Another view from the outside looking in. Used by permission
The situation at Olint is deteriorating rapidly as David Smith has shuttered a local office in Jamaica that he says was the subject of a bomb threat while his fund suffers an apparent bank run. In a grim letter to shareholders Olint states:
These negative and speculative press reports have put a strain on the management of the fund and the fund has come under more and more scrutiny which has also itself been triggered by the increased encashment demands. The reckless and prejudicial use of National Futures Association (NFA) report which was not against us but only mentioned us en passant, while not providing any evidence whatsoever but speculation, caused, as if by well timed design, further pressure on the fund.
Jamaican News is keeping up with the story and Radio Jamaica states:
News of the worsening situation at OLINT comes two months after the company unveiled several changes to the way it does business with its clients which included restrictions on the frequency with which members can request payouts.
In addition, clients were told that they would face lengthy delays in getting back their funds.
David Smith is spinning hard but regardless, it appears that Olint is doomed. Again the question is will there be enough money to go around or was this a Ponzi scheme all along?
And if it was a Ponzi scheme did I Trade FX, where, according to the NFA, David Smith was once a leading principal, knowingly or unknowingly help facilitate it?
To their credit, I Trade FX has been desperately trying to shake this guy like a bad cold. But as Winston Churchill once said of Italy’s disastrous alliance with Germany during World War II, “How much easier is to join bad companions, than to shake them off…”
- Uused with permission.
n.b. This was written before Olint Assets were frozen in the Turks and Caicos