OLINT Responds to NFA complaints

Below is a response from Olint on the NFA matter…

Dear Club Members/Customers,

You may have seen Complaint NFA Case No. 08 BCC – 014 against I-Trade FX LLC and Isaac Martinez.

That complaint was filed against those entities/persons after an investigative report on I-Trade was submitted by the compliance department of the private body National Futures Association of which I Trade is a member.

David Smith and Olint is not the subject of the Complaint and is not the subject of the investigation.

We have sought and obtained legal advice in relation to the complaint so far as relevant in order to be able to clarify its terms for you. The clarification follows below:

1. The Complaint refers to and relies on the fact that [t]he Financial Services Commission (FSC) investigated Olint and Smith for allegedly offering illegal securities, and issued a cease and desist order in March 2006 that, among other, prevented Olint from accepting new members. The Jamaican Supreme Court upheld the FSC order in December 2007.

2. Following from the above the complaint continued, [b]ecause of concerns about Smith’s background and the source of funds he used to capitalise I-Trade…NFA commenced an investigation into I-Trade’s operations.

3. It is important to note that the complaint has failed to state that the Order of the Supreme Court is on Appeal.

4. The complaint has also failed to state that since its issue the Cease and Desist Order has not been in effect because at all material times to the date hereof it has been stayed by Order of the said Supreme Court of Jamaica. The latest stay has been granted pending the hearing of the Appeal.

5. To the extent that the complaint states that the investigations commenced out of concerns about Smith’s background and source of funds. It is important to note those concerns and the information about the source of funds are grounded in the same Judgment that is on appeal.

6. As it relates to the trading activities of David Smith. It should be clearly stated that Smith cannot trade on the I-Trade platform if he is a shareholder or otherwise has a close connection to the entity. It is not surprising therefore that there was no trading activity at the material time. His trading activity was and indeed took place on other platforms.

It is unfortunate that National Futures Association should mention the name of Smith and Olint in its complaint in the manner that it has and both parties have been advised to seek legal advice in the relevant jurisdiction as to what action if any can be taken to protect their respective reputations.

Club Member Care
For Olint TCI & David Smith

A full response to OLINT’s statement will be posted  but we can say that we find the statement very shallow as it fails to address the substantial matters raised. 

Update(July ,2008): Read our response:-  OLINT’S Hollow Response