-publicized fraud allegations, offshore broker Lines Overseas Management claims to be scaling back its activity in U. S. penny stocks. Effective June 30, 2005, LOM Holdings Limited says the group will "dramatically curtail client activity in the US bulletin board and pink sheet over the counter market".

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Hungary into Gheorgina Gruina for allegedly using counterfeit US bank cards.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Belgium into Rafael Contreras for assault and attempted theft.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Mexico into Maria Leonor Parres Murillo, a.k.a. Maria Leonor Parres de Burillo, for alleged fraud.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in the Czech Republic into Dalibor Kopp and Josef Ondrouch who are believed to have violated Czech laws concerning foreign trade in military materials.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Ukraine into alleged tax fraud involving Lugansk Power Affiliation.

Offshore investment firm Lines Overseas Management, which is headquartered in Bermuda and has offices in Cayman, the Bahamas and England, claims to have spent US$2.75 million over the last two years on legal fees concerning two securities fraud investigations into its activities by the Securities and Exchange Commission; The International Financial Services Authority in St. Vincent & the Grenadines has revoked these Class I banking licenses: Horizon International Bank Limited, on April 4, 2005; Transglobal Bank Limited, on April 13, 2005; and Triton Capital Bank Limited, on April 13, 2005; How times have changed. On May 26, 2005, something happened that would have been unthinkable when OffshoreAlert was launched in 1997: the Cayman Islands Government issued a press release lauding its co-operation with U. S. authorities in clamping down on financial crime and disclosing that Cayman Islands Chief Justice Anthony Smellie; and OffshoreAlert has unearthed yet another red-flag concerning GISBeX, a Costa Rica-based stock exchange that purports to specialize in securities offered under Regulation S of the Securities Exchange Act in the United States and operates from a web-site at www.gisbex.com.

A New York-based attorney with a conviction for securities fraud is an insider in a penny stock firm controlled by the principals of Bermuda-based Lines Overseas Management, OffshoreAlert can reveal. The involvement of Edward Marvin Grushko casts further suspicion on River Capital Group Inc., which is raising money from the public by claiming it intends to operate as a Bermuda insurer without disclosing that two licensing applications were turned down by the Insurance Admissions Committee of the Bermuda Monetary Authority last year and that no further application has been made since then.

A lawsuit alleging contempt of court has been brought in the United States against Bermuda's biggest law firm, Conyers Dill & Pearman, and one of its clients, ACE Insurance Company Ltd. They are defendants in an adversary proceeding filed at the U. S. Bankruptcy Court for the District of Arizona on April 18, 2005 by Gerald Smith, as Plan Trustee of Boston Chicken Inc. and related parties, and as assignee of former Boston Chicken officers or directors Scott A. Beck and Peer Pedersen.

Tax attorney Denis Kleinfeld and related parties have come out victorious in a bitter legal battle with a former employee of The Kleinfeld Law Firm. The ex-staffer, Michael Rosenbaum, has returned $159,000 that he allegedly misappropriated from the Kleinfeld parties and retracted allegations of wrongdoing that he made against them, including that Denis Kleinfeld had forged Rosenbaum's signature on a corporate check to buy himself a Cadillac and that Kleinfeld was involved in setting up questionable tax shelter arrangements for clients.

Five people in California and three others in Costa Rica were arrested in May for allegedly swindling hundreds of investors out of tens of millions of dollars from 1994 to 2002 in an offshore investment scam.The arrests followed an 83-count indictment - unsealed on May 13, 2005 - at the U. S. District Court for the Central District of California concerning an unlicensed investment fund known as the Genesis Fund.

Article based on an application to collect evidence for a criminal investigation into fraud - pursuant to a request for judicial assistance from Russia - that was filed at federal court in the USA on May 17, 2005. Individuals and businesses mentioned in the request for assistance include Rybak Komchatki, SV Financial Co., Wells Fargo Bank, Moonpath Enterprise Limited, Dalmoreproduct, Visa Ltd., Tianjin Engineering Shipbreaking Co. Ltd., Tianjin Tianma Shipbreaking Co. Ltd., Dmitrii Vladimirivich Dremluga, Lavinia Corporation, Alexander Mikhailovich Cherevik, Moleno Navigation Ltd., Rasim Gadgee Kadirovich Kochabekov, Vasilii Nikolaevich Bondarenko, Inna Bondarenko, Sergey Arkadevich Gilev, Boris Yurevich Kozhushnyi, Victor Kaganov, and Bank of Moscow.

Article based on an application to collect evidence for a criminal investigation into alleged customs violations - pursuant to a request for judicial assistance from the Ukraine - that was filed at federal court in the USA on March 9, 2005. Individuals and businesses mentioned in the request for assistance include Rosan, Meest-Amerika, Inc, and Nadiya Zhuk.

Article based on an application to collect evidence for a criminal investigation into a threatening telephone call made to the head of a pro-Palestinian organization - pursuant to a request for judicial assistance - that was filed at federal court in the USA on May 23, 2005. Individuals and businesses mentioned in the request for judicial assistance include Jocelyne Zemor, CAPJO Association, and France Telecom Longues Distances.

In the space of four or five years, Halliburton, the international oil services and construction conglomerate that is under attack for overcharging and underperforming in Iraq, has gone from reporting approximately 70 to 80 offshore subsidiaries in its annual SEC filing to just two, both in the Cayman Islands.Offshore networks had become a central part of Halliburton's management and financial strategy. When current United States Vice President Dick Cheney was CEO of Halliburton from 1995 to 2000, the company's offshore subsidiaries increased from nine to 44. By the year 2001, that had nearly doubled. Now most of them have gone missing!

The liquidator of a fraudulently-operated offshore bank has taken steps to prevent a California-based CPA from obtaining a "preferred" recovery.Marcus Wide, liquidator of Mariner International Bank, of St. Vincent & the Grenadines, filed a petition against Sandy Magid, as successor Trustee of the Alta Trust dated June 30,1999; Challenge Financial Services LLC, f.k.a. VanCleave Enterprises LLC, and Challenge Realty Inc., which are both incorporated in Nevada and based in Winter Park, Florida, at the U. S. Bankruptcy Court for the Middle District of Florida on May 31, 2005.

Article based on an application to collect evidence for a criminal investigation into alleged fraud - pursuant to a request for judicial assistance from Slovenia - that was filed at federal court in the USA on May 16, 2005. Individuals and businesses mentioned in the request for assistance include Branko Pintaric, Dusan Povse, Roman Zor, and Firstar Bank.

Article based on an application to collect evidence for a criminal investigation into alleged fraud by Miroslav Kremla - pursuant to a request for judicial assistance from the Czech Republic - that was filed at federal court in the USA on May 11, 2005.

Article based on an application to transfer a prisoner to testify at a criminal hearing into alleged tax fraud by RJR Nabisco - pursuant to a request for judicial assistance from Canada - that was filed at federal court in the USA on May 11, 2005. Individuals and businesses mentioned in the request for assistance include RJR Tobacco International, Inc., JTI MacDonald Corp., RJ Reynolds Tobacco Co. (Delaware), Northern Brands International, Inc., Edward Lang, Paul Neumann, Roland Kostantos, Stanley Smith, Peter MacGregor, Jaap Uittenbogaard, Dale Sisel, Larry Miller, Leslie Thompson, Robert Tavano, Pierre Brunelle, Janice Carswell, Jeremy Harris, Anthony Butterworth, Robert Miron, Robert Sheets, James Johnston, Stonemarker Enterprises Inc., David Beazley, Jeanne Schlottman, Perry Alwyn Horne, and Keith MacCulloch.

Article based on an application to collect evidence for a criminal investigation into alleged fraud - pursuant to a request for judicial assistance from Estonia - that was filed at federal court in the USA on March 31, 2005. Individuals and businesses mentioned in the request for assistance include Juri Kerzo, and Microsoft Corporation.

Article based on an application to collect evidence for a criminal investigation into alleged narcotics-trafficking and money laundering - pursuant to a request for judicial assistance from Peru - that was filed at federal court in the USA on December 10, 2004. Individuals and businesses mentioned in the request for assistance include Marco Antonio Cardenas Minaya, Juan Vidaurre Beltran, Ocean Services SAC, Naviera Ocean SAC, Ocean Lines SAC, Pesquera Ocean Fish SAC, Consulting Cabinet D'Studios SL, Lurrc Trading SA, Barclays Bank, Amilcar Avila Lazo, Daniel Cuero Palominos, M/V Nativa, Banco Wiese Sudameris, and Amilcar Avila Lazo.

Article based on an application to collect evidence for a criminal investigation into alleged financial improprieties - pursuant to a request for judicial assistance from Poland - that was filed at federal court in the USA on May 5, 2005. Individuals and businesses mentioned in the request for assistance include Marek Pawlowski, Eksport 707, Gedania, and Bombay Company.

Article based on an application to collect evidence for a criminal investigation into alleged investment fraud - pursuant to a request for judicial assistance from the United Kingdom - that was filed at federal court in the USA on April 28, 2005. Individuals and businesses mentioned in the request for assistance include Kevin Dooley, Trevor Prider, Dooley & Co., CFC Finance Ltd., JPMorgan Chase, Chase Manhattan Bank, Citco Banking Corporation, Golconda Partners Ltd., Woodborough Corporation Ltd., Ken Wiseman II, Wiseman Hedge Fund, Barclays Bank, Fiserv Correspondent Services Inc., JD Horwood, Imhoff Clearing Corporation, Imhoff Clearing Corporation, National Westminster Bank, First National Bank, Crystal Cathedral, Somerset Auctions Inc., Steven Thomas Antiques, Nelson Storage, Irvine Regional Hospital and Medical Center, The Inside Story, Abe Corporation, RAD Industries Inc., Majestic Marble & Granite, and US Remodelers Inc.

Article based on an application to collect evidence for a criminal investigation into alleged fraud and money laundering by Joseph Chibi Dariye - pursuant to a request for judicial assistance from the United Kingdom - that was filed at federal court in the USA on April 15, 2005.

Article based on an application to collect evidence for a criminal investigation into alleged smuggling - pursuant to a request for judicial assistance from Trinidad & Tobago - that was filed at federal court in the USA on May 17, 2005. Individuals and businesses mentioned in the request for assistance include Calmaquip Engineering Inc., Soares de Costa Contractors Inc., Birk Hillman Consultants Inc., National Insurance Properties Development Corp., Airports Authority of Trinidad and Tobago, The Maritime Group of Companies, Maritime General Insurance Inc., Fidelity Financing and Leasing Ltd., Maritime Life (Caribbean) Ltd., Northern Construction Inc., and Dresdner Bank Lateinamerika AG.

Article based on an application to collect evidence for a criminal investigation into alleged smuggling - pursuant to a request for judicial assistance for Russia - that was filed at federal court on May 18, 2005. Individuals and businesses mentioned in the request for assistance include Abris Services LLC, Intra Hellas Ltd., and Logic Systems.

Section 304 Petition for Assistance in Insolvency Proceedings in the Bahamas by Clifford Johnson and Wayne Aranha, as the Foreign Representatives of Globe-X Management Limited and Globe-X Canadiana Limited, at the U. S. Bankruptcy Court for the Southern District of New York.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Portugal into Jose Manuel Moura

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Turkey into Cem Bertan Menemencioglu, Dr. Gunser Candevir and Goksen Menemencioglu for alleged fraud.

Section 304 Petition for Assistance in Insolvency Proceedings in St. Vincent and the Grenadines by Marcus Wide, as the Foreign Representative of Mariner International Bank Ltd., at the U. S. Bankruptcy Court for the Middle District of Florida.

Amended Complaint in Sandy Rumble, d.b.a. Britannica Chauffeurs Services, v. Robert Waterhouse, Godfrey Waterhouse, Nicolaas Jan Carel Francken, Phoenix Broker, Inc., Main Street Brokerage, Inc., and Contracting Bonding Limited at the U. S. District Court for the Middle District of Georgia.

First Amended Class Action Complaint in Sandy Rumble, d.b.a. Britannica Chauffeur Services v. Robert Waterhouse, Godfrey Waterhouse, Nicolaas Jan Carel Francken, Phoenix Broker, Inc., Mainstreet Brokerage, Inc., and Contracting Bonding Limited at the U. S. District Court for the Middle District of Georgia.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Paraguay into Guillermo Benitez Recalde for alleged forgery.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Colombia into Albert Van Bilderbeek Soto, Maria Clara Jaramillo Soto, Christian Hernando Ayalde Ocana, CI Flora Andina Ltda., Servicios Petroleros del Caribe, Llanos Oil Exploration Ltda., CI Transglobal Intertrans, SA, CI Intertextil, SA and others for suspected involvement in narcotics trafficking and money laundering.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Poland into Marek Pawlowski, President of Gedania Co-operative, for allegedly channeling business contracts to his own company, Eksport 707, to the detriment of Gedania.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in France into alleged threats against the daughter of Jocelyne Zemor "unless Ms. Zemor stopped opposing official receptions of the Aide au bein-etre du Soldat Iraelien association, a pro-Israeli organization".

Bermuda based stock broker Lines Overseas Management has been caught up in yet another securities fraud investigation being carried out by the Securities & Exchange Commission in the United States.LOM was named as a relief defendant in a civil complaint

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Portugal into Salvador da Silva Goncalves for alleged negligent homicide.

Application for the appointment of a Commissioner to collect evidence - pursuant to a request for judicial assistance - for a criminal investigation into Luis Orlando Castilla Prieto for alleged narcotics trafficking.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Russia in to alleged smuggling involving Abris Services LLC.

Second Amendment Complaint in U.S. Bank N.A. v. Eel River Investment Company, Veril L. Olsen, Michael D. Ross, John E. Breazile, Michael Sullivan, Sterne Agee & Leech Inc., Eel River Acquisition Corporation, Ross Williamson & Loitz PLLC, Sendjer Shefket, of England; Target International Funds Ltd., of England, and Eel River Lumber Products LLC at the U. S. District Court for the Western District of Washington.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Russia into the alleged embezzlement of the proceeds of the sale of a ship named Rybak Komchatki which were allegedly transferred to a company domiciled in Oregon called SV Financial, which was owned by Victor Kaganov and managed by Oregon dentist Anna Shimanovsky and her husband, Roman Shimanovsky, according to the request for assistance.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Slovenia into Branko Pintaric, Dusan Povse and Roman Zor for alleged fraud.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Turkey into Bayram Oz, Neset Kaya, Adnan Sen, Mustafa Zafer Alsac and Nusret Caliskan for alleged fraud.

The principal owner of a failed offshore stock broker known as SEGOES has filed a suspicious activity report against two of its former officers and a penny stock promoter.John Kaweske, a U. S. national with Caymanian status, supplied information to

Section 304 Petition for Assistance in Insolvency Proceedings in Dominica by Marcus Wide, as the Foreign Representative of Tradex Ltd., at the U. S. Bankruptcy Court for the Central District of California.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in the Czech Republic into Miroslav Kremla for alleged fraud.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Canada into JTI-MacDonald, Corp. (previously known as RJR Macdonald, Inc.), Northern Brands International, Inc., RJ Reynolds Tobacco Co. (Delaware), RJ Reynolds Tobacco International, Inc., Dale Sisel, Jaap Uittenbogaard, Edward Lang, Pierre Brunelle, Paul Neumann, Roland Kostantos, Stanley Smith and Peter MacGregor for alleged tax evasion.

Writ of Summons in National Warranty Insurance Risk Retention Group (in Liquidation) v. Deloitte & Touche (a firm), Ian Wight, Richard Douglas, Michael Pilling, Glen Wigney, Deloitte & Touche USA LLP, Deloitte & Touche LLP, Deloitte Consulting LLP, and Milliman Inc. at the Grand Court of the Cayman Islands.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in India into Rajiv Dinesh Gadkari for allegedly harassing and abusing his wife.