There are persons that argued that OLINT could never be a SCAM. They give basically three reasons.
The first one is, David Smith is Christian man who was a successful trader at Jamaica Money Market Brokers(JMMB). Secondly, the FOREX market is liquid, huge and lots of money to be made once you know what you are doing. The third argument is that no SCAM could survive the runs that Olint has had to deal with, first in March 2006 and then in Jan./Feb. 2008. Despite the alleged run in 2006, OLINT allegedly paid back investors all their money and survived. They also claimed that during the period OLINT could not take on new customers or money as it was prevented by doing so by the FSC.
Let us look at the facts of the third argument . Indeed Olint was issued Cease and Desist Order in March 2006. While it is not known if OLINT broke the law, it certainly circumvented the rule of law in order to continue operating. How did they do this?
Basically three ways:
a) OLINT TCI
Since the Cease and Desist was in the Jamaican jurisdiction, they moved offices overseas. First trying St. Kitts. finally settling in TCI and formed OLINT TCI. From what is understood all new ‘OLINT’ members are now OLINT TCI members. The FSC(in Jamaica) argues that although OLINT TCI is incorporated overseas the FSC has jurisdiction of securities dealings occurring inside Jamaica. Little by little Olint members have been converted to OLINT TCI members with OLINT in Jamaica left as “Customer Care”.
b) Feeder/Affiliate Clubs
There is the issue of feeder/affiliate clubs. These investment clubs are based in Jamaica, Caribbean, United States and worldwide. Here are a few(and there are possibly more), others might be able to add to this list or send us corrections. This setup allows for money to come from multiple locations and sources.
- Pro Capital Solutions/Prominent Capital Solutions
- TCI FX (now Lewfam?)
- FI Investments
- FX millionaire Club
- Willshaw Forex Club (St. Lucia)
- WealthBuilders Club (Jamaica)
- UWIN Antigua International Limited (Antigua)
- SGL Holdings (Grenada)
This is where individuals basically acting as mini-clubs investing new investors’ money via their own accounts.
Look at this quote, “The info will help me deal with the person who is investing on my behalf. You have given me more info than this guy ever did.” In effect the setup effectively allows OLINT to rotate the delays.
So the fact is there was always new money coming in, exactly what a PONZI needs to survive. The money NEVER STOPPED flowing but it might have slowed down. The Cease and Desist order did not affect OLINT too much. The NCB, OLINT court document demonstrates this. Rumours are that members are now being encouraged to open off-shore banking accounts. Olint now has a registered international business in Belize and also has a off-shore account in the Belize. Now OLINT could have started as a ‘legitimate’ FOREX operation but it could have gone bad.
So much for the claim that they survived runs , 70% March 2006 and 80% Jan/Feb 2008. They might be true but who knows how much money OLINT had or has under management. Those claims cannot be independently verified.