Another former Rampart Securities Inc. client is reporting that an internal investigation has revealed serious irregularities in its cash and investment accounts with Rampart.

Hucamp Mines joins SLMsoft.com in reporting that its Rampart accounts have problems. The irregularities, which were recently discovered by senior management following receipt of statements of account from Rampart’s bankruptcy trustee, involve the unauthorized transfer of approximately $2,284,000 from Hucamp’s accounts maintained at Rampart to unrelated accounts within Rampart. The second irregularity is the unauthorized delivery of guarantees in the name of Hucamp for unrelated accounts within Rampart.

Hucamp has notified the trustee that the statement of account does not properly reflect its cash and investment positions within Rampart and has demanded that the trustee reverse the unauthorized transfer.

It has also notified the trustee that the execution and delivery of any guarantees by Hucamp were not authorized by the directors of Hucamp. To date, Hucamp has not received a response from the trustee regarding the unauthorized guarantees and the unauthorized transfer and has been unable to ascertain when its cash and investments will be released.

On Aug. 14, 2001, the Investment Dealers Association and the Ontario Securities Commission suspended the registration of Rampart and froze all of its clients’ accounts. On Oct. 24, 2001, the Ontario Superior Court issued a receiving order placing Rampart into bankruptcy, at the request of the Canadian Investor Protection Fund, and appointed Ernst & Young Inc. as trustee in bankruptcy.

Huamp says it intends to take necessary steps to have its cash and investments released as soon as possible, including legal proceedings. The company is uncertain as to the losses, if any, that it will suffer.