January 9, 2008 should have been a defining moment for the Olint faithful and the their leader David Smith. Instead the expected ruling was delayed until today January 12, 2008. What is not clear is how much difference a “postive ruling” by the judge in Turks and Caicos Islands will make.
How will the judge rule?
Although each case has to be taken on its merit, the Madoff case has highlighted the difficulties for investigators and regulators. The judge might be inclined to side with the prosecutors and give them more time. One of the problems is the Madoff case is that despite the fact that the some beleived the Madoff was doing something wrong the evidence was hard to, or just did not come by and just was not sufficient to make a case. Although it should not, the judge is human and Madoff’s case might just weigh heavily on his mind.
David Smith’s Problem
In addition, David Smith on the other had has a problem, Olint the alleged Forex Trading outfit, was NOT paying before his assets were frozen in July 2008. Indeed it was those complaints about lack of payment that partially or more than partially led to the actions of the Financial Crimes Unit in TCI. So the frozen assets did not bring a halt to payments as they had stopped a long time before that. Olint and David Smith are the subject of a Cease and Desist order by the FSC in Jamaica along with warnings issues by the regulator bodies in St. Kitts and Trinidad and Tobago.
Going back in history in May 2008, The David Smith led Olint had outlined an elaborate payment plan to start paying in June 2008. It was the failure of that plan get going along with the NFA investigation in I-Trade Fx, in which David Smith figured prominently, along with months of investigation in the TCI that led to the freeze in July 2008.
John Wildish, co-director in TCI FX believes that the TCI FX traders funds are safe according to a November 2009 interview with Wiv4 TV but he might be in for a rude awakening. He was unable to pay investors since June 2008 again before the freeze was in place.
It is for those reasons why the judge might just extend the freeze probably giving the police a deadline to make a case given the grave nature of the case.
Where and how much
If the judge opts to unfreeze the funds, the question is how much is really available? What about the funds in the USA. Even before the freeze David Smith kept saying “The broker has the money”. Does the broker still have the money and won’t release it?
If Olint was a Ponzi from the beginning or became a Ponzi how much money is really there? how many cents on the dollar? When will the receiver be called in?
While we ponder the what ifs, hows and whys, we now awaiting the latest ruling (or delay) by the TCI judge.
One things is sure there is a long list of anxious club owners and members waiting on a ‘postive word’ today.
- January 9th is here…
- Olint Raided, Assets Frozen
- MTI says – Scams,Schemes, Scandals!
- How OLINT survived?