OLINT Crash – Email Very Genuine(with letter)

Speaking on OLINT’s behalf, Lord Anthony Gifford speaking on Nationwide  News Network, effectively confirms that the e-mail is genuine. After days of speculation of whether or not an e-mail was genuine, the answer is here. Anyone that listens objectively to this clip can draw their own conclusions. 

About 10 minutes and 40 second in the clip, the hosts asks the question about the disputed e-mail.  Lord Gifford claims he is not in a position to speak on the issue. Interestingly this is from Lord Gifford who is was speaking from Turks and Caicos where he and the other members of the high powered legal team are in consultation with David Smith.

Interestingly while Lord Gifford was on Nationwide, Jacqueline Samuels-Brown was on RJR.

Listen to the discussion: Lawyer’s statement

Source: Nationwide News Network

The letter


We have had full consultations with David and Tracey Smith and their local attorneys-at-law Barnett & Associates, during a visit to the Turks & Caicos Islands (TCI), following the restraint order obtained by the Attorney General of TCI on 11th July 2008, which has prevented them from using their assets in the TCI. They have authorised us to issue this statement.

We have recommended a process aimed at obtaining the discharge of the restraint order and securing the return of the computers and documents which were seized from them on 14th July 2008.

On 17th July 2008 the Supreme Court in TCI imposed a gag order preventing further disclosure of the restraint order proceedings, so that we are not at liberty to give details of this process.

We have also held consultations in relation to the general situation of David Smith, Olint and its members.

Olint and David Smith enjoyed an excellent reputation for fulfilling their obligations to their membership up to March 2006 when the Financial Services Commission (FSC), without warning, raided their offices, seized their electronic and other records, and issued a Cease and Desist Order against them.

These events caused Olint to be deprived of their records for a month, and at the same time there were multiple demands by members for their funds. The accounting and recordkeeping systems were dislocated to an extent which to this day has not been resolved. Many members were inadvertently credited with more gains than had been earned for them, and in some instances this led to overpayment when they requested their funds.

Since March 2006 Olint has had to move its operations to TCI, address continued demands from club members, and pursue litigation against both the FSC and NCB up to the level of the Court of Appeal. On 18th July 2008 it won its appeal against NCB, which had ordered Olint to close its account. Its appeal against FSC, relating to the validity of the Cease and Desist Order, is pending before the Court of Appeal and will be vigorously pursued, and an early date is being sought.

David Smith wishes club members and the wider public to know that at all times his intentions and activities have been directed towards honestly fulfilling his obligations towards his members. He has not applied the funds of members to his own use. However, as a result of the pressures and hostile actions mentioned above, Olint has been unable to deal expeditiously with its accounting problems. Time is needed to conduct a full audit of members’ accounts and balances. David Smith wishes us to say that he is deeply sorry that members have suffered delay, disappointment and extreme anxiety as a result of the difficulties of Olint. If he is permitted to do so, he commits himself to fulfilling his obligations and making payments to members within nine months. He asks members to bear in mind his record of conscientious achievement.

18th July 2008


Lewfam updates members

It is all unraveling and it is becoming sadder with each passing day. Lewfam has issued an update to their customer. The full contents of the letter can be seen below.

Dear Members;

We apologize for the long wait in communicating with our members. We have been trying to fully understand the situation surrounding all the negative publicity directed at OLINT and our trader, Mr. David Smith before contacting you.

This statement is therefore the latest update, as we know it. Mr. David Smith, had been enduring due diligence on his fund which we were assured would end on July 2 resulting in the release of funds to its members including LewFam. We wish to state that no funds have been delivered into our hands hence no fulfillment of current encashment requests to our members.

On July 14 the offices of OLINT Jamaica were closed. The reason stated by OLINT was because of threats including bomb threats. On the same day we were informed that Mr. Smith was under investigation and his accounts and assets in the Turks and Caicos Islands, where he resides, have been frozen. Mr. Smith has not been arrested and he is free to travel and continue conducting his business. There has not been any gains reported for June and this is understandable.

Mr. Smith has indicated that there are large numbers of members requesting withdrawal of their funds. He has further stated that in order to fulfill their requests, an audit will have to be completed. His auditors will ensure the equitable disbursement of these funds. We await word from OLINT as to when disbursements will resume and we enlist your prayers, patience and restraint. Be assured that LewFam will be acting on behalf of our members to ensure that their interests are protected.

We remain steadfast with Mr. Smith in prayer and in our private and public support for him as long as it takes to resolve the current and future situations.

We recognize that members are experiencing severe hardship at this moment, but we ask again for your continued prayers, patience and restraint.

If you have any questions, please do not hesitate to contact us at 866-274-3272.

Management and Staff
LewFam Club


OLINT: Where is the Money?

Before you read this article please read What Happens to the Money in a Ponzi Scheme?

Al Edwards writing in the Jamaica Observer ask the question that people should be focusing on. Even If that ‘e-mail’ is fake, although some believe it is genuine, that is not the issue. The issue is where is the money. Here are some quotes from the man who authored the another article, two(2) months ago May 16, 2008 to be exact, “Olint at a Cross Roads”

Club members of popular foreign currency trading outfit Olint and indeed most of the country are preoccupied with two questions: Will people be able to recover their invested funds and what happened to all that money?

The article points to the fact that there will be no help form government, so club members have their options clearly cut out. The leader of the flock has been quiet and their has been no word of comfort.

In effect, club members will have no recourse other than OLINT for their money. So what does David Smith propose to do about it? His representatives have been strangely quiet, and he has not stood before his flock and calmed their nerves.

If that David Smith and his team is not providing any answers, it is clear that the club members need to be assembling their own high power legal team.

Excuses Dwindle

The author then turns to the rumours and like this writer the author points to the dwindling excuses. Rumours of that the prominent bank, NCB, clearly as they are the possibly the only bank with OLINT accounts if not the one with the main accounts.

Olint has not endeavoured to confirm the veracity of that statement, leaving NCB prudently to categorically state its position.Both the Financial Services Commission (FSC) and NCB made it clear earlier this week that they were not the ones preventing members encashing Olint cheques inferring that once members had cheques they could be cashed. The excuses were slowly being whittled away.

In another section, the writer tries to quietly suggest that maybe all was not well. 

It may also be the case that having paid out anticipated returns to his club members, and with no new money coming in; he was caught between a rock and a hard place. Then again, the question has been posed: Was he fully engaged in foreign currency trading, or were there detrimental lapses?

While the writer of the article is afraid to use the SCAM word or the PONZI word we are prepared to. The questions that should is really being asked was it bad management or was it a case of FX outfit that never was or a FX outfit turned PONZI. 

Goal Post Gone

Asking a local analyst for a comment, the analyst drew for a quote from the article, Olint at a Cross Roads, one that all well thing persons should consider.

“You summed it up earlier in that article, ‘Olint at the crossroads’, when you said if the goal posts keep moving a lot of people will get pissed-off. I’ve got the quote here on my desktop: ‘If David (Smith) does pay out everybody what he should rightfully pay them, then there will be a huge sigh of relief right across Jamaica. His reputation will be enhanced both professionally and personally. If he does not, he will be stigmatised as a charlatan and rendered a pariah. His fate lies in his own hands. His word, dare I say it, has to be his bond.’

“I think that about says it all, don’t you?”

The Goal Posts have shifted so many  times to the point where it now appears that the goal posts have been dismantled.   

The article is clearly worth reading, please read it, but  maybe answer is No Money No Deh

Source: Olint: What happened to all that money? (Jamaica Observer)


n.b. We will comment on the “e-mail” soon

What Happens to the Money in a Ponzi Scheme?

Cash Plus was formally discovered to be a ponzi scheme by the Receiver that was appointed by the court. My recollection is that the Receiver said that approximately 70 % of the funds received were used to pay investors’ principal and interest. As in typical ponzi schemes there was little to no income generating activity.

Let us look at a simplified example of why when ponzi schemes fail there is typically very little money discovered.

Let us call our ponzi scheme Lose Our Shirt & Socks, Inc (LOSS, Inc).

100 investors invest $1,000 each on January 1 in LOSS, Inc for a total investment of $100,000.

  • LOSS, Inc has little to no actual income generating activity from FX trading or other legitimate business activity.
  • LOSS, Inc pays an average return of 10 % per month. We will ignore compounding to keep it simple. Compounding makes the situation worse.

On December 31, after 1 year, only half (50) of the investors have collected their monthly interest. The Other half (50) of the investors now request redemption of their principal and interest.

  • LOSS, Inc has collected only $100,000.
  • Total interest due for the year is $120,000. 

The first half (50) collected interest monthly for a  total interest of $60,000 for the year. That means that only $40,000 i.e ($100,000-$60,000) available in the fund.

Funds available now $40,000

  • The second half (50) investors now want their principal back ($50,000) plus interest ($60,000) = $110,000 due, but the fund only has $40,000.
  • LOSS inc. in trouble!!! It only has $40,000 to pay $110,000 and that is only for 50 investors.
  • If the other 50 investors wanted back their principal the situation is worse. LOSS inc would only have $40,000 to pay $160,000 ($110,00 + 50,000).

The fund is deficit, in the red for a total of  $120,000

As you can see in this basic example and we ignored compounding, most and probably all of the money will have disappeared to pay back investors. It is gone.

Consider that in our simple example we did not factor in such expenses as legal fees, employee salaries, rent, office expenses etc. Neither did we factor in money taken by the principals and or family members to purchase such luxuries as private jets, expensive homes and cars etc.

One can clearly see that the only way the ponzi can continue is if there is a continuing influx of new investors providing new funds and or the Principals can somehow keep investors from requesting redemptions. With the occurrence of one or both of these situations, the ponzi will terminate.

Please think and check before investing. If it turns out that you invested in a ponzi scheme it is very likely that most if not all of your money will have vanished. While losses cannot always be avoided in investing, observing many basic investing principles will aid in reducing the possibilities of loss.

OLINT Assets Frozen 3 Months

Reports on Nation Wide News is that Olint Assets in TCI will be forzen for at least 3 Months. This is more bad news for OLINT and affliated/feeder club investors. For the last seven(7) months most of Olint investors have not been paid. Those seven months look like it will be at least 10 months.

There is still no word on the state of OLINT’s financing.

Court Battles: OLINT:1 to NCB:1

After today’s round of battles the NCB has won one and Olint one.OLINT has got the court to keep the injunction in place that allows the OLINT accounts at NCB to remain open. In a significant development the court of appeal ruled overturned the ruling of the Supreme Court and order tha the case should be returned to the Supreme Court and hopefully for a speedy trial.

For NCB, the court ruling that Micheal Hylton can continue representing NCB. The court of Appeal said there was no merit to OLint’s argument that Mr. Hylton was privy to classified information. Micheal Hylton is a former Solicitor General of Jamaica and was involved in the FSC court battles against NCB.