A company owned mainly by former United Bermuda Party senator E.T. (Bob) Richards is one of two companies being sued in Canada for $1.5 million, The Royal Gazette has learnt.

Investor Andrew Pullan has began court action in Montreal against Mr.

Richard's company, Gulfstream Financial Ltd., and Canadian investment company, Levesque Beaubien Geoffrion.

Gulfstream is currently suing Levesque Beaubien in Canada, but Mr. Richards refused yesterday to disclose details of the case.

Mr. Pullan is claiming $1.5 million from both companies for an investment of just over $200,000 he says he has lost and "punitive damages for outrageous conduct''.

The writ states that in 1996, Mr. Pullan opened an investment account with Gulfstream at the invitation of its then managing director Carolyn Hall, and that day-to-day transactions would be handled by the Montreal representatives of Levesque Beaubien.

Referring to the legal action by Mr. Pullan, Mr. Richards said the case was directed against Levesque Beaubien, whom he says lost Mr. Pullan's money, and that he was confident of winning the case.

Mr. Pullan's writ at the Superior Court in Montreal alleges both Gulfstream and Levesque Beaubien failed in their obligations towards him and "treated him as though he was non-existent''.

It states that Mr. Pullan's investment account was working successfully and that despite withdrawing money, he had US $204,343 and Cnd $9,345 in June 1999.

The writ alleges that since then, he has had no control over his money.

It states: "Contrary to their obligations as agents and as prudent and diligent managers neither plaintiff (Gulfstream) nor defendant (Levesque Beaubien) has taken any action to protect Pullan's rights and interests.

"On the contrary, both plaintiff and defendant have acted negligently and in bad faith by only taking measures to protect their own respective interests to the expense of and without any consideration for Pullan's rights and interests.

"Both plaintiff and defendant have showed the highest disregards for Pullan, treating him as if he was non-existent and not as a human person to be informed and to have his rights protected by them.'' Gulfstream Financial announced last week that it was transferring its brokerage business amd clients brokerage to First Bermuda Financial Services.

Richards calls lawsuit `nefarious' Mr. Richards, chairman of Gulfstream, said all his clients' money would be safe with First Bermuda Financial Services and that they would not be affected by the court case in Canada.

He said: "We acted as a nominee for Pullan, that's how we got caught up in this. This action has no merit and none of our people were involved in it. His beef is with Levesque, who lost him his money, not us.

"Gulfstream will remain an entity so we can fight this action off. It is not as though the company is shutting down to avoid possible lawsuits.

"The transaction that has been announced by Gulfstream and First Bermuda has nothing to do with this.

"Our clients' interests and their assets will be safe in the hands of their new broker, First Bermuda.

"This (lawsuit) is an effort to be nefarious. Even if we had lost him the money, which we didn't, I don't see how he can claim $1.5 million.'' COURTS CTS