Capital Research Ltd.

Former hedge fund boss Michael Lauer's "girlfriends" and stock "valuation shills" are among the defendants in the latest lawsuit filed in Miami by the Receiver of the Lancer Offshore group. "Lauer would often use the Girlfriends to assist him in violating his duties to the Funds by placing valuable assets, including aircraft and cash, in their names in an effort to prevent investors and/or the SEC from seizing such assets," stated the complaint.

Bruce Cowen, who was a senior officer with the collapsed Lancer Offshore group, has pleaded guilty to fraud conspiracy in the United States.Cowen pleaded guilty to one count of conspiracy to commit securities fraud, mail fraud and wire fraud at the U. S. District Court for the Southern District of Florida on August 21, 2003.

Lancer Offshore Inc., which is registered in the British Virgin Islands and listed on the Irish Stock Exchange, has brought a libel lawsuit against the New York Post - one month after notifying investors it was effectively suspending cash redemptions. The libel action was filed at New York State Supreme Court on February 14, 2003 after the Post published three negative articles about the Fund, which purports to have assets valued at $1 billion, and/or its principal, Michael Lauer.