KPMG

The Supreme Court of British Columbia has appointed a Receiver for US$20 million of assets belonging to two offshore banks, their clients and related parties - more than three years after freezing them.Following its appointment on June 16, 2003, KPMG Inc., in Vancouver, Canada, is seeking claimants for the funds, which were frozen in April/May, 2000 as part of an investigation into securities fraud.

The Bank of Bermuda sacked 14 staff in June after catching them distributing pornographic e-mails, reported The Royal Gazette newspaper; Imperial Consolidated co-founders Jared Brook and Lincoln Fraser are close to being arrested by the Serious Fraud Office in the United Kingdom, according to the June 12, 2003 edition of 'Private Eye', a British satirical magazine; Meanwhile, UK-registered financial services firm Kingsbridge Holdings PLC has partly blamed its "very disappointing" loss of £1.397 million (US$2.3 million) for the six months ended February 28, 2003 on Imperial Consolidated; While owners of web-sites in the United States are legally protected against libel actions from people who believe they have been defamed on Internet message boards, that does not appear to be the case in the Cayman Islands; In the United States, where there is a tax protester, there is usually an illegal offshore investment scheme not far behind and Eddie Ray Kahn, who lives in Sorrento, Florida, is no exception; The British Virgin Islands Financial Services Commission issued a warning about Richmont Investments Inc. on April 10, 2003; Former Bank of Bermuda (Cayman) officer Marc Vanmarsenille, who lost his job in the aftermath of the Cash 4 Titles fiasco, is a defendant in a civil lawsuit filed at the Turks & Caicos Islands Supreme Court on November 7, 2002; At the same court, a lawsuit has been filed against TCI-registered Sealand Housing Corporation in an attempt to collect on a judgment awarded in the UK High Court; Two businessmen previously exposed in OffshoreAlert for their involvement in the sale and operation of sham offshore credit unions involving Nevis, Panama and the United States have each been sentenced to 25 years in prison, ten of which is suspended, for defrauding a 101-year-old woman out of her life savings; and If creditors of Bahamas-based Suisse Security Bank & Trust were wondering why the winding-up of the bank is taking so long, they should read the prelude to the recently-released written judgment by Bahamas Supreme Court Justice Austin Davis in which he turned down the bank's attempt to regain its banking license, which was suspended on March 5, 2001 and revoked on April 2, 2001.

Winding Up Petition in the matter of National Warranty Insurance Risk Retention Group at the Grand Court of the Cayman Islands.

Auditor KPMG stated in an SEC filing on March 21 that there is "substantial doubt" about the ability of Annuity & Life Re to continue as a going concern. The comment was made in a note to the financial statements dated February 11, 2003 that was part of an amended annual report for fiscal 2001 that contained restated figures. The auditor cited "significant losses from operations and experienced liquidity demands".

A civil complaint has been filed in the United States against failed Turks & Caicos Islands-based Atlas Financial Group, its auditor, KPMG, and several current or former officers. Among the defendants are the Managing Director of KPMG (TCI), Gary Brough, 40, who is British; and the accounting firm's former Director of Corporate Finance,Robert Gass, 38, who is Canadian. AFG founders Wayne Turner and his son, Scott Turner, who are both Canadian nationals, are also defendants.

Arthur Andersen's Bermuda registered captive, Professional Services Insurance Company Ltd., is seeking to enter into a Scheme of Arrangement with its creditors.An order was issued at Bermuda Supreme Court on November 14, 2002 granting the firm's application to meet with

Naïve or cynical? That was a logical question to ask of United States Senator Hillary Rodham Clinton and Governor George Pataki after they teamed up with suspected fraudster Jerry C. Nims, whose Bermuda based business failures have cost investors millions

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Belgium into Jozef Lernout, Pol Hauspie and Lernout & Hauspie for alleged fraud.

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Belgium into Jozef Lernaut, Pol Haupsieof Lernaut & Hauspie and Lernout & Hauspie Speech Products for alleged fraud, forgery, insider dealing and price manipulation.

Application for the issuance of Letters Rogatory by the USA regarding evidence in Costa Rica that is required for a criminal investigation into Tim Ray Sacora, Michael Wolf, Gibraltar Bank of Commerce, Banco Solidario de Costa Rica, Florida Secured Funding, and Senior Marketing Consultants Inc. for suspected fraud and money laundering.

A California court has approved a request by the Internal Revenue Service for leave to file "John Doe" summonses on VISA International as part of an investigation into tax evasion using offshore credit cards. The order, issued on March 28, 2002, allows the IRS to examine the records of VISA credit or debit cards issued "by, through, or on behalf of banks or other financial institutions" in 31 offshore jurisdictions.

Enron Corp's Bermuda-registered captive, Enron Re Ltd., has assets of just $9.58 million to meet its liabilities, according to bankruptcy court filings. Creditors of the firm include Enron Corp., Enron North America, Risk Management & Trading Corp., European Finance Re and Harrington International Insurance Ltd.

Section 304 Petition for Assistance in Insolvency Proceedings in Bermuda by Malcolm Butterfield and Anthony McMahon, as the Foreign Representatives of Enron Re Ltd., at the U. S. Bankruptcy Court for the Southern District of New York.

Canadian businessman Scott Turner, who is subject to an arrest warrant in the Turks & Caicos Islands for suspected fraud, has issued a letter attacking other members of his failed stockbroker Atlas Securities Inc.Nowhere in the five page letter, which

KPMG (a firm) vs. J M D Dwyer Estate Equities Int. - Bermuda Supreme Court

Police are investigating Wayne Turner and his son, Scott, for allegedly misappropriating an estimated $8 million from clients of Atlas Securities Inc., of the Turks & Caicos Islands.TCI police began an investigation after a KPMG audit apparently turned up evidence that the Turners had used client funds to cover margin calls relating to their personal trading accounts.

Statement of Claim in Atlas Securities, Inc. v. Wayne Turner at the Supreme Court of Nova Scotia.

Some of the biggest names in offshore finance have been named as defendants in a civil lawsuit filed in the United States by investors who claim to have been defrauded of $5 million. Defendants are Matheson Trustees (BVI) Limited, Matheson Trust Company (BVI) Limited, Bank of Bermuda, Credit Suisse, of Switzerland; UBS, of Switzerland; and KPMG, of the British Virgin Islands.

A team of accountants from KPMG arrived in Bermuda this month to begin its assessment of Bermuda's performance against the international standards of best practices.

KPMG has resigned as auditor of LaSalle Re due to a conflict of interest.The accounting firm cited "a potential independence issue arising from a personal relationship between an officer of LaSalle Re and a member of the firm of KPMG not working on the LaSalle Re audit", stated a press release issued by the reinsurer.

April was yet another disastrous month for Stirling Cooke Brown Holdings as its share price fell by 60 per cent and KPMG Peat Marwick resigned as its auditor after just two years. The company also announced it planned to hire a financial adviser to "explore ways to boost shareholder value", a move which often signals that a company is considering putting itself up for sale.

Section 304 Petition for Assistance in Insolvency Proceedings in Bermuda by Malcolm Butterfield and Anthony McMahon, as the Foreign Representatives of Belvedere Insurance Company Limited, at the U. S. Bankruptcy Court for the Southern District of New York.

Thorne vs. Wallace Robson - Grand Court of the Cayman Islands

The authorities in Ireland were waiting anxiously this week to see if the Grand Court of the Cayman Islands will give them permission to interview Cayman bankers and auditors who may have information about alleged illegal payments to former Irish Prime Minister Charles Haughey.

KPMG Peat Marwick (a firm) vs. Foreign Trade Bank Limited - Grand Court of the Cayman Islands

KPMG Peat Marwick (a firm) vs. Probursa Securities Ltd. - Grand Court of the Cayman Islands

Isle of Man Financial Supervision Commission vs. Keith Leslie King - Notice of Direction - Isle of Man Financial Supervision Commission - December 5, 1995

Bermuda-based Mutual Risk Management, whose shares are traded on the New York Stock Exchange, has dismissed its auditor of 18 years, KPMG Peat Marwick, and replaced it with Ernst & Young - but will not officially say why.

Forum Reinsurance Company Limited (In Liquidation) vs. KPMG Peat Marwick Bermuda (a Partnership) - Bermuda Supreme Court

Mutual Reinsurance Company Limited vs. KPMG Peat Marwick et al. - Bermuda Supreme Court

KPMG Peat Marwick vs. Delpai International Insurance Company Inc. - Grand Court of the Cayman Islands

KPMG Peat Marwick vs. Smiths of Cayman Ltd. - Grand Court of the Cayman Islands