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THE ERON LENDER COMMITTEE

MINUTES OF MEETING - December 1, 1998

Joint Eron Lenders Committee - Project Leaders
Legion Hall, Burnaby
Minutes recorded & written by Steve Ripley ( Tel: 222-1646 Fax:222-1641)


1. At 7:10 p.m. James Tindle, as the new Chair of the Eron Lenders Committee, welcomed the Project leaders. He briefly reviewed the Agenda, and stated his intention to oversee efficient and useful ELC-Project Leaders meetings, noting that the coming months were going to be important and busy for project leaders and lenders.


2. Tindle introduced George Mihalopulos, Trust Administrator of the Canadian Western Trust. George stated that in 1998, as his firm had done in 1997, Canadian Western Trust was offering Eron lenders an opportunity to move at reduced fees their RRSP accounts that held Eron assets from Laurentian Bank to Canadian Western Trust. A mailing was planned for the coming week to all lenders explaining the process and its advantages. An arrangement had been made so that a letter from the ELC would also be enclosed, and PWC would assist C.W.T. with the address labels.


3. Tindle introduced the new members of 1998-99 ELC, and invited each to briefly state what their tasks were.

* Ripley is to be Deputy Chair, Secretary, and Operations Manager, responsible for continuing to organize and implement the various communications functions: those amongst lenders, and those between lenders and their project leaders, PWC and other professionals, the B.C. Supreme Court, and other governmental institutions. As noted by Rockandel, Tindle confirmed that whereas the other ELC committee members are volunteers, Ripley will receive an honorarium of eighteen hundred dollars per month for his work, and as such is an employee of the lenders- so long as the ELC and the Court deems his work useful to all lenders.

* Rockandel is to oversee the Bills-Taxation process for the ELC and will also advise on the Legal Committee matters.

* Jasich is to oversee the Legal Committee, and will act, at least temporarily, as the ELC Treasurer.

* At the time of the meeting Inacio and Ferris had not assumed any portfolio, nor had Smith.


4. Tindle gave an overview of the new ELC's intended structure and process. He wishes to delegate to the respective task leaders defined areas of responsibilities, and his expectation is that the leaders of each will form sufficient lender volunteer groups to assist the leaders with their tasks. Tindle himself will focus on the Strategic Planning matters suitable to the Chair, and include Class Action, Media, and RCMP coordination. Tindle will present to the leaders at a later date a revised Constitution, Mission Statement and Bylaws-with the belief that a new, more comprehensive foundation for the ELC may be usefully created, especially considering his estimate that some significant ELC & lenders' matters may persist well beyond the 1998-99 term.


5. Tindle stated the more immediate priorities of the ELC:

* assisting the class action lawsuit,

* increasing the public's awareness of the plight of Eron lenders,

* attending to issues relating to the B.C. Securities Commission,

* affirming the importance of continuing the letter-writing campaign,

* addressing the matter of raising funds for ELC activities that are not otherwise applied for through the Court as approvable charges to general assets,

* working closely- in so far as the ELC can be helpful- with PWC on global issues, such as Revenue Canada taxation adjustments, distribution processes, and litigation matters.

* Tindle stressed the importance of certain themes that he believes must be emphasized: the Attorney General of B.C. must be made aware that Eron lenders may not have received equal treatment under the law, which is an assured intention of the Canadian Charter of Rights. Also, the R.C.M.P. must be assisted however possible to further their timely investigation towards criminal charges for any of those individuals implicated in the alleged fraud.

* Recently, certain Eron lenders had received from the B.C. Securities Commission a Questionnaire, which was discussed. Ian Wragge had been subpoenaed to testify. Tindle stated he would clarify with the BCSC its intentions and the limitations of use of any information provided to it from lenders. David Craig suggested it would be useful to work with the BCSC, as its intention was to accumulate evidence against Slobogian and Biller. If fraud is established, then such a finding may have tax implications for lenders re. Revenue Canada's interpretation of the history of Eron Mortgage Corporation and EIC interest payments.


6. Ripley reviewed for the Project Leaders the information provided as handouts to them as they arrived at the meeting. Nine documents had been issued, covering a range of topics from Slobogian's assets-freeze to the categories of information to be provided by F.I.C.O.M. to Camp Church and Associates for the class-action lawsuit.

* Ripley requested a show of hands from the leaders as to who would be willing to attend a Jan.5/99 joint meeting-a large majority agreed they would attend.

* Ripley reminded the leaders of their commitment and responsibilities as project leaders to keep the communications flow to their members going despite the lenders' disillusionment arising from the news of the last several months. He complimented those leaders who had had special success in doing so, and cited as exemplary the work of Peter Kwok. Ripley also thanked those leaders who had forwarded to him ideas for improving the ELC communications work, citing especially Ian Wragge and Charlotte Trende.


7. Tindle stated that as a result of the prior inquiries of the former ELC and Craig Bushell's detailed negotiations with Revenue Canada PWC had received a letter from Revenue Canada that may result in large savings to many Eron lenders. More details were to be provided by PWC to lenders in the coming months as tax-preparation time arrived. Also, a Revenue Canada interpretation for Eron RIF holders was expected soon.


8. Tindle discussed with the project leaders issues apropos the Distribution process. One Project committee Chair has thought it necessary to hire its own lawyer to become independently involved in the legal argumentation of the pooling question. Tindle expressed his concern about this initiative, questioning whether Fredricksen and Hobb's own summarizing of the range of arguments was not sufficiently competent for Judge Tysoe's purposes.


9. No other business being raised, Tindle adjourned the meeting at about 9:05p.m.




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