"There was no legitimate business purpose for the creation or use of these accounts," said KPMG in the suit, which asks for damages of C$25m. Accounts were set up in the Cayman Islands, the Turks and Caicos Islands, and in Switzerland.

Earlier this month, Manulife Securities, which had recommended Portus to investors (but later repaid the commissions it had received) said it was proceeding with a proposed class action against Société Générale, Société Générale (Canada), Lyxor Asset Management and Société Générale Securities Inc, which according to KPMG hold the bulk of the recoverable Portus assets.

Said Manulife: "This proceeding seeks damages from Société Générale based on the loss of invested capital as well as losses resulting from Portus Investors' inability to achieve a return on their investment due to the collapse of Portus. Any award of damages in the proposed class proceeding will go to benefit all Portus Investors. To the extent that the Estate of Portus makes distributions, the damages claimed through the proposed class proceeding will be reduced but not eliminated. Recovery of remaining damages will continue to be sought from Société Générale.

"In mid-2005, MSIL acted quickly to repay all of its own clients who were referred to Portus by MSIL. These clients were repaid 100% of the principal they invested with Portus by MSIL.

"From the outset, MSIL has committed to do the right thing for its clients and to do what it can to assist all Portus Investors in minimizing their losses from the unfortunate situation surrounding the collapse of Portus. No one other than Portus Investors should profit. MSIL will not profit from this action. To the extent that there is an ultimate net realization by MSIL greater than the principal amount invested by its clients, MSIL will credit its clients with this excess", said J-P. Bisnaire, Senior Executive Vice President, Business Development and General Counsel of Manulife Financial."

KPMG said last summer that about $662.15 million (Canadian) and about $37.2 million (US) of Portus assets had been found and secured in 130 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.