with Sidley Austin and David Emerson, senior consultant for CAI hedge
fund, are using blackmail to recover loans from debtors in P3s
Liberal loan sharks in Emerson hedge fund
May 11, 2009
BC Reform believes that `Liberal' loan sharks associated with
the Sidley Austin law firm and David Emerson, the senior consultant for
the CAI hedge fund, are using blackmail and/or threats of violence to
recover loans from distressed debtors in public private partnerships.
1. During the `90s, Steve Hollett, Assistant Deputy Minister in the
B.C. Ministry of Finance, and CAI co-investors Larry Bell and Mohammed
al-Zaibak, began using the BC OnLine land registry system to recover
loans from P3s such as the civilian and military intelligence networks
developed by Macdonald Dettwiler and Associates (`MDA').
2. After 9/11, CAI investors used MDA's Entrust, AeroSat and MindBox
intelligence networks to recover loans through a bogus
`double-occurrence' insurance claim filed after the collapse of
the World Trade Center Twin Towers.
3. In March 2005, Peter Restler, CAI's U.S. managing partner had
dinner in New York with Premier Gordon Campbell, his press secretary,
Mike Morton, and Larry Blain CEO of Partnerships BC, allegedly to
arrange P3 loan finance for 2010 Olympic Projects.
4. In 2007, CAI arranged for Sidley to represent the underwriters in
Fortress Investment Group's $634.3 million initial public offering used
to finance the Olympic Village. Soon after Peter Ladner was accused of
leaking details of Sidley's allegedly extortionate loan conditions,
his sister Wendy Ladner Beaudry was murdered in the Pacific Spirit Park.
5. In November 2007, CAI extorted terrified (?) government leaders to
allow its investors to evade the tax on income trust distribution with a
take-private transaction of the CCS Income Trust valued at approximately
$3.5 billion and co-led by CAI with Goldman Sachs, B.C. Investment
Management Corporation, unnamed CAI partners and CIBC.
6. In May 2009, CAI traded an extension on Canwest debt payments for an editorial `puff' piece published in Canwest's Vancouver Sun on May 8, 2009 which suggested that the Campbell Liberals have earned a right to a third term of office in British Columbia.
Such a promotional piece without authorization by a financial agent
appears to violate Elections BC guidelines of section 228 which defines
"an advertising message that promotes or opposes, directly or
indirectly, a registered political party or the election of a candidate
but does not include the publication without charge [our emphasis] of
news, an editorial, an interview, a column, a letter, a debate, a speech
or a commentary in a bona fide periodical or a radio or television
The extension of the Canwest debt schedule in exchange for an
advertising message to promote a third term for the BC Liberals, is
clearly a political favor to/by CAI investors, including Frank McKenna,
a Canwest director then interim chairman from 1999 to 2005.
Reform will protect provincial public servants from loan sharking by
recovering custody of public equity in BC Investment Management
Corporation (bcIMC), the public sector pension fund with access to BC
Online land-title and personal property registries.