Bermuda Stock Exchange to set up investors’ compensation pool

A pool of money to help compensate investors who will lose out in the event of a trading member of the Bermuda Stock Exchange collapsing is likely to be in place by the end of the year, we have been told. To get the pool started, each trading member of the Exchange will be asked to contribute a one-off lump sum.

Bermuda court orders Telecheck owners to repay loans

Brothers Richard and Thomas Burns and Chris Donnachie, the principals of the failed Telecheck financial services group, have been ordered by Supreme Court to repay immediately to the company loans and interest totalling $2.23 million.At a hearing on Wednesday brought by Telecheck's liquidator, accounting firm Kempe & Whittle, the court decided that the three directors of Telecheck Holdings Ltd. did not follow the proper procedures when granting themselves the loans.

New BSX boss receives immigration clearance

Briton William A. Woods has been cleared by immigration to become the first chief executive officer of the rapidly-developing Bermuda Stock Exchange. The Exchange has also announced that Greg Wojciechowski, until now the Exchange's sole employee, has been promoted from project manager to chief operating officer.

JF Guaranteed Currency Trust Fund promoted in Bermuda

Anyone who believes the Japanese yen is overvalued against the U.S. dollar should take a look at a new mutual fund brought out by Jardine Fleming, one of the world's leading fund management companies, with a particularly strong presence in the Far East.

Bermuda attorney Graham Collis criticised by US counterpart

Lawyer Graham Collis has been criticised by an American attorney for "a lack of co-operation" in the investigation of two U.S. businessmen accused of defrauding investors of millions of dollars.U.S. investigators into the failed New Jersey-based Sigma commodities group believe that "tens of millions" of dollars of funds were transferred out of the company to bank accounts in London and Bermuda shortly before it collapsed.Attorney William Horton, acting for the U.S. court-appointed receiver of the Sigma Group, which includes Bermuda-registered BTB Group Ltd, said he was "disgusted" at the lack of help given to the receiver by Mr. Collis, of Conyers Dill & Pearman, who represents BTB Group on the island.

Trout Trading criticized by Bermuda court

Trout Trading Fund, a massive mutual fund group catering to high net worth individuals, has been criticized by Chief Justice Austin Ward for preventing a member of the public from exercising his legal right to view its register of shareholders. But Mr. Ward cannot take action against the Bermuda-based company because, after a legal action was brought against the firm in an effort to force it to open up its share register, a Private Members' Bill was passed a month later in the House of Assembly, exempting Trout Trading from the provisions of The Companies Act 1981 that allows the public access to its register.

Telecheck liquidator sues Bermuda law firm Hallett, Whitney & Patton

Law firm Hallett Whitney & Patton, who were the legal advisers to the failed Telecheck savings and credit card group, is being sued for $595,000 by Telecheck's liquidator, Ernst & Young.John Cooper, a partner in HW&P, would not discuss the action, other than to say: "I know of the claim and the theory behind it and all I can say is that it's going to be disputed. We're in the process of obtaining legal representation."

Strategic Asset Management lays off five staff due to hedge fund liquidation

Strategic Asset Management Ltd. is laying off four staff in Bermuda and one in London following the firm's decision to liquidate its hedge fund.SAM hopes to avoid further job cuts among its total staff of 21 but cannot make firm decisions until the firm's principals decide what to do next.The company's traders may start trading managed accounts which are tailor-made to suit each client's specific needs, rather than another mutual fund, said Andrew Davisson, one of SAM's three partners.

Strategic Asset Management liquidates SAM Global Fund

Strategic Asset Management Ltd. is liquidating its high-risk derivatives fund after suffering heavy losses over March and April.Following a 7.1 per cent loss in March, nervous investors in the SAM Global Fund redeemed $40 million worth of shares in April.The forced liquidation of market positions to pay these shareholders hindered the fund's performance and contributed to a further loss of 8.5 per cent in April, said Andrew Davisson, one of the fund's three partners.

BFCL tries to pre-lease 70 per cent of office space

The Bermuda Financial Centre Ltd development in Hamilton will go ahead as planned if the company can pre-lease 70 per cent of the project's office space, BFCL's president Mike Winfield us yesterday. Raising enough debt and equity to build the $82.5 million office space/luxury residences phase of the project no longer appears to be a problem, providing the lease commitments for the office space can be put into place.

Authority Limited

Authority Limited - Enforcement Actions - Isle of Man Financial Supervision Commission

Bermuda-based Sagacity Futures Fund closes after 14 months

The Sagacity Futures Fund is being liquidated 14 months after launch following heavy losses incurred by the fall of the US dollar to record lows against the Japanese Yen during March.Sagacity, which was managed by former Bank of Bermuda chief economist Allan Marshall and sold by Lines Overseas Management, was a high risk fund that took leveraged positions in financial futures and related options traded on the world's major futures exchanges.

Goodman & Co. launches new Bermuda fund

Leading Canadian investment firm Goodman & Company, whose parent, Dundee Bancorp, owns a 40 per cent stake in Bermuda-based Mid-Ocean Trust Company Ltd, has launched a new mutual fund in Bermuda.The fund - Mid-Ocean Global Asset Allocation Fund - has an authorised capital of US$100 million and will be managed by Goodman & Company (Bermuda) Ltd, an exempted company which recently began operations on the island. The fund will start with approximately $5 million under management.

David Notman appointed head of Interinvest (Bermuda)

Former Bank of Butterfield officer David Notman has become president of international investment advisors Interinvest (Bermuda) Ltd, which has moved to new offices opposite ACE Insurance on Front Street, Hamilton.In his new role, Mr Notman will run Interinvest's Bermuda operations and will liaise with its offices overseas.

Possible insider trading in BF&M shares

BF&M Ltd announced a ten per cent stock dividend to shareholders yesterday - only days after some of the largest volumes of trading in its shares for several months. A decision to reward long-suffering shareholders of BF&M Ltd, who have seen their capital investment drop from $10.50 per share in June, 1993, to $6.75 currently, was taken by BF&M's board of directors on December 20.

BFCL experiences financing delays

The financial restructuring of the $138 million Bermuda Financial Centre Ltd project has been delayed while efforts are made to raise debt financing abroad, we can reveal. While the Bank of Bermuda has succeeded in raising $24 million in equity commitments locally for the $58.7 million office block part of the project, it has been unable to secure the necessary loans for the scheme from within the island.

Humphrey Percy joins Strategic Asset Management

Briton Humphrey Percy has been appointed as an executive director of Bermuda-based investment advisor Strategic Asset Management Ltd.His appointment, which became effective on December 1, follows the departure at the end of the summer of Mohamed Zayan, who was one of the founding principals of SAM when it was formed last year

BSX to start accepting member applications

Stock brokers in Bermuda and overseas will be able to join the Bermuda Stock Exchange as of next week, we can reveal. Literature explaining how to join is due to be sent out over the holiday period to investment firms locally and in North America, where there has been a lot of interest from brokers.

Bermuda investors seek to sell Turks & Caicos property

FOR SALE - 1,375 acres of undeveloped land in uninhabited East Caicos, 50-100 yards from the ocean, asking price: in excess of $563,750.The seller is Solar Enterprises, the only local company listed on the Bermuda Stock Exchange whose shares have never traded.

Dubious Canadian firm forms Bermuda subsidiary

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.

BFCL – confidential report outlines projections

The Bermuda Financial Centre Ltd, including the hotel and apartment section, would make an estimated profit of $14.5 million by 1997 rising to $20.4 million ten years later, according to projections in a report prepared by accounting firm Coopers & Lybrand (Bahrain). And return on equity was forecast to be minus 7.96 per cent for both 1995 and 1996 but improving to 20.99 percent, 33.7 per cent, 16.66 per cent and 29.58 per cent in 1997-99 and 2007, respectively. 

BFCL management contract could change hands

The multi-million dollar contract to manage the Bermuda Financial Centre Ltd project may soon be up for grabs. Winworth Ltd, which is owned by Mike Winfield, Heather Robinson and Fraser Butterworth, is on the verge of giving up the contract, we have been told.

Trout Trading fund company sued in attempt to view its share register

Local businessman George Rushe has taken a $650 million mutual fund group to court in an attempt to see its list of shareholders.Mr Rushe has asked Supreme Court to order Trout Trading Fund Ltd and its management company, Trout Trading Fund Management Company Ltd, to show him their share registers.

Bermuda Fire directors stay silent despite allegations of fraud at Bermuda Fire & Marine Insurance

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.

Bermuda attacked by US politicians over Bermuda Fire ‘fraud’

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.'

Bank of Butterfield caught up in US stock scandal

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.

Wolfgang Flottl to move from Bermuda to New York

Financial trader Wolfgang Flottl is pulling out of Bermuda over the next 18 months and moving his trading operations to New York, we can reveal.His withdrawal will have a significant impact on the local economy and will put pressure on landlords to reduce high-end residential rents.

Glaxo closes Bermuda investment office following losses

British pharmaceuticals giant Glaxo, which has taken heavy losses in the bond markets in recent months, is closing down its Bermuda investment arm with the loss of ten jobs.The decision follows a sweeping reorganization of Glaxo's board of directors announced a week ago.

Wolfgang Flottl obtains court order for recalling of 220,000 copies of Austrian magazine

Bermuda-based trader Wolfgang Flottl obtained a court order this week banning 220,000 copies of an Austrian magazine from newsstands on the grounds that they contained an article allegedly libelling him. Austrian police carried out a door-to-door visit of Vienna's newsagents on Wednesday evening, confiscating all copies of the down-market tabloid News.

BF&M liquidators bring first lawsuit

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.

Regal Intl investors see light at the end of the tunnel

Bermudian investors who have for years been staring at a collective paper loss of several million dollars from their investment in a publicly-quoted US company had something to cheer about this week.They stand to get some of their investment back - or may even end up with a profit - following the announcement on Monday of a proposed deal between NYSE-listed Regal International and a Hong Kong/Chinese conglomerate.

Thomas Coughlin talks about scandal but not about missing money

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.

Regulation S securities – John McNiff’s Offshore Investment Fund

More US companies may turn towards Regulation S securities offerings as a way of raising money due to the recent plunge of American stock markets, according to investment manager John McNiff.Mr McNiff, who runs Bermuda-based Offshore Investment Fund Ltd (OIFL), said US firms would find it increasingly difficult to raise money through public offerings in the current climate of market uncertainty.

Beinhocker and Plunkett firm faces winding-up

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.

New hope for Beinhocker and Plunkett investors

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.

Investors get stung time and again on Vancouver Stock Exchange

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'.

Bermuda Fire chairman criticizes DTI

Bermuda Fire and Marine Insurance chairman Charles Collis says responsibility for regulatory compliance by the company's UK subsidiary was the job of H S Weavers.

BFCL tries to raise $131 million

Promoters behind the Bermuda Financial Centre said this week that they are seeking Bermudian investors as much as Bermuda dollar investments for their proposed $131 million hotel, conference and office complex.

BFCL plans $5 m IPO

Bermudians will soon be invited to buy in to the international business industry — by purchasing shares in a new company planning to replace the Bermudiana Hotel with a posh, five-star business hotel and office complex. The project, which includes a big convention and leisure centre, could be completed in 1996 and is expected to inject millions of dollars into the economy.