By John Lopez Mercury News Staff Writer TIBURON - It has been reported that property losses from the devastating explosion and fire on Angel Island have climbed to beyond the $40M mark. Along with the historic structure itself, hundreds of works of art, valuable antiques, archaeological treasures, and a rare library were lost. So unique was the collection that it was deemed uninsurable. It is as yet unknown how the loss of such assets will affect the continuation of the Luna Foundation as a viable philanthropic and business entity. Insurance Claims May Be Denied Since the explosion has been ruled to have been an act of suicide on the part of foundation chairman, Dr. Derek Rayne, claims on insured assets and property may be denied. Therefore, lengthy litigation is expected.

Cult Link Suspected It has been rumored that an increasingly popular theory amongst local police and the FBI is one that speculates that Dr. Rayne, who held Ph.D.s in theology and anthropology, was the leader of a cult that sought to hasten Armageddon. It is known that on more than one occasion Rayne involved himself in criminal and "scientific" investigations that concerned the paranormal and the occult. Bolstering such speculation is the presence of Fr. Joseph Thomas, a well known authority on religious and apocalyptic fringe groups. Fr. Thomas has in the past advised the FBI and Interpol on various cults throughout the world who believe that their actions can bring about the end of the world and the second coming of Christ. Such activities have been on a disturbing rise as the Millennium approaches.

Amongst the cases he has investigated are the Zodiac Killer and the People's Temple, both of which had links to the bay area, the Heaven's Gate mass suicide in San Diego County, the Solar Temple cult, which involved mass suicides in Switzerland and Montreal, and Aum Shiri Kyo, which released poisoned gas into the Tokyo subway system. In an odd turn of events, it has been reported that, because of his investigations here in the state of California, Fr. Thomas was acquainted with Dr. Rayne and may have stayed in the destroyed structure in the early 1980s. It is alleged that other upper echelon officials of the Luna Foundation have been questioned concerning their own and Dr. Rayne's activities. However, no further details are known.