Four companies whose bank accounts were frozen by the Supreme Court in September have filed suit against the online bank that deposited their money in an account at Bermuda Commercial Bank.

Lawyer Justin Williams filed the four separate writs against Horizon International Bank Limited on behalf of his clients Transworld Management Consultants Corporation, International Monetary Services Inc., Four Square Partners Inc. and FX Bridge Ltd.

His clients are among a total of 11 depositors who were affected on September 2 when Puisne Judge Ian Kawaley made an order to freeze more than $14 million held in a BCB account in the name of Horizon Bank International Limited.

Horizon Bank International Limited is a Caribbean offshore bank alleged to have committed a multi-million dollar fraud against two Canadian clients.

David Marchant's newsletter Offshore Alert reported earlier this year that the judge ordered the freeze after BCB filed an Interpleader complaint for relief after the Canadians and another set of the Internet bank's clients made conflicting requests concerning the account and threatened to hold BCB responsible if they suffered losses from BCB's actions.

According to Mr. Marchant's report, a civil lawsuit filed with the Ontario Superior Court of Justice saw Canadian residents Allen Walsh and Hans Taal claim they are the victims of a $20 million fraud “which appears to have been facilitated, inter alia, by HBI”. They asked BCB to freeze the account in the name of HBI “Ref: Extant Management Limited” in accordance with an asset freeze order issued that had already been issued by the Ontario Superior Court of Justice.

Mr. Marchant reports that Bahamas-based Britannia Group, represented by Trott and Duncan, then wrote to BCB on August 6, 2004 requesting the return of deposits totalling approximately $5 million, most of which is apparently held on behalf of Britannia's clients.”

The defendants in BCB's action include Horizon Bank International Limited, Britannia Group, FX Bridge Limited, Four Square Partners Inc., Slalom Investments Inc., Allen Walsh, and Hans Taal as well as two of Mr. Williams clients who have now launched action with the Bermuda Supreme Court - Transworld Management Consultants Inc. and International Monetary Service Inc.

On Friday, Mr. Williams told The Royal Gazette: “My clients have stated that all the customers want is their day in court so that they can establish their right to the monies they innocently deposited in the bank.”

Mr. Marchant reported earlier this year that Dominique Smith, BCB's senior vice president, stated in an August 17 affidavit that the ownership of HBI, which was formed in Antigua on April 25, 1995 and continued to St. Vincent and the Grenadines on September 14, 1999, was in dispute.

“The basis of BCB's application for relief by way of Interpleader is that BCB is under a liability in respect of money being held in various accounts in the name of the Defendant Horizon Bank International Limited, that it does not know who owns or controls HBI or is entitled to funds in its account, and that it expects to be sued by two or more persons making adverse claims thereto,” stated Smith.

Mr. Marchant reports that included in her affidavit are BCB records that pertain to the dispute over the beneficial ownership of HBI.

These include documents that support a link between HBI and Grosvenor Group Holdings Limited managing director Peter Dickson and president Gordon Howard to HBI. The men deny any current link to HBI.