Laserfiche WebLink
mom"-- U.S. Department of Justice <br />Environment and Natural Resources Division <br />Environmental Enforcement Section <br />999 18th Street <br />South Terrace, Suite 370 <br />Denver, CO 80202 <br />January 16, 2013 <br />VIA EMAIL AND OVERNIGHT MAIL <br />James King <br />Baker and Hostetler <br />303 170' Avenue, Suite 1100 <br />Denver CO 80203 <br />(303) 764 -4087 <br />Re: United States v. Federal Resources and Blum Trust <br />Dear Mr. King: <br />Paul Gormley <br />Direct (303) 844 -1379 <br />I understand from documents filed with the Colorado Division of Reclamation and <br />Mining that you represent Caldera Mineral Resources, LLC. This letter relates to your client's <br />involvement with the Camp Bird mine in Colorado. I learned this week that your client is in the <br />process of developing the Camp Bird mine, and apparently has some sort of option to purchase <br />the mine by March 19, 2013. Press reports also refer to a mortgage on the property held by your <br />client, and I have found documents at the Ouray County website relating to a $20,000,000 <br />revolving line of credit. <br />This letter is to inform your client that the United States has been pursuing litigation in <br />the United States District Court for the District of Idaho in which, among other things, the <br />United States has alleged that in March 2010 Federal Resources Corporation fraudulently <br />transferred its wholly owned subsidiary Camp Bird Colorado, Inc., the owner of the mine, to the <br />Blum Real Estate Trust. Federal Resources, the Blum Real Estate Trust, and Bentley J. Blum are <br />all defendants in that lawsuit. Counsel for the Trust, Mr. Blum and Federal Resources have been <br />unable to confirm for me whether your client is even aware of the United States' claims. <br />Therefore this letter is intended to notify your client of the United States' allegations that Camp <br />Bird Colorado, along with the mine, was fraudulently transferred under the Federal Debt <br />Collection Procedures Act. If your client purchases the mine, or further encumbers it, the United <br />States reserves the right to pursue all remedies available under the Federal Debt Collection <br />Procedures Act, or any other authorities, with regard to that property. <br />I should also mention that I intend to send a subpoena seeking documents and deposition <br />testimony from Caldera Resources. The focus of the document request and deposition will be on <br />