Worldwise Boss Noel Strachan under US Probe !!

Seems like the USA is turning up the heat on former Jamaican Ponzi scheme operators. The lastest such person who seems set to come under heat from the USA authorities is Noel Strachan, the former Worldwise Boss who ran off with millions on investors money and went on  buy spree in 2009 purchasing over J$1.8B  in properties in the Broward County area of the USA.

Included in this purchase was a mansion for US$1.8M along with a Rolls Royce Bentley.

Link:

http://jamaica-gleaner.com/gleaner/20110330/lead/lead7.html

Stunning new development in the Capital Blu Forex Case !!!

The prominent forensic accounting and consultancy firm Lewis B Freeman has been placed into receivership. So who is Lewis B Freeman.
This was the firm which was appointed receiver for Capital Blu Management, which is the Donavon Davis Jr. led forex trading outfit which ripped off its clients almost US$17M dollars.
The receiver in his last report in May 2009 had then indicated that it had only found approx. $500k and that a significant amount funds were spent on sleaze, booze, vacation and rental.

Lewis B freeman itself has now been placed into receivership as the authorities recently raided the firm trying to trace us$3.6m which is said to be held by the firm.
This is a stunning new development, and the question is can Capital Blu clients now throw in the towel at this stage.

Read more here.

http://www.law.com/jsp/article.jsp?id=1202434695199&pos=ataglance

Olint’s David Smith in Jail

There is news that David Smith is now in a TCI jail following being arrested again. It is understood that his wife was also arrested but release on bail.  It is understood that she is pregnant.

According to reports available the additional charges are in relation to the Management of OLINT TCI but no details were forthcoming from the Police.

This the latest twist in the David Smith and OLINT saga which sees OLINT having failed to pay Investors from at  least January 2008.  His offices and home was raided in the TCI in July 2008 and  funds held buy OLINT and  David Smith and Wife in the USA frozen that same month. He as then arrested and charged in February 2009 for fraud, uttering false documents and again in June 2009 on similar related charges.

The OLINT liquidator has effectively declared OLINT to have been a PONZI and have been asking the victims to come forward make state their claims.

The report is this time carried in on Radio Jamaica and  in the Jamaica Gleaner

• David Smith behind bars
• OLINT boss arrested

OLINT’s David Smith Arrested again

Investforlife can now confirm that David Smith of OLINT, OLINT TCI and TCI FX among others, has been arrested again. A source in the Turks and Caicos and more importantly the  Financial Crimes Unit has also confirmed the arrest.

We now understand that there are additional charges as outlined below.

• 1 count of Theft
• 1 count of Obtaining property by  deception
• 2 counts of Money Laundering

He was granted by in the sum of US$ 2 million.

Last week, an Liquidator to wind up  OLINT TCI was appointed.  An article appearing in the Jamaica Observer today indicated that David Smith apparent fears returning to Jamaica but it seems he is facing more legal troubles in the Turks and Caicos.

OLINT and its related companies has failed to pay investors since at least January 2008.  Many feeder clubs associated with OLINT have not paid either.

Source:

• Jamaican Olint boss arrested again (Gleaner/Power 106 FM)

David Smith may seek exile, fears for his safety

Lead principal of Olint David Smith who is under house arrest in the Turks & Caicos fears that if he were to return to Jamaica that the safety of both himself and his family would be placed in jeopardy and he has not dismissed the prospect of being a permanent exile.

http://www.jamaicaobserver.com/magazines/Business/html/20090612T040000-0500_153317_OBS_DAVID_SMITH_FEARS_FOR_HIS_SAFETY_IN_JAMAICA.asp

OLINT to be wound up

The  TCI Weekly News is reporting that OLINT TCI is to be wound up beginning Tuesday June 2, 2009.

David Smith home and offices were raid in July 2008 and assets frozen by the TCI Law enforcement.  Later that month, OLINT and David Smith’s accounts in the USA were frozen. In February  2009 he was charged by the TCI authorities for fraud and other theft related offences

The TCI weekly quotes, Justice Richard Williams as revealing that the Supreme Court in TCI had personally received “streams of correspondence” from anxious local investors.

“I feel terrible for them, it’s sad for all the people.” – Justice Richard Williams

The question then, is there enough money. According to the TCI weekly, Justice Williams is reported as saying the following:

“The amounts that the AG disclosed to me, there are not the amounts in that account to meet the amounts the creditors say they are owed.” … 

Appointment of Liquidator opposed

However, it is understood that OLINT through its directors David and Tracy Smith are apposing the appointment of a liquidator. In the Cash Plus case Carlos Hill seem originally alright with the receiver but later fought to have the receiver removed. Subsequently a liquidator was appointed in the Cash Plus case. It should be noted There is already a wind-up order in place for TCI FX trader, a TCI based company.

In general, since January 2008, investors in OLINT has not been paid interest and have been unable to have their principal repaid.

There are currently a number of lawsuits against OLINT in the TCI and in the USA. It is interesting what will become of those lawsuits now that the liquidator has been appointed, given the lessons learnt from Cash Plus and other failed PONZIs.

Source: 

• Olint TCI investors could be left penniless

Related:

• Lawsuits against Cash Plus – Are they worth it?
• Cash Plus Receiver Stays
• Olint Raided, Assets Frozen
• Possible Money Laundering Claims hit OLINT
• Olint’s David Smith arrested and charged for fraud

End of the Road for I-Trade FX

Is it the end of the road for I-Trade FX? It appears that way, if announcements seen and a notice posted on the website mean anything.

Forex Capital Markets LLC (www.fxcm.com) announced on May 4, 2009, it has reached an agreement to acquire the U.S. and international retail forex clients of i-Trade FX. Subject to regulatory approval, accounts are expected to be transferred from i-Trade FX to FXCM on May 8, 2009. source 

This source offers an explanation on what is happen although there could be more to this particular story.

Like several other forex firms, I-Trade FX has decided to cease offering service to US retail clients. Other firms that have decided to exit the U.S. retail business include ODL Securities, Hotspot FX, and CMC Markets. To offer retail forex trading services under NFA rules, Forex Dealer Members (FDMs) will be required to have a minimum of $20 Million in firm capital as of May 16, 2009. source 

I-Trade FX’s relationship with the David Smith/OLINT and the resulting problems with the the NFA has certainly not helped their cause. Last  month, the NFA fined I-Trade FX US $250,000.

Interestingly, the shut down appears to be affecting some non-us clients. One visitor to the blog from Australia commenting on the issue, said  that since May 8, 2009,  she has been unable to get access to her account and the lack of response from I-Trade has been a source of frustration. 

We would love to hear from I-Trade FX.  I-Trade FX customers would love to hear from you.

Sources:

• FXCM Acquires U.S. and International Clients of i-Trade FX 

 

 

Of interest:

• Forex Army Reviews (The reviews are interesting)
• FX Street Comment

NFA fines I Trade FX LLC $250,000

Investforlife has just received news earlier today that the NFA has imposed a US$250,000 fine on I Trade FX LLC for failing to implement a anti-money laundering program.

April 28, Chicago – National Futures Association (NFA) has fined I Trade FX LLC (I-Trade) $250,000 for failing to implement an adequate anti-money laundering (AML) program. I-Trade is a Futures Commission Merchant and Forex Dealer Member of NFA located in Lake Mary, Florida. I-Trade solely conducts retail, off-exchange forex business. The Decision, issued by an NFA Hearing Panel, is based on an NFA Complaint filed in June 2008

The Panel found that I-Trade failed to adequately implement its AML program by not filing a suspicious activity report (SAR), not investigating deposit and withdrawal activities of the accounts of two Jamaican investment clubs, Olint TCI and TCI FX, and not investigating the source of funds received from two of I-Trade’s customers.

See final judgement here at this link.

• http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1899

Related:

• Martinez’s (I-Trade) in Trouble with NFA – Ingrid Loiten, David Smith named
• NFA Hits I Trade FX – Another Look
• Possible Money Laundering Claims hit OLINT
• MTI says – Scams,Schemes, Scandals!