Superior Court Judge Jose Lopez has signed off on a “letterrogatory” that sets in motion the process for attorneys for theNatural Gas Supply Association (NGSA) to depose the former CanadianEmbassy aide who has been accused along with the group’s formerpresident, Nicholas Bush, of defrauding the association of millionsof dollars.

Margaret Elizabeth Martin, who was an “economics counselor” atthe embassy in Washington between 1990-1991 and was well known innatural gas circles, allegedly uncovered Bush’s embezzlementactivities while living with him for a short period after she leftthe embassy, but she agreed to keep silent about his actions inreturn for “certain purchases” made with the money he acquired fromthe fraud, according to amended court papers filed late last month.The purchases included a $250,000 summer home in Garden Island inBattersea, Ontario, and jewelry and a mink coat, the civil lawsuitsaid.

The NGSA action has charged Martin with five counts of fraud,including “aiding and abetting” Bush in his fraudulent activities,”unjust enrichment” and “civil conspiracy to defraud.” The producergroup seeks to recover $265,000 (cost of home and $15,000 inelectrical improvements) from Martin herself, plus $1 million inpunitive damages.

Martin currently is director of Canadian federal governmentrelations for TransCanada PipeLines Ltd. in Ottawa, and hasinformally denied the charges. She was supposed to submit a formalresponse to the NGSA charges last week in Superior Court but hadn’tdone so as of last Thursday. The NGSA hopes to “work something out”with Martin, but if negotiations don’t go well in the U.S. it couldbe forced to bring a lawsuit in Canada against her. “At some pointin time,” the association is looking to settle with Bush also, asource said.

Martin, who was traveling last week, could not be reached forcomment, but TransCanada spokesman Gary Davis told NGI the company”has every confidence in Margaret Martin,” and that the lawsuit wasnot distracting her from her job. “She’s hard at work, carrying outher responsibilities for the company.”

Since Martin is a Canadian resident and the property NGSA isseeking to encumber is located in Canada, NGSA was required to filefor the “letter rogatory,” which is a “formal, writtencommunication” from the Superior Court asking the Ontario Court ofJustice, General Division, in Ottawa for its “assistance in thetaking of evidence” in the case, specifically depositions and theproduction of documents.

Additionally, the NGSA is seeking to depose two Canadianattorneys, Oliver G. Prevost and Donald B. Good, who acted asagents when Martin acquired the Ontario house near her parents,according to the amended lawsuit.

The original lawsuit, which NGSA brought in late February,estimated that Bush misappropriated about $2.4 million over a12-year period from the producer group by setting up fraudulentconsulting contracts under the names of past acquaintances. Most ofthe contracts were in the name of James W. O. Rogers, who knew Bushbriefly in the 1980s but had no consulting relationship with NGSA.It’s now believed that Bush and his accused accomplice, Martin,took NGSA for a little more than $3 million, the lawsuit said. NGSAis seeking to recover the entire amount from the pair, plus $5million in punitive damages.

While the majority of the money reportedly was embezzled throughfraudulent consulting contracts ($2.8 million), Bush allegedly alsosubmitted fraudulent restaurant expenses, says the amended lawsuit.Between 1991-1998, the former NGSA president was reimbursed for$181,297 in expenses for business dinners at two posh D.C.restaurants – Lion D’Or and Germaine’s. After Bush was ousted,letterhead from the two restaurants was discovered in his desk atNGSA’s headquarters.

Furthermore, the NGSA uncovered another fraudulent consultingcontract – this one with the Duberstein Group in Washington D.C. InSeptember 1991, Bush directed NGSA to pay $60,000 to the company,which was never retained for consulting services. The moneyallegedly was pocketed by the former NGSA president, according tothe lawsuit.

On the criminal front, the U.S. Attorney’s Office in Washingtonis expected to bring criminal charges against Bush within the nextfew weeks. Separately, the NGSA reportedly has narrowed its choicesfor a successor to Bush down to three, and is expected to announcea new president within the month, according to sources.

Susan Parker

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