According to a Kangaroo Court, the Stelco shareholders will now lose every dime they have invested. A billion dollar fraud will now be complete.

Judge Farley's ruling was a rush to judgment, done on a Saturday prior to Monday's federal election where his Liberal friends would have lost. Apparently there is no over-riding authority. As a consequence, I am more than upset by this.

To say that corruption at Stelco is the reason for me deciding to leave Canada for greener pastures ("the sun, sand & sea") is not correct so I changed the headline. But I am extremely upset nonetheless.

Am I surprised Farley issued his ruling in a hand-written statement? No; I am only surprised it didn't come in on Brascan stationery or cocktail napkin from their champagne party.

Do you know there is no new equity capital for Stelco? In return for re-arranging Stelco's asset-backed loans that any legitimate corporate finance department could have arranged in 90 days, the new so-called private equity players had the judge strike out 100-percent of the "old" shares and issue new shares to his friends.

That's right; no new equity for Stelco.

This decision proves that the Mom & Pop owners of capital have no chance. It shows how rich people become richer. They do it one theft at a time.

By writing about Stelco to the extent I did, you might say I was making my bed. My fate in this Banana Republic is now probably sealed. I hope there is an immediate appeal, and lawsuits against all these perpetrators, including the judge, by somebody, but I will be moving on. As you know I have been in the process of deciding to depart the country in 2006 to gain permanent residency and tax status elsewhere.

I have had enough. Kaput. Fini.

I have to admit that the hypocrisy in Canada reeks to the extent that the saying "Love it or leave it" applies to me. You see, I am a person of principle -- unlike others in this country. A single corrupt judge, plus the stink of a two-year engineered fraud, has made my decision easier.

Many readers have come to understand my values, which probably explains the popularity of this blog. At the end of the day, money does not matter to me. I care only about principles, and value add, and the rights of individuals, including capital owners. I have lived my entire life that way. I am not going to change.

From this life, I have never asked for a single thing for myself. Whatever came to me in a material way was not gifted or stolen. I earned it. And I then gave it back to society.

That's why today I blog totally free. Take it or leave it.

For years I cared only about a single thing in my entire life, which is that my parents and my family be proud of my accomplishments. And they were. My parents, as you know, passed away on consecutive days a few months ago, together until the end.

And my Dad, who taught me the joys of trading, cared about Stelco, whereas for many years I did not. Not in the least. To me, Stelco was simply a badly managed steel company located close to my home town, in a city where I went to school.

And now the managers, who even Farley referred to as the helmsmen of a "wobbly" company, are going to receive bonuses and equity, and the legal agreements these people made in the past are cancelled by the hand-writing of this solitary judge. There was not even a formal court process with transcriptions and the usual processes; there was an informal hearing among lawyers whom this judge has been on the speaker circuit showing how to use his courtroom to accomplish such a result.

I'm not making this up.

Believe me when I say I have no financial interest in Stelco other than a belief that it represents a line in the sand with respect to integrity of capital markets in this country, and for that reason over 18 months I have been fighting for the rights of the owners of capital here and elsewhere.

This weekend's decision regarding Stelco, and the resounding silence from authorities here, shows there is very little integrity in Canadian capital markets.

Moms and pops have no hope. None whatsoever. I am sorry I let you down. But I am not alone.

When I ventured into this Kangaroo Court last week, I heard people asking where were the securities commission lawyers. Perhaps the firms who provide staff to the OSC were all on the service record, with an axe to grind? There were, after all, 39 law firms at work.

And not once in two years did a securities commissioner of any Provincial securities commission, or any politician, stand up and acknowledge the many complaint letters from the owners of capital and workers alike who were being defrauded by the Stelco team. And in a civil society that's not right. The ruling of this judge is not right.

Hours before the judge made his decision, readers should know I received a phone call from a very reputable financial person to say that Stelco shareholders were filing affidavits purporting foreign investors and bankers ready to restructure Stelco. Of that I had no doubt, but I said to this person, and I quote: "My only worry is that this judge makes his decision a couple hours before a new government will be elected and call for an inquiry" and he said to me "I don't think the judge is honest. Otherwise, I don't know why he's doing what he's doing. But maybe he's not stupid."

Unfortunately stupidity is not the issue. It's corruption and a corrupt system. And nobody in authority willing to change it.

There you have it. I'm disappointed, but not surprised.

I have known for many years that the court system and political system in this country is as corrupt as any other, and I truly mean any other. But I did think that some higher authority might whisper in this particular judge's ear that it's best to leave this matter to the capital markets, or to the new federal government to decide upon.

I guess he'll enjoy the benefits. A billion dollars can stretch a long way.

The news headline will read: "No buyer wants bankrupt Stelco." But I can assure you there are potential buyers ready to bid on Stelco. It is worth, gross, about three billion dollars.

My personal fate is now sealed, but, with this one judge's decision, in many ways so too is Canada's.

I can assure you that as long as I choose to air an opinion, about whatever, from wherever, you will not have heard the end of this matter from me. But for now I really have to decide how much longer I want to write this blog. It's not easy to do it, hour after hour, day after day.

It's a lot easier, I believe, to steal a billion dollars.

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1:20 pm ET update:

I received the following mail today. Time is rather short since I just returned home and now will be off to the Boat Show. If you happen to meet the description provided, and care enough to speak up for your losses to the hands of a Kangaroo Court, please follow up directly. This is an appalling situation that is affecting, in addition to all shareholders, the bondholders and creditors, employees and past employees who thought their pensions would be protected. The City of Hamilton stands to be the loser when the private equity bandits move the mill out of town.

This complaint will only stay alive through an Appeals process if people like you care enough.

When you know you are in the right, then 39 law firms and a judge should not stop you from showing outrage. We have civil obedience in this country because of our belief in the rule of law. But the charade this solitary judge has just permitted in his courtroom for two years is not acceptable. If you wish to rant, like me today, please append your comments below. Just maybe we'll find somebody in authority in this country to step to the plate for the Little People.

Here is the letter I received from the local TV station in Hamilton:

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"Hello, Bill:

I'm looking to do a story on Stelco shareholders that are losing on the
restructuring plan. Not the big guys, just your 'average joe' that decided
to invest and now will be left with nothing. Hoping to find a possible
contact (shareholder affected by decision) to do a story tonight.

Please contact me at the following:

905-522-1101 ext. 2267 or 905-645-2011 (Assignment Desk will answer)

Thank you,

Sharon"
shmcculloch@chtv.ca
http://www.canada.com/chtv/index.html

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