Exhibit 99.1





                                October 28, 2001


To the Board of Directors of
Fog Cutter Capital Group Inc.
1410 SW Jefferson Street
Portland, OR 97201

       Re: Letter of Resignation
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       I hereby resign as a member of the Board of Directors of Fog Cutter
Capital Group Inc. (the "COMPANY"), as a member of the Board of Directors of all
subsidiaries of the Company on which I serve, and any committees of the Company
on which I serve, effective immediately in each case.

       I feel that my participation over the last three years has helped the
Company survive some difficult economic circumstances. Knowing that things have
now stabilized, that the Company is now poised to fully implement its Strategic
Plan, unanimously approved earlier this year, and that the Company is again
paying dividends leaves me feeling comfortable handing my board responsibility
over to the 2002 incoming Board of Directors. While other business matters
require attention, my family and I continue to be significant stockholders and
look forward to seeing shareholder value further increase.

                                              Sincerely,

                                                 /s/ Pat Terrell
                                              ---------------------
                                                   Pat Terrell