ERON MORTGAGE INFORMATION WEBSITE
THE ERON LENDER COMMITTEE

Eron Lenders Committee Newsletter: June 2, 1998

Capital Preservation, Enhancement, and Recovery

1. Taxation of bills
Price Waterhouse - negotiations have begun with Price Waterhouse. David Craig requests all project leaders who have not yet done so to return to him their authorization for this process. Please include on a separate page any other suggestions for his use in his discussions with PW.

Ladner Downs - David Craig is preparing, with the assistance of the Volunteer Legal Committee, an approach to settling the ELC's account with Ladner Downs. The ELC considers Gordon Johnson a valuable ally and is organizing an arrangement with him for the continuation of his work for Eron lenders.

2. Litigation
Specific individual litigation - PW is developing files for either civil or criminal charges against Eron principals and related parties.

Frank Biller bankruptcy and Michelle Biller - no further news to report at this time.

Class litigation - the ELC is preparing a class action registration form for all lenders as the first step in its collection of data for litigation against regulatory institutions. The ELC keeps open the possibility of a settlement with the prospective defendants, and to that end has prepared an "authorization to negotiate" form, which is being sent to all lenders. Eron lenders will receive the form either by project mailouts or a general PW mailout. The Volunteer Legal Committee is interviewing lawyers who may be interested in undertaking this case. How to fund the work is a problem the committee and the ELC is considering. To the extent the class action case succeeds, only those who have registered for it will benefit. If Eron lenders want to proceed, and if contingency-basis legal counsel is not able to be found, then Eron lenders will be canvassed to support the costs. In any event, to fund the miscellaneous expenses attendant to the ELC's work, as well as to prepare for this litigation, the ELC is requesting all Eron lenders who have not yet contributed the initial $100 to do so now. A cheque may be sent to: David Craig, "in trust"
Treasurer, ELC
#700 - 555 West Hastings St.
Vancouver, B.C. V6B 4N5

To all of those who have contributed, and to those who will now contribute, we gratefully thank you on behalf of all Eron lenders.

3. RCMP-James Tindle remains our contact with the RCMP; the investigation continues, but there is no further news to report at this time.

4. Media- Charlie Smith of the "Georgia Strait" wrote an article on the E.I.C. problem for the April 23rd edition.

5. Revenue Canada- no further news to report at this time.

6. B. C. Securities Commission- the BCSC has sent a questionnaire to Eron lenders comprising certain projects. The ELC will try to learn the intention of this inquiry, having not been notified beforehand of the plan. The ELC advises Eron lenders to complete and return the form, and perhaps mark it "without prejudice."

7. E.I.C. - a fourth steering committee (EIC #4) has now been formed to represent all those Eron lenders who were paid out in the Spring and Summer of 1997 when the term of their loans concluded. An argument has been made by EIC committee #1 that these transactions should be reversed. About 125 individuals and corporations comprise the group, which may seek Judge Tysoe's authorization to be represented by legal counsel to be paid from EIC and Eron assets.

The next EIC Hearing before Judge Tysoe is June 16, 1998.


Communications, Projects, Volunteers

1. The website continues to accumulate information, with Catherine Palmer at Price Waterhouse working helpfully on our behalf to make the process as user-friendly and efficient as possible. In addition, an Eron volunteer who is experienced with website operations, David Jackson, has offered to assist any project leaders or committee members in organizing material for efficient posting on the website. For further information, please contact David at fax #986-6215 or email: www.vanlang.com

2. Database- Volunteer manager of the database, John Hall, (tel #876-9081 or fax #876-9082) continues to improve the database, and invites all Eron lenders who have changed postal or email addresses or changed telephone numbers or fax numbers to notify him and Erika Inacio.

3. Telephone tree- Volunteer communication coordinator, Erika Inacio, has organized our communications network. The volunteer group for the telephone tree continues to grow, but we seek more volunteers from within and outside the Greater Vancouver area. We need volunteers for Vancouver Island, and other outlying districts. Additionally, we want volunteers who can fax and email. Please contact Erika at tel. # 438-0485.

4. Postal Communication - Price Waterhouse may be sending an all-lenders letter in June. If so, ELC items will be enclosed.

5. Fax and email- our volunteer groups for contacting Eron lenders by fax and email is growing, but we seek more help, as mentioned above. Contact Erika.

6. Project Leaders
Please disseminate to all members of your project the form "Authorization to negotiate with the B.C. Government."

Please return immediately to David Craig the form requiring project leaders' signatures for "Authorization to negotiate with Price Waterhouse."

Project volunteers liability issue - Price Waterhouse has sought and has been granted by Judge Tysoe an order respecting this matter. The details of the order will be available shortly.

7. Schedule of upcoming events - A draft "Schedule of Upcoming Events" has been prepared for the period June to November 1998.

8. Newsletter- This newsletter is the production of the ELC and of volunteer committee members. It will be posted on the website without editing by Price Waterhouse or Russell & DuMoulin, who take no responsibility for its contents. Any Eron lender who wishes to offer information or suggest ideas for its preparation is invited to contact Steve Ripley at tel. #222-1646, fax #222-1641, or email sripley@helix.net

9. The Minutes of the Joint ELC- Project leaders meetings are posted on the website. If you wish a copy, please fax Steve Ripley at #222-1641.

10. Meetings- see the "Schedule of Upcoming Events".
Next Joint ELC - Project Leaders meeting is July 7, 1998 at 7:00 pm, Royal Canadian Legion Hall, 4356 East Hastings, Burnaby. For further information regarding scheduled meetings, contact volunteer,Martje Hartmann, tel. #538-6601 or fax # #536-6108.




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