Melnyk in a bit of trouble
 

Came across this in Thoroughbred Times.

http://www.thoroughbredtimes.com/nat...C-charges.aspx

Shocking.

speaking of court cases, anyone see that stonewall stallions is involved in yet another lawsuit?? seems they quit paying the money towards the purchase of It's No Joke.

This seems to be a recurring story of sorts with Biovail, I was interested in their stock a year and a half or 2 years ago but found some of their accounting practices abit fishy so I passed, passing on them was the prudent thing to do.

While the charges might be new, the topic is nothing new at all. Also what's not new was a PR smear campaign against Melnyk and Biovail from years ago. That story was the subject of a 60 Minutes piece where Melnyk was interviewed at length about all of the allegations, potential charges, etc.

I am not sure if the two were/are related. As far as the offshore trusts, that's nothing out of the ordinary. Melnyk is not a US or Canadian citizen and offshore trusts are common in sophisticated estate planning. Of course it's not illegal to have those, but illegal to not abide with the proper laws about disclosure, filings, taxes, etc. I certainly don't know about the shareholder disclosure laws so that will have to go through the process and I am sure will play out accordingly.

Eric