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.”