OT
Int'l Silver's Perrett sued for loaning money at 1,300%
2007-09-06 20:09 ET - Street Wire
by Stockwatch Business Reporter
Jon Perrett, a director of International Silver Ridge Resources Inc., and Eva Perrett are being sued by Gemini Explorations Ltd., a private company, over an allegedly exorbitant loan. According to a lawsuit made public in B.C. Supreme Court, Mr. and Ms. Perret loaned Gemini $100,000 (U.S.) at an effective interest rate of 1,300 per cent a year. Gemini wants the court to reduce the rate to 60 per cent, the legal maximum interest anyone is allowed to charge in Canada. International Silver Ridge, which is in cease trade purgatory, is not a party to the lawsuit.
On Nov. 3, 2003, the Perretts loaned Gemini $100,000 (U.S.). In return, Gemini issued the Perretts a promissory note due at the end of the month worth $200,000 (U.S.), and agreed to pay 5-per-cent interest. Gemini secured the loan by mortgaging a small office in downtown Vancouver.
Morgan Stewart, the sole director of Gemini, says he did not realize until recently that this arrangement charged a criminal rate of interest. Gemini is willing to pay 60-per-cent interest on the $100,000 (U.S.) for the month of November, 2003, which comes to $104,602 (U.S.), and 5-per-cent interest on that amount for the approximately 2.5 years the loan has been outstanding. This adds up to $124,204 (U.S.) -- a far cry from $200,000 (U.S.). Plaintiff Gemini has not repaid any part of the loan.
Patrick Holmes, the lawyer representing Gemini, refused to answer questions about the lawsuit. None of the allegations have been proven in court.