In total, excluding fees that have already been recovered, about $12 million in fees was paid out of funds invested in Portus to MFDA and IDA Ontario-registered dealers.

The regulators say they have already received indications from 28 dealers, representing more than 80% of fees paid out of funds invested in Portus to MFDA and IDA Ontario-registered dealers, that they are willing to accept the plan. Dealers have been asked to confirm by January 24, 2006 that they intend to comply with the request and repay investors by May 31, 2006 under oversight by the MFDA and the IDA.

This payment will be in addition to the money investors stand to recover from the insolvency proceedings being conducted by KPMG. The firm says that $662.15 million (Canadian) and about $37.2 million (US) have been found and secured in 130 Portus bank and investment accounts in Canada, the Turks and Caicos and the Cayman Islands, out of more than $800m that was collected by Portus. The majority of Portus assets remain tied up in notes issued by France's Société Générale which were purchased for $529m, and mature between 2008 and 2011.

Meanwhile, the net is tightening around Portus founder Boaz Manor, who fled to Israel last February. According to Israeli press reports, Judge Shmuel Baruch of Tel Aviv District Court gave Manor three days in December to deliver more than 100 diamonds worth $11.6m, allegedly bought with Portus funds, to KPMG, or face arrest.

However, after pleas from Manor, who says he doesn't have the stones, the judge held a closed hearing on 26th December at which Manor was questioned by lawyers. Last week Judge Baruch issued a further order, this time giving Manor seven days to produce the diamonds or face gaol.

KPMG says that it has obtained a lien on up to $20.7 million over Manor’s property in Israel, representing $3.1 million that Manor allegedly transferred to his lawyer and $17.6 million missing from Portus's funds. As to the diamonds, they may be in Hong Kong, where Manor's sister-in-law is under court pressure to reveal their whereabouts.

Manor also faces charges brought in Canada by the Ontario Securities Commission, which his Ontario lawyer says he will fight. Lawyer Brian Greenspan said: "He intends, obviously, to defend and respond to the charges and it's always been his intention to appear as required in answer to any charges that are brought against him."

The OSC says it is proceeding expeditiously with the administrative and court proceedings against Manor commenced in October last year. The next appearance with respect to the administrative proceeding commenced against Portus, Boaz Manor, Michael Mendelson, Michael Labanowich and John Ogg is scheduled to take place on January 17, 2006. With respect to the court proceeding against Boaz Manor, the next attendance in provincial court will take place on January 18, 2006.

The RCMP is also investigating the affair and may stand a better chance of attacking Manor under Federal laws - but they were very slow to begin investigations and there has been no news about their progress.