ERON MORTGAGE INFORMATION WEBSITE
THE ERON LENDER COMMITTEE

Eron Lenders Committee Newsletter: November 3, 1998

Capital Preservation, Recovery, and Distribution

1. Taxation of bills

PricewaterhouseCoopers, Russell & DuMoulin, Campney & Murphy, et al. David Craig has reached a tentative global settlement with Craig Bushell of PWC respecting the bills of PricewaterhouseCoopers, and of the law firms from both Vancouver and the U.S.A. Once signed and taken to Court for Judge Tysoe's approval the agreement will also provide for further savings on future bills. To the end of August, 1998, the approximate savings to Eron lenders will be over one-half million dollars, on a bill that now is approximately $5.2 M (accounting) and $1.8M (legal).. This $1/2 M savings has resulted from Eron lenders' self-organized work this past year- monitoring, investigating, negotiating, and communicating, which represents 1000's of hours of volunteers and ELC efforts . Craig will report more details at the ELC-Pojects Joint Lenders Meeting on Nov.3 and at the November 15, 1998, Annual General Meeting.

Ladner Downs - David Craig expects to report at the Nov.3 and Nov.15 AGM an agreement with Ladner Downs on the ELC's past bills, and clarify the ELC's ongoing arrangements with Ladner Downs.


2. Distribution Issues

The PricewaterhouseCoopers Inc. (PWC) Summary Report On Distribution Issues prepared for the Court and lawyers has now been readied and sent to Fredricksen (arguing 'non-pooling' ) and Hobbs (arguing 'pooling').The Judicial Trustee (PWC), as the Court appointed Officer of the Court, had been instructed by Judge Tysoe to report without prejudice the factual issues attendant to distribution. Once the lawyers have prepared their arguments a date for a Hearing will be set ,after which Judge Tysoe will issue his Orders on the distribution matters . Thereupon, realized monies may begin to be paid out to Eron lenders -assuming no new legal complications arise.

The projects that are now realized are:


3. Litigation -- Class Action

The matter will be brought before a Supreme Court judge for determination as to whether or not the case warrants class-action certification. It is hoped that the application will be heard prior to the end of the year.

Camp Church has set up an information telephone line:1 (877) 571-2288. In brief, if the certification is granted, then Eron lenders meeting the criteria of the class will be considered to be a part of the class unless they explicitly, in writing, inform Camp Church they wish to opt out of the class. More details about the process will be forthcoming. Once the action is certified, general updates on the litigation will be available at the websites: www.eron-pwl.com and www.geocities.com/WallStreet/6380


4. Other Litigation

Civil -- PWC continues to formulate its lawsuits against various individuals associated with the Eron fiasco. Criminal lawsuits - Inspector Malone, RCMP Commercial Crime Division, has 7 full-time staff members working on the Eron file.The RCMP have now begun their review of information held in PWC files pertinent to their criminal investigations Once cases are suitably defined by the police (RCMP), the information will be presented to the B.C. Crown Counsel, and it will be the B.C. Attorney General's decision as to how to proceed.

Class Action Registration - replies to the ELC from the August 21st mail-out to all Eron lenders continue to be returned and entered into the ELC database. They will be analyzed, and a determination made as to how best to use the information. All information will be held as confidential by the ELC and Database Manager until used to coordinate other class action activity.

Brian Slobogian - Investigations continue towards civil &/ criminal lawsuits.


5. Onalee Slobogian- Confirmation has been received by the ELC that PWC, on behalf of Eron lenders, holds the Duplicate Certificate of Title to 2250 Folkstone Way, West Vancouver. The assessed value of the property presently is $300,000.

Frank Biller --Investigations continue towards civil &/ criminal lawsuits.


6. Michelle Biller - Mrs Biller has reportedly changed her mind about agreeing to a settlement re. Biller Holdings. PWC will now have to pursue litigation if Eron lenders are to recover further funds from her.


7. Other Investigations -- On behalf of the ELC, James Tindle is working to investigate other information that may prove useful to all Eron lenders in our attempts to recover our capital. Contact James with any item you think might further these efforts: tel #438-0915 or fax #738-2795.


7. Revenue Canada -- Craig Bushell of PWC has undertaken to discuss with Revenue Canada the problems pertaining to RIF holders. A determination of the status of their "frozen" assets held in RIF accounts must be made for the tax year 1998. The matter of the "crystallization" of Eron lenders' losses for this tax year ,1998, will also be addressed by PWC. Revenue Canada has replied in letter of October20 stating matters have been referred to the Rulings Directorate in Ottawa.


8. Negotiations with the B.C. Government -- David Craig and Craig Bushell have discussed the most constructive way to approach negotiations with the B.C. Government about the damages sustained by Eron lenders, and how to protect and prevent B.C. citizens from further such catastrophes. David Craig has spoken ñinformally- with R. Hobart, and Hobart's office has issued two documents relevant to Eron lenders. The first is a set of "Questions and Answers" discussing the roles, responsibilities, and duties of the administrators of the Mortgage Brokers Act (MBA ). The second document states amendments to the MBA that will become effective in 1998. Both documents can be read in their entirety on our website.

9. B.C. Securities Commission -- In a September 16, 1998, reply to an inquiry by an Eron lender, the B.C.S.C. exempts itself from any responsibility for the Eron problems because Eron Mortgage Corporation was not registered with the B.C.S.C. No mention is made of the fact that Eron was improperly issuing securities and that the B.C.S.C. was notified of this fact by FICOM.

Chartered Accountants Institute of British Columbia -- A complaint has been filed against Douglas Reid, an accountant for Eron.


11. Media -- David Craig has been interviewed at various times by reporters from the CBC,CKWX, and CKNW. David Baines wrote a major review article for the October3 "Vancouver Sun". The CBC on October26 broadcast on 'the National' evening news a special report titled "Telemarketing Stock Scams", certain aspects of the history of which are eerily similar to Eron's To borrow a VCR copy of this report for viewing at home contact Steve Ripley at tel. 222-1646 / fax 222-1641.


12. Letter-Writing Campaign -- We have had a good start to the letter-writing campaign, and may we encourage those who have not yet done so to take pen in hand and write


13. Funding -- The ELC, on behalf of all lenders, sincerely thanks those individuals who have contributed various amounts up to $100. We appreciate the financial sacrifices that Eron lenders are making when they so donate.

- For those lenders who are able to contribute, and who have not yet done so, may we ask your participation. Send your cheque to:

Eron Lenders Committee
"David Craig, in trust"
Treasurer, ELC
#707 - 1112 West Pender Street
Vancouver, B.C. V6E 2S1


14. ELC Financials -- David Craig will report the first year financials at the November 15th Annual General Meeting.


15. Honorarium-- Before the end of the first term, an application will be made by the ELC to Judge Tysoe respecting honorariums and/or out-of-pocket expenses for those ELC members who worked from November 1997 to November 1998. The amount, if any, will be finally determined by the Court. All individuals who have filed a Notice of Appearance to the Court will be sent a copy of the application. Additionally, it will be posted on the website.


Communications, Projects, Volunteers

16. Project Leaders

Please remember to distribute to your project members as completely as your committee can the information in the newsletter.This saves all Eron lenders money by informing individuals of a wide range of information that otherwise they may believe they can only obtain by phoning PWC at considerable hourly cost to lenders.

For project leaders who wish to use the website for postings, please telephone/fax/email Catherine Palmer your information. Preparation of your material will be assisted by our volunteer webmaster, David Jackson, tel #986-3718 or fax #986-6215 or email address www.vanlang.com Catherine Palmer's email address is: contact@eron-pwl.com, to be distinguished from PWC's website: www.eron-pwl.com

- Project leaders/members updated information re addresses, telephone numbers, fax and email should be sent to Wendy Menghi, tel #929-6003 or John Hall tel #876-9081 or fax #876-9082.


17. Website-- The Eron website www.eron-pwl.com also functions as our archives. Project leaders, please encourage your members who are unfamiliar with visiting a website to give it a try at a friend's home or at a public library.

18. Database-- John Halll operates the database, tel #876-9081 or fax #876-9082.


19. Volunteers-- As a result of the all-lenders mailing, a number of new volunteers have offered their help -- thank you! Our coordinators are : Wendy Menghi tel #929-6003, Erika Inacio tel.# 438-0485 , and Martje Hartman tel.# 538-6601.


20. Nominations and Election

- The following individuals have been nominated and have agreed to stand for election to the ELC for the 2nd term, November 1998 - November 1999. They are: Al Ferris, Erika Inacio, Anthony Jasich, , Steve Ripley, Jack Rockandel, Don Smith and James Tindle.

- Seven individuals are to be elected; two for the ELC, and five as alternates in a consulting role and as replacements should one or more of the ELC members fall ill or resign. A ballot has been sent to all lenders inviting them to vote for two of the three individuals who wish to serve on the ELC Once the new ELC is elected they will formalize their structure and responsibilities and present to Eron lenders their plans for the coming year.

- For those attending the November 15th AGM, bringing the ballots to the AGM will be possible. A final count will be done by scrutineers before the end of the AGM, and the new ELC members will be announced.


21. Annual General Meeting -- The AGM will be held Sunday, November 15, 1998, at 12:00 noon at Kitsilano High School Auditorium, 2550 West 10th Avenue,Vancouver. Parking is free on the surrounding residential streets (except where restricted ) and in the staff parking lots on the East and West sides of the school. A donation of $2 per adult will be requested at the door to cover rental of the hall. *NOTE* : the address for Kitsilano Secondary School, where the Annual General Meeting will be held, was stated incorrectly [2250] in the covering letter of the recent all-lenders mailing. Signs will be posted at the 2250 address to inform lenders to proceed several blocks further West to 2550. All lenders who receive this newsletter before the 15th of Nov., please call other lenders you know to inform them of this correctoin. And ask them , in turn, to also make a call, and so onÖ.Thankyou. The Oct.6 newsletter does state the correct address.


22. Postal Communication --An all-lenders mailing was sent October 27 enclosing the ballot for ELC elections along with the AGM notice.


23. Calendar/Schedule -- An updated calendar is posted on the website. Please contact Steve Ripley with suggestions for items to be included: tel #222-2646, fax #222-1641, email: sripley@imag.net


24. Newsletter-- This newsletter is the production of the ELC and volunteer committee members. It will be posted on the website without editing by PWC or R&D, who take no responsibility for its contents. Any Eron lender who wishes to suggest ideas or contribute to the preparation of the newsletter is invited to contact Steve Ripley.


25. Minutes -- Minutes of the monthly ELC-Project Leaders meetings are available to all Eron lenders. For a copy please fax Steve Ripley 222-1641 or find them posted on the website. Volunteer recorder and typist of minutes is D'Ann Madsen.


26. Meetings

- December 1, 1998, Tuesday at 7pm
ELC-Project Leaders Meeting, Legion Hall,
4356 East Hastings St., Burnaby.
For further information regarding project leaders
meetings, contact Martje Hartmann, tel #538-6601.




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