The Bermuda Monetary Authority is remaining tight-lipped about its investigation of Bermuda-based IPOC International Growth Fund Limited.

The BMA launched the investigation of the company in the midst of a global legal battle between IPOC and BVI-based LV Finance, its chairman Leaned Rozehtskin and Alfa Group over a 25.1 percent stake in Russia?s third largest mobile phone operator Megafon. Alfa Group bought the stake of MegaFon from LV Finance in 2003, however IPOC claims it had signed option agreements to obtain that same stock from LV Finance back in 2001.

Witnesses for the Alfa Group have alleged in the courts that IPOC has links to money laundering. They have also brought into question IPOC?s claims that its primary beneficial owner is Jeffrey Galmond, a Danish lawyer and longstanding investor in the Russian telecomm sector. It has been widely alleged by IPOC?s courtroom opponents that the true beneficial owner is Russian Information Technology Minister Leonid Reiman. This is something Reiman and IPOC repeatedly deny.

BMA chief Cheryl Ann Lister was unable to comment on the Authority?s investigation of IPOC this week because it is a matter of policy not to comment on individual investigations.

A Financial Times report earlier this year said: ?One area they are understood to be focusing on is who the beneficial owners are of both IPOC and its sister funds.?

If anything untoward is found, the BMA has the power to close the fund down.

Meanwhile, IPOC has pledged to appeal a ruling by a Russian regional court this week which found that the MegaFon shareholders agreement conflicted with Russian Joint Stock Law.

In a press release, IPOC said the ruling sets a precedent which could see any such agreements challenged and overturned in Russian courts.

?Until now, the enforceability of shareholders agreements between foreign investors and Russian shareholders or a Russian company that is not governed by Russian law had been largely untested in Russia. This decision changes that,? the IPOC statement said, adding that the MegaFon shareholders? agreement, which is subject to Swedish Law, governs the relationships of the company?s major shareholders TeliaSonera Group, Telecominvest, CTMobile and IPOC and specifically prevents a competitor or indirect competitor such as Alfa from purchasing a stake in MegaFon.

Swiss arbitrations and related proceedings in British Virgin Islands continue on the matter. already has an eight percent stake in Megafon and is linked to another Megafon shareholder, Telecominvest (TCI), which has a further 31 percent. If wins its battle with Alfa, it and TCI?s stakes would total 62 percent.