McLENNAN ROSS LLP / CUMING& GILLESPIEThis is to update you on developments since our April 26, 2006 update on the status of this litigation.As of this update, we do not have a decision from the Court with regard to the Certification of our action as a Class Action.We continue to work with counsel in the United States to have the HMS investor funds frozen in the First National Bank of San Diego transferred to the Alberta Courts.We are also working with counsel in Indiana to recover funds which were invested by Garth Bailey, and which we believe are HMS investor funds.On July 25, 2007 the Court approved our application for settlement with Garth S. Bailey, Garth S. Bailey Professional Corporation, Katherine Rodrigue-Bailey and her company Kirby Audit Services Inc. In summary, the terms of the Settlement are as follows:
- Judgment against Garth S. Bailey and Garth S. Bailey Professional Corporation for an amount to be determined;
- Garth S. Bailey and Garth S. Bailey Professional Corporation will disclose all trust records in their possession as they relate to the operation of the HMS Scheme to Plaintiff Class Counsel;
- Garth S. Bailey and Garth S. Bailey Professional Corporation shall provide full cooperation, without compensation, to the Plaintiffs with respect to the operation of HMS and related Defendant corporations, and with respect to any details regarding information as to the possible whereabouts of HMS investor funds;
- Payment of $27,504.00 by Katherine Rodrigue-Bailey and Kirby Audit Services Inc.
While the settlement amount may seem minimal, Mr. and Mrs. Bailey’s assets are minimal. The purpose of settlement with Mr. Bailey is to obtain his full co-operation in assisting us with pursuing other, more realistic avenues of recovery. Mr. Bailey has already sworn affidavits in support of our applications in San Diego and Indiana with respect to transferring investor funds to the Alberta Courts.Yours truly,Lynn Dechaine (for Graham McLennan)Paralegal – LitigationMcLennan Ross LLPToll Free: 1-800-567-9200Direct Line: (780) 482-9281Fax: (780) 482-9100Return to Blog