Cosmos, an ambitious locally-registered company being run by two Americans with a controversial business past.

Inquiries are being initiated following recent revelations in The Royal Gazette about the company's principals, Dr. Gilbert Beinhocker and Mr. Gregory Plunkett.

The Boston-based financiers are alleged by several former business associates to have misappropriated large amounts of funds invested in other schemes they have run.

Finance Minister the Hon. David Saul said on Friday: "We will start asking some questions about this. We're going to make a few checks about this company to see if everything is all right.'' The first responsibility for vetting the principals of a company applying to incorporate in Bermuda lies with its corporate secretary which, in ARC's case, is local lawyer Mr. Perry Trott.

Mr. Trott would then furnish information to Bermuda Monetary Authority which would make whatever inquiries it felt necessary.

Mr. Trott will not discuss ARC with the Press and has referred all inquiries to Boston lawyer Mr. Morris Goldings, one of Dr. Beinhocker's many different lawyers in the United States.

Mr. Goldings did not return telephone messages left at his office last week.

None of ARC's officers appear willing to release details about the progress of the company, which was set up about six months ago to provide a satellite telecommunications network over the former Soviet Union.

One of the firm's two vice presidents, Mr. Gary Sharma, said he had been wanting "to get out of it for the last three months'', although he said this was purely because he did not have enough time to travel from the US to Bermuda and Russia.

Mr. Plunkett, who has previously declined several opportunities to comment, made contact with The Royal Gazette on Friday for the first time since the row flared up.

But his fax did not shed any light on various allegations made against him and Dr. Beinhocker, nor did it clear up any questions about ARC.

His fax stated: "It has recently come to my attention that you intend to print a follow-up article to your March 2, 1993, story in The Royal Gazette .

"I am sending via international courier our comments regarding your recent article. We would hope in the interest of fairness and truth you would read the statements and exhibits before publishing your follow-up story.

"You have been advised before that we shall take all legal recourse available to us. We reaffirm that position! We request that you review the materials being shipped to you prior to any further publication.'' The courier's package has not yet been received by The Royal Gazette .

ARC's assistant secretary, Boston lawyer Mr. Robert Trevisani, said he could not answer questions about ARC because: "I am not an executive officer of American Russian Cosmos nor am I aware of day to day developments.'' Mr. Trevisani, who was sent a copy of The Royal Gazette's story, said he had "no personal knowledge'' of Dr. Beinhocker and Mr. Plunkett's business past.

And he said he had "no knowledge'' of investor-initiated legal battles which Dr. Beinhocker and Mr. Plunkett have lost in recent years.

Mr. Trevisani dismissed some sceptics, including those in the local telecommunications industry, who have questioned the feasibility of a Beinhocker/Plunkett controlled ARC.

He said: "It does not surprise me that established large business enterprises scoff at embryonic ventures that seek to compete. Did not IBM scoff at Microsoft and Apple Computer?'' Mr. Trevisani said ARC executive vice president Mr. Tristan Del, who was instrumental in getting the Americans and Russians together, has a "continued high degree of optimism about ARC''.

If ARC goes through with its plan to use Bermuda to pick up satellite signals to distribute to the US, Canada, Central America, the Caribbean and other areas, it must legally invite Cable and Wireless to take part.

But Mr. David Escott, general manager of Cable and Wireless in Bermuda, said his firm has not been approached.

"It appears to me it would involve Cable and Wireless facilities and we would be involved with discussions at some time if it was to be a viable service,'' he said. "We've not been approached yet.

"If it involved bringing communications from outside Bermuda and then back out again then our licence would give us the opportunity to be involved and I would expect to be offered the involvement.''