F1 Closes OLINT-traded Gold Fund

F1 Investments is explaining to customers that problems with David Smith Led OLINT has put their GOLD fund in jeopardy.  In a release to members they say that the Platinum fund is not in danger except for the problems that they are having with Ingrid Loiten led May Daisy. Please see the letter below.

July 25, 2008

Dear Valued Client

We would like to take this opportunity to thank you for your patience and understanding and seek to update you on the current status of affairs with regards to our Gold and Platinum Funds in light of recent developments which have occurred within the foreign exchange trading industry.

As you are aware our Gold Fund, as mentioned on the website, is traded by OLINT Corp. Limited (OLINT).

Mr. Smith sent out a communiqué on July14 & 18, 2008 and we wish to forward this to you, as this will have implications re your Gold Funds in trade.

We believe that due to investigations by various international authorities there may be a significant impact on OLINT’s ability to successfully trade this Fund and as such in order to protect the funds placed with OLINT we have decided to close this Fund and have requested that OLINT forward to us all monies due to date with a view to paying out our clients all amounts due for this Fund. It is our understanding that to date no legal action has been brought by the authorities against David Smith or OLINT nor has OLINT been ordered to cease its operation.

We have heard that the investigation, at this stage, is a fact-finding exercise on the part of the local authorities in the exploration of their mandate to stem the flow of financial crimes in the jurisdiction, however we believe that our decision to close the Gold Fund is necessary to mitigate any risk to client funds in light of these circumstances.

We are aware that possible consequences of this investigation could be the delay of these payments by OLINT and we are currently in dialogue with OLINT with a view to have payment made as soon as possible. A direct consequence will be the delays in fulfilling encashment requests for the Gold Fund.

We anticipate a resolution to this situation and will endeavour to keep you fully informed and pledge to address all relevant issues in a timely, effective and efficient manner as the situation unfolds; as we can only inform you of the facts as we receive them. As you are aware, this is beyond our control.

Our Platinum Fund continues to be traded by our traders with good results save and except for the sums placed with Ingrid Loiten of Maydaisy which we are endeavouring to recover through due process in the Courts of the United States of America.

We continue to monitor the events closely and commit to keeping you informed. We once again thank you for your understanding and wish to reassure you that your support
serves to encourage and strengthen our resolve to do whatever is necessary to ensure that our clients’ interests remain of paramount importance.

Please do not hesitate to give us a call for any queries you may have.

Yours sincerely,
F1 INVESTMENT INC.

Cash Plus Receiver Stays

Carlos Hill has failed to get the Supreme Court to overturn the decision to appoint the receiver/manager. Carlos Hill and his legal team had brought their case to court claiming that the receiver was wrongly appointed since the person who brought it request was not a company director and therefore not rightly empowered.

The matter was quickly ended as the liquidator, whose power under the law supersedes the owner, took over the proceedings and re-drew the claim. A liquidator was appointed on June 27, 2008 as a result of an court action brought by the Premier League Clubs Association(PLCA) in June 2008.

This latest turn of events clears the way for the co-interim recover/manager to present his report on the status of Cash Plus on August 8, 2008. It is hoped at that time the Receiver/Manager will be able to detail the amount of money available, what actions will be taken to recover funds and when investors will be able to get payments.

David Smith Sued

It was only time before it happened but now it has. The Jamaica Observer is reporting that at least two unhappy investors have opted to file lawsuits in the Supreme Court on Monday against OLINT’s Principal . The man citing “fraudulent representation” and are seeking a court order to traces Smith’s assets.

Those filing the suit and the money they are seeking to recover:

• Christopher Walker, medical practitioner, US $2.5 million plus interest.
• Micheal Belcher, businessman,  US $800,000 plus interest.

It should be noted that suits are against the principal of OLINT, David Smith and apparently not against OLINT. This might be a very important point as if OLINT is determined to be a PONZI and is placed into receivership, a lawsuit against OLINT might just be pointless but the legal minds can ponder that detail. 

Issues to consider 

At this time there are no criminal proceedings against David Smith but the following might be of interest. Attorney-at-law Shirley-Ann Eaton commenting on the Cash Pus lawsuits said it won’t bring any relief and thinks it makes no sense, especially with criminal action pending. She also argues that there is the issue of proceeds of crime, and that those proceeds could actually end up in the hands of the state. 

David Smith moved his operations to the Turks and Caicos in 2006 after battles with the FSC saw them issue a Cease and Desist order that order OLINT and LEWFAM to stop accepting new depositors. In December 2007 the joint appeal by LEWFAM and OLINT against the Cease and Desist was denied. OLINT suit against the FSC remains in the courts.

 OLINT has failed to pay the majority of its clients, interest since January 2008, a little after the collapse of Cash Plus, another UFO now acknowledge by many to have PONZI.

On June 26, F1 Investment, another UFO filed a  lawsuit in a Florida Court against May Daisy another troubled UFO.

Source: OLINT Boss Sued

Related:

• OLINT Crash: Real!
• Lawsuits against Cash Plus – Are they worth it?
• Possible Money Laundering Claims hit OLINT
• OLINT WOES hit investors in Grenada(with letter!)
• F1 Investments sues May Daisy, I-Trade et al