Darryl Montgomery knows loans!

Good Day Folks,

On August 20, 2004 Winnipeg and Manitoba Metis Federation law firm Duboff Edwards Haight & Schachter filed a Statement of Claim against Darryl Douglas Montgomery and others regarding a loan he had received while an MMF Director from the "supposedly" arms-length affiliate The Louis Riel Capital Corporation. Court records show 3 Notices of Garnishment were subsequently issued against the parties to the transaction.

It raises the question whether Mr. Montgomery's involvement constituted a conflict of interest. The Statement of Claim and Garnishment Notices were filed with the Queen's Bench Registry making them public domain.

Mr. Montgomery ceased being an MMF Director effective June 29, 2006 the date of the last Federation election. We do not know if he ran and was defeated or chose not to be a candidate for whatever reason(s). He remains a plaintiff in the taxpayer financed Manitoba Metis Federation's alleged defamation lawsuit against the now defunct www.CyberSmokeSignals.com. Presumably his legal fees continue to be paid from public monies.

Sincerely,
Clare L. Pieuk
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File No. CI 04-01-39016
THE QUEEN'S BENCH
WINNIPEG CENTRE

BETWEEN:

LOUIS RIEL CAPITAL CORPORATION
plaintiff,

-and -

DARRYL DOUGLAS MONTGOMERY, JENNIFER ALYNE MONTGOMERY and MATTHEW ALVIN BUSHBY
defendants
___________________________________
STATEMENT OF CLAIM
___________________________________

DUBOFF EDWARDS HAIGHT & SCHACHTER
Barristers and Solicitors
1900 - 155 Carlton Street
Winnipeg MB R3C 3H8

WILLIAM G. HAIGHT
Phone: (204) 942-3361
File No. 950033-2501

CLAIM

1. The plaintiff claims from the defendants, jointly and severally:

a) judgment in the amount of $61, 756.86;

b) interest on the amount claimed in sub paragraph (s) at the rate of 10.25% per annum from August 6, 2004, until the date of judgment or payment;

c) costs on a solicitor and client basis; and

d) such further relief as the nature of this action requires and as to this Honourable Court may seem just.

2. The plaintiff, Louis Riel Capital Corporation ("Louis Riel") is a company incorporated pursuant to the laws of the Province of Manitoba and carries on business in Manitoba with head offices at 340-150 Henry Avenue, Winnipeg, Manitoba.

3. The defendants Darryl Douglas Montgomery and Jennifer Alyne Montgomery are individuals who reside in the City of Thompson, in the Province of Manitoba.

4. The defendant Matthew Alvin Bushby is an individual who resides in the Town of South Indian Lake, in the Province of Manitoba.

5. On or about September 12, 2001, the defendants, for valuable consideration, jointly and severally guaranteed payment on demand to Louis Riel of all debts and liabilities, present or future, direct or indirect, absolute or contingent, matured or not, at any time owing by Mistinipi Ventures Ltd. to Louis Riel. (the "Guarantee")

6. The terms of the Guarantee included the following:

a) the defendants agreed that their liability to Louis Riel was unlimited;

b) the defendants agreed to pay to Louis Riel interest on any outstanding amounts at the rate of 10.25% per annum; and

c) the defendants agreed to pay to Louis Riel, all costs, including costs on a solicitor and client basis incurred by Louis Riel in enforcing payment in the event of any default.

7. Louis Riel has demanded that the defendants pay all amounts due to Louis Riel as a result of debts and liabilities owing by Mistinipi Ventures Ltd. As at August 6, 2004 the amounts outstanding by the defendants to Louis Riel was $61,756.86

8. Despite the demands of Louis Riel, the defendants have refused and neglected and continue to refuse and neglect to pay Louis Riel the amounts due under the Guarantee.

9. Louis Riel therefore seeks the relief set out in Paragraph 1 hereof.

Date: August 20, 2004

DUBOFF EDWARDS HAIGHT & SCHACHTER
Barristers and Solicitors
1900 - 155 Carlton Street
Winnipeg, MB R3C 3H8

WILLIAM G. HAIGHT
Phone: (204) 942-3361
Solicitors for the plaintiff