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THE AGENCY Defending Principles of Truth & Fairness Mr. Gary Allen Sorenson Re: IFFL/Merendon Investors
Dear Mr. Sorenson: You are likely curious, and desire to know who we are and what we're all about. As an answer to that, we have explained what we are and how we operate in our About Us link. However, our identity and historical rendering is really of little consequence to you. You may be wondering why we have taken so long to make our first contact with you. I think it only fair to make known just a couple of these reasons and reveal their potential impact on you. Although, we should first make you aware that recent developments in the theatre have created a greater sense of urgency. And our hand has been forced to act sooner than we had initially intended. We believe that current ongoing investigations by the various law enforcement agencies are in their final stages and, in some cases, evidence and briefs have already been filed with the various Crown and United States DOJ offices. Credible sources have indicated that criminal indictments/charges could quite possibly be laid sooner than initially anticipated. The SGD (aka: BRA) requesting investors register and send $300 to you is a strong indication to us that you do not hold the same confidence and trust in the figures and values that were computed by Martin Werner in 2007 when the PB unit values were assigned. We do not believe that you will be able to determine the answers you claim to seek in a timely enough manner taking this route, especially given what we believe is a much more limited window of time. If you are genuinely committed to resolving and repaying the actual debt you owe we believe we have a solution that may relieve the necessity of the long administrative process, which you are pursuing. Allow me to make an assertion. We rely, operate and act on facts, not on people's passions or the excitement over the injustices done. Those facts, while often horrendous in many instances, must be evaluated objectively and without emotion. We rely on the real data and information compiled and reviewed. As you know, many of those involved in this story had money which they felt was owed to them. In the minds of many of the players the sum totaled in the hundreds of millions. In some cases our review shows a number of people are not owed one dime. Others invested their last penny of savings or retirement. While others invested in the “Dream” by borrowing money and mortgaging their homes based on their complete trust in you and the representations of your many marketers. We have reviewed videos of your discussions with investors that traveled to Honduras and paid close attention to what you represented to them. Structurists and investors then parroted these same representations in well-orchestrated presentations. Little did these tourists know that in many cases what they saw was nothing more than a meticulously staged 'show', the props and actors all in their places. Often times, a show performed with the smelting and pouring of the same gold over and over again. We have literally studied thousands of documents and gigabytes of data extracted from evidence. The goal of this bustle of activity is very simple--recover the funds wrongfully extracted from the victims. But to do that effectively we had to have a complete understanding of the facts. We have now acquired databases and tasked some of the best forensic analysts to process and compute real numbers. In the past, you have kept yourself informed as to the actual accounting of your companies. In this regard, I believe our findings should be of real interest to you. Subsequent to our preliminary forensic accounting process we now have those totals, totals that are based on the data that your own organization compiled. It is important to know that we do realize that there are different ways of calculating what people feel they are due, and we acknowledge that not all people who were assigned “PB units” had actually paid for them. Now that these processes are nearing completion we are in a position to enter into our “findings and initial contact” phase of the process. As a result of our extensive investigation, we could take reams of paper to explain, in quite vivid detail, how this very complex blueprint of conspiracy was actually crafted and executed. Fortunately for us, that time-exhaustive approach isn’t necessary as you and your co-conspirators know exactly how the web was weaved. In fact we must congratulate you as this particular case is one of the best we've seen, short of the Enron debacle and the most recent Madoff 'Ponzi' scheme. However, in order to demonstrate our understanding of the function and process, we will attempt a very simple historical rendition of your organization: (See our IFFL/Merendon Chronology link) In 1996 Merendon came into existence. Three years later a plan was born, it is likely, based on our research that the initial concept was to develop and pursue a legitimate business model of precious metals refining and development of mining operations utilizing private investor funding. Moving forward, a sophisticated web of domestic companies came into existence inter-related to IFFL and/or Milo Brost and numerous other players/accomplices acting as the sales and marketing arm for investment funding sources in support of the evolving Merendon Canada. This, in time, morphed into the various South American entities of today. (See a complete list of “Co-conspirators” and their respective rolls.) Under your influence, and the direction of Milo Brost, IFFL flourished. Investors were enticed and induced into placing their monies into a complex menagerie of “investment structures” that contained elements of both “onshore” and “offshore” products. The pitch to motivate the investors (victims) was straightforward; your foot soldiers, just as they had been trained promised victims unusually high returns and tax evading strategies not common among traditional investment vehicles. Investor funds from these domestic or “onshore” companies were then forwarded directly or indirectly to SGD, a company administered by various individuals with whom you had personal and/or professional relationships answering directly to you. In short, you, by way of your minions, controlled SGD. Ultimately a significant amount of the monies that were raised found their way to you (Merendon/Eiger) via “loans” made to you from SGD. Having said that, we are in no way implying that you are solely liable for all the monies extracted from the victims by IFFL/Brost and company. However, it is undeniably clear that, from an ethical standpoint, you bear some responsibility for the total wave of financial devastation that has followed. Through our intensive evaluation of the evidence we have concluded that Brost and company did their fair share of “skimming” and a certain amount of new investor money routed to SGD went back in the form of redemptions to other investors, et cetera—a process most often referred to by various justice departments as a 'Ponzi' scheme—was used to keep this illicitly lucrative machine running. The application was to keep selling to facilitate streams of new money coming in, the “cream” was then skimmed in order to pay outrageous salaries to those like Brost and family and of course cover admin costs and operational expenses. Then the remainder was routed to SGD, where folks like Werner and/or the President of the month (Adair et. al.) received their booty. What was left was either sent to Merendon (you) or utilized to cover the liability redemptions due to prior 'investors'. As time went on Brost became desperate, and in an attempt to bring in more money to cover the redemption liabilities legitimately owed by Merendon (but not being paid by Merendon), Brost began skimming more from investor money. To keep the whole façade alive, he used the funds to play the Nigerian Scam game and build new bogus endeavors such as MMNI etc which Merendon (you) now claim to disavow. To this end, we have come to understand that in total, investors contributed somewhere in the neighborhood of $371,000,000.00 (Three Hundred and Seventy One Million US Dollars) in “principle” on the front end of these investments, and our best estimated calculations to date is that Merendon/Eiger received approx. one half of those funds. This is based on the data we have come to posses, but the final most promising portion remains in the hands of our forensic analysts. Those figures will soon become available. Of course, not included in any of our estimates are the promised monthly returns of 3-4% compounded over time. Having that said, in December of 2004 you stated on video that Merendon’s liability to SGD was $200,000,000 (Two Hundred Million Dollars US). Then again more than a year later, in January of 2006 in front of a group of structurists at the Coast Plaza Hotel in Calgary, you stated and acknowledged to date you (Merendon) had received approx. $200,000,000.00 (Two Hundred Million Dollars US). Based on that number alone if the interest were compounded at 4% a month as promised your overall liability would be in the neighborhood of $1.8 Billion US. In September of 2008, to TMU you stated that Merendon had only received between $90-$100,000,000.00 (Ninety-One Hundred Million Dollars US). I believe you can comprehend the general idea we're attempting to portray. Somewhere within these statements are what you know to be truth and a reasonable figure that a foundation for a rational dialogue regarding settlement can be based. We could get into debating the original SGD security agreement that stipulates that all investments are secured by, “cash, raw gold, refined gold and gold concentrate,” which is inconsistent with the mysterious change of direction made in various videos and live presentations. Videos in which you indicate that those same investments evolved into being backed by the strange and elusive creature you refer to as “delineated reserves”. And finally, the investments' promised security became non-existent. Then,
YOUR most current puppet president of SGD/BRA indiscriminately forgives
your debt to the investors, transferring the total investment liability
into ownership shares of a mine in Peru with limited or quite possibly
no resources, while agreeing to pay you an additional $47,000,000.00
for the privilege. What an amazing deal! You (Merendon) sell SGD (what
amounts to nothing more than an empty hole in the ground) and walk away
with hundreds of millions of dollars of investor money in your pocket,
free and clear. I believe applause is in order, with all due respect;
Usted tiene las huevos de laton. What we are not sure of is that you truly understand your vulnerability in this whole scenario. By way of various channels, we now posses sufficient evidence to clearly demonstrate your culpability in this matter. This is the same evidence that both the US and Canadian justice entities have been seeking for quite some time. We stand in a position to facilitate the fulfillment of their need. We are quite able to connect all of the dots and provide the witness testimony and supporting documentation. This matter should be of concern as it is specifically noted in page “1” paragraph “3” of document circulated titled “Consulting Issues”, dated July 25, 2008, which you should be familiar:
The entire dissertation is included within the few example exhibits . As we are sure you are fully aware, many of your associates/legal advisers have been compromised and can easily be found “offside”. When things get hot you can rest assured that loyalty will only reach so far. The D.O.J. will or perhaps is likely working in concert with the Canadian Crown in pursuit of this matter. The folks closest to the primary target are often offered certain “advantages” and “consideration” should they choose to assist and “cooperate” in the final prosecutable resolution. Not even John Gotti could keep his minions from becoming the government’s “Canaries”. Those associates and close allies that form your inner web will likely find it most favorable to save themselves. What is most important for you to understand is exactly where we (The Agency) stand. First, it is not our mission’s primary objective to facilitate the criminal processes. Seeing you and/or any of your co-conspirators sent to prison solves nothing and brings little or no true restoration to the victims. In cases where the offending parties are unreasonable and there remains no alternative to justice, then we have no other course than to support the criminal process in any way we can. However, we do not believe that this is one of those cases or that you are one of the aforementioned. We want to extend to you the benefit of the doubt and believe that somewhere in your heart remains the ability to have sympathy and compassion for these victims. Some of them have suffered devastating consequences as a result of becoming involved with SGD/Merendon. In the most extreme cases a few people have been driven to taking their own lives, in fact we have been made aware of three such cases. In other cases elderly victims have lost everything and been driven from their homes. A few examples of actual stories of these tragedies are included in the “Victim Fallout” link on the home page of this website. Further, you must realize the emotional impact of some of these victims and their families. We have literally had to “stand in the gap” on your behalf. There are elements within or related to these victims that are emotionally desperate and willing to take whatever action they deem necessary to seek and execute whatever form of justice that they can. Understand that we DO NOT approve or condone such conduct or activities. But, we find that the threats may likely be real and with merit—something to which you should afford yourself an integral concern. In the eyes of your victims, you and Thelma live like a king and queen (a dogs life) in the “lap of luxury”. Your children, Christian, Hannany and Allena attend private schools and Oscar attends a prestigious university in Spain. The families that have been victimized are just like yours; only they have had to endure a suffering existence for you to reap your unjust reward. At the same moment these families continue to pay dearly while they observe you and your family hanging with the elite Hollywood movie and the “Eighth Wonder Entertainment” crowd; rubbing shoulders with the wealthy and politically connected. A “Bitter/Sweet” pill for the victims to swallow. You travel to distant shores, to your private villa in Barcelona, Spain, where Oscar attends the university, you hang out in a Penthouse suite in Miami, all of this on the backs and at the expense of these victims and their families. These people, some beyond the pain, are vengeful and full of what can only be described as righteous indignation. This matter, quite frankly, is of the proportions necessary to become an historic event. It is a rare but unrivaled force to wield as we are in a position of having been able to assemble such a large collective group driven by the same resolve and mindset, willing to move in force at our directive. As stated above our goal for this group with regards to you are resolution and restoration. We wish to be objective and fair with our recommendations should you be of a mindset to put aside pride and arrogance; allowing cool heads to prevail in the pursuit of honest and non-adversarial dialogue. Just as long as such dialogue leads to a real and constructive outcome and not more of the same empty promises and commitments of the past. If this is truly what is desired from your perspective, then we are in a position to possibly offer full settlement from the victims who are a part of the collective. You may also rest assured that you benefit from The Agency’s assessments of your actual financial obligation, and that it will be based on real numbers and data. Not some “pie in the sky” whimsy. We are aware of what your position on the matter has been in the past, so let’s cut through some of the common delusions and explain that we are not going to entertain the following excuses or responses:
This is very simply, and by any reasonable observation, untrue. This will not be an idea we will even begin to entertain.
While we are aware that Milo misappropriated some of the funds, the funds concerned amounted to a small percentage of what was collected in total. The rest went to your various interests or was utilized in the 'Ponzi' scheme to pay out redemptions, salaries and “retainers” etc.
This is equally unpersuasive and is unacceptable and a means to end any meaningful discussions of amicable resolution.
This is simply out of the question. If there is to be a face to face meeting it will be in a neutral location that all parties are comfortable with.
Unfortunately, trust is quite easily broken and an unavoidable byproduct of the mishandling of the trust the victims placed in your care. Let us be clear on this issue. Anyone who has been so treated would never enter into another agreement where the opportunity for recurrence of such malpractice may occur. The purpose of this first contact is to simply provide you a courtesy introduction, and is to communicate our true intentions. You are welcome to contact anyone involved that may have knowledge of us to confirm that we are the agency retained to act on behalf of the victims. We are here to open the door for honest dialogue with you, providing as painless a course towards resolution as possible. Our goal at the end of the day will be to cement a deal that will restore to some extent the majority of these victims. We already know that there is no way that money will repair all of the damage that has been done. Be sure to review the “Victim Fallout” link to see just a sampling of some of these tragic stories. Having said that, we know at this stage of the game money is the only thing that will provide some level of relief and help in getting these folks back on the right track. Let's also keep one thing foremost in mind; this money belongs to these victims. No one in this group is asking for a donation or charity. The money for which we act is the rightful property of the victims. Over the years, we have determined exactly what is needed to make things happen. Take the very recent Bernard Madoff case, while numerous complaints were lodged against this man for the better part of ten years. Nothing was done until the right people became involved. Now, evaluate the outcome. Take a close look at what has happened to this man. He lived for decades on the misappropriations of his victims and then nearly got away with this travesty of justice. His story has misled many to think they also will slip through the fingers of karma, case in point. We are explaining all of this in the hopes that you will not waste precious time and effort assembling a vast entourage of advisers and 'evidence' for a case that will ultimately prove quite unhelpful. Attempting to explain that, while you know how this money came to be in your possession, you should be allowed to keep it and we should go away will prove useless, as you can safely assume we are quite implacable once we have the facts. Individuals who have taken up such positions, like Mr. Madoff, have been forced, rather harshly, to see the error of their ways. In one of the latest editions of the Canadian “National Post” (previously supplied) front-page headlines, Madoff proclaims, “I live in a tormented state knowing the pain and suffering I have created…I am sorry”. In your case there is still the opportunity to look like the person who stepped up to the plate and did the right thing. After all, it is often not the mistakes we make which determine a man's reputation, but what he does to right his wrongs. It certainly puts a different view on a person’s life and legacy story. A marked improvement over ending up in rank with the likes of Kenneth Lay or Bernie Madoff, men who destroyed the lives of so many; who ultimately were sentenced to live out their remaining years behind bars, and whose legacy they pass on will not be one of riches and esteem, but of shame and disgrace. This case has one consistent similarity to these other cases. Thousands of people’s lives have been ruined. One man made that happen in the Madoff case. In this case one man stands in the position to either help or be forever viewed as the monster that devastated thousands of people. The ending of this story will be written by your own hand. Having said all of this, there is a grim reality; time is not your friend. We believe the justice departments of both the US and Canada are laboring in concert, knocking on doors and drawing nigh. At this point there remains but a small window of opportunity to right these wrongs and turn the tide before it’s too late. This does not have to become another Enron or Madoff story with a horrible ending, but it’s up to you and you must act NOW. Currently, you are still in the position to make this choice of your own free will. What do you think Mr. Madoff would do if he were offered the opportunity to jump in a time machine and go back a few years and was given a chance to read a letter like this? I know for a fact what choices he would make differently. You are at that point in time right now. No need for the time machine. You are here, the moment is now, the choice is yours to make. Life is often likened to a thin sheet of ice, extremely fragile to say the least. It has been The Agency that has held back the heat of late. Many of these families’ lives have been so torn apart with THEIR children being unable to pursue higher education and fulfill their life’s dreams and ambitions. All of this while they watch the dollars they invested in trust going to your various interests, your family and children (Jamie and Laura) having prospered. While many have desired to take matters into their own hands raining havoc down on you and your loved ones, they have conceded to us, agreeing to take this one remaining chance, allowing us an opportunity to step-up and attempt to handle this matter with you in a fair, discreet and amicable manner. Agency related investigators have compiled numerous statements and incriminating exhibits in this case. The case historical chronology, persons involved and the application of all have been documented from beginning to end. We are now at the crossroads and the time for a step in the right or wrong direction is at hand. If necessary, all of our accumulated conclusions and evidence can and will find its way into the hands of the appropriate jurisdictional authorities. With the support and cooperation of the nearly 3000 victims, this case will head in a direction with very unpleasant outcomes. And one issue that we haven’t even mentioned is the reality of the attention that this matter will bring upon your entire family if and when this story is exposed to the public and media. The collateral damage from that alone can be devastating, as we have seen in the past. At the risk of sounding redundant, its time to state one last time there is a very LIMITED window of opportunity. We don't do things timidly as I am sure you have concluded. We are suggesting that contact be made and the table opened to meaningful discussions. It’s time to demonstrate a willingness and courage to step forward and do what it takes to get this unpleasant, and unfortunate matter behind everyone. The door is being knocked upon, it’s up to you, Mr. Sorenson, to choose to open it and take the steps necessary with us to resolve and put an end to this nightmare that so many tormented parties endure daily. Truly, at some level you must count yourself and your family within that circle. We strongly encourage you to reach out while there is still time to take action to be on the right side of this. Please understand, sir, once this opportunity disappears there will never be a chance to turn back the clock. In
closing, we trust enough has been said and provided to bring you to
a logical conclusion on this journey. There are thousands of people
praying that you make the right choice in bringing this very unfortunate
set of circumstances to the best possible conclusion for
all parties concerned. There needs to be closure for all of these
victims’ lives. Only you stand in a position to make this happen. Sincerely, The AGENCY |