PFA Assurance Group, Ltd. Placed In Joint Provisional Liquidation

The Cayman Islands Monetary Authority (“the Authority”) wishes to advise the public that on 19th September 2005, Messrs. Kenneth M. Krys and Christopher Stride, Partners of RSM Cayman Islands, were appointed as Joint Provisional Liquidators (“JPLs”) of PFA Assurance Group, Ltd. (“PFA” or “the Company”). The primary duties of the JPLs are to locate, protect, secure and take into their possession and control all assets, books, papers and records to which the Company is or appears to be entitled.

The Authority began investigating PFA on 31st March 2005 after learning that the directors of PFA, Messrs. Luis Manuel Cornide and Robert Anthony de la Riva had been charged by the United States Securities and Exchange Commission (“the SEC”) on 29th March 2005 with running a sham program to enrich themselves. Further enquiries revealed that the SEC filed an emergency civil action on 28th March 2005 to halt an ongoing offering fraud that targeted Latin American investors and, that on the same date, the United States District Court for the Southern District of Florida issued temporary restraining orders, asset freezes and other relief, including the appointment of a receiver over various entities controlled or affiliated with Messrs Cornide and de la Riva, including PFA.

After conducting its own investigations into PFA, the Authority exercised its powers under Section 13(1)(vii) of the Insurance Law (2004 Revision) and resolved to appoint a person to assume control of the affairs of the Company. On 19th April 2005 Messrs. Kenneth M. Krys and Christopher Stride were appointed to assume control of the affairs of PFA (“the Controllers”). In the Controllers’ Interim Report dated 20th May 2005, they advised the Authority that they were of the view that the Company is not in a position to continue as a going concern and recommended that the Authority file a petition to wind up the affairs of the Company.

Contact details for the JPLs are as follows:

Mr. Alistair Weeks
RSM Cayman Islands
P.O. Box 1370 GT
Telephone: 345-949-7100 x236
Facsimile: 345-949-7120
Email: Alistair.Weeks@rsmi.co.uk