The Bermuda-based IPOC International Growth Fund — which is facing a winding up order from Finance Minister Paula Cox — has been dealt another legal blow in a case in Switzerland.

The Swiss Federal Tribunal has ruled that IPOC does not have ownership rights to a long-disputed 19.4 percent stake in Russian telecommunications giant MegaFon.

IPOC was appealing an earlier ruling by the International Court of Arbitration of the International Chamber of Commerce in Zurich, which also rejected the Fund's claim to the stake.

And, according to the former owners of the stake, LV Finance, IPOC is unable to appeal further.

The court ordered IPOC to pay court costs of 80,000 Swiss francs ($65,680) and compensation costs to LV Finance of 100,000 Swiss francs ($82,112).

In May 2006, the Zurich tribunal identified Russian IT and Telecommunications Minister Leonid Reiman (pictured) as the beneficiary owner of IPOC — though Mr. Reiman has denied this — referring to him throughout as Witness No. 7. Danish lawyer Jeffrey Galmond has consistently said he is the sole beneficial owner.

And the three-member panel tribunal's decision in May last year also clearly stated its opinion that the money in the Bermuda fund included the laundered proceeds of crime. The tribunal said Mr. Reiman, a close ally of Russian President Vladimir Putin, used his position in public office to amass great personal wealth, which was held in the IPOC Fund.

Ms Cox said three weeks ago that the Government, through the Registrar of Companies, would ask the Supreme Court to wind up IPOC and eight related companies. The petition for a winding-up will be held in a closed hearing on April 27.

The Minister said it was sometimes necessary to take legal action "to address seeming breaches of our laws and apparent regulatory infractions".

Some matters relating to the case have been passed on to the Bermuda Police Service for investigation.

IPOC has been fighting for four years in courtrooms in the Bahamas, the British Virgin Islands and Switzerland, over a 25.1 percent in MegaFon, Russia's third largest mobile operator.

The dispute started when Russia's Alfa Group bought CT-Mobile from LV Finance. CT-Mobile holds the 25.1 percent stake in MegaFon.

IPOC claimed it had a pre-emptive right to buy the stake from LV Finance and in 2004 a Geneva court upheld the Fund's claim on a 5.575 percent stake in MegaFon. IPOC has been fighting for the remaining 19.4 percent stake in the Russian company ever since.