An attorney for the Natural Gas Supply Association (NGSA)revealed Friday that the civil investigation into the allegedembezzlement activities of the group’s ousted president, NicholasJ. Bush, has spread to Canada.

During a status conference, Eugene M. Propper of the law firm ofHolland &amp Knight told D.C. Superior Court Judge Jose M. Lopez hehad been trying to serve party/parties in Canada in connection withthe civil lawsuit filed by NGSA last February, which accused Bushof stealing more than $2.4 million from the producer group since1987. He declined to identify the Canadian party/parties whenquestioned by reporters following the hearing.

A source confirmed that there was an on going investigation inCanada related to the case. The NGSA “has moved in that direction,”he said, adding there was a “high possibility” of a “tangentialrelationship” between Bush and the Canadian party/parties. He saidhe was unable to say whether the parties were individuals orcompanies, or even whether they were part of the natural gasindustry.

The Canadian angle came to light during NGSA’s three-month probeof Bush’s alleged fraud and embezzlement activities, which werefirst detected in January. The group is “following the money to seewhere the trail leads,” and is looking at “anyone within thecircle” of Bush’s colleagues, friends and family, the source said.

John Sharp, who has been handling NGSA’s day-to-day affairssince Bush’s departure, declined to provide any information on theCanadian investigation.

At the conference, Propper reported both sides were continuing”to talk to try to think of a way to settle” the lawsuit. But JudgeLopez expressed dissatisfaction with the slow progress of thenegotiations. “You keep talking” about a settlement, “but talkingis not enough,” he told Propper and William J. Murphy, a Baltimoreattorney representing Bush.

Lopez issued a “standard” scheduling order, which spelled outthe deadlines that both sides have to meet (for discovery and otheractions) and essentially put the case on track for trial. A trialdate has not been set yet.

The lawsuit accuses Bush of setting up bogus consultingcontracts during his tenure as NGSA president and diverting themoney that was earmarked for the phony consultants for his own use.The funds – only a fraction of which have been traced so far -primarily went to acquire Bush’s house in the Palisades section ofWashington, make mortgage payments, and pay off credit card andutility bills, according to the NGSA suit. The NGSA is seekingreimbursement of the missing $2.4 million and punitive damages of$5 million.

Until the case is resolved, the court has ordered several ofBush’s assets in the District of Columbia to be attached. His twohouses- in the Palisades section and the posh McLean, VA, area -are in the process of being sold, sources say.

In the meantime, the U.S. Attorney’s office in Washington D.C.is continuing its investigation into possible criminal chargesagainst Bush. Sources now predict that charges will be forthcomingwithin a month. “That’s probably not too far out of the realm,”said Channing Phillips, spokesman for the attorney’s office.

Criminal charges would likely stem from allegations that Bushcreated phony bank accounts and mailing addresses, and misused taxinformation and individuals’ social security numbers as part of thealleged fraud scheme. An investigation by the Internal RevenueService of Bush’s activities also is likely to occur, many believe.

Susan Parker

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