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

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35 Responses

  1. Wow. Talk about binding yourself to the fate of another. If the organizers of this “club” were really at arms-length from DS and O they’ll have a far harder time establishing that now.

  2. Does anybody get a sense that these folks consider themselves as having any kind of fiduciary responsibility to their investors? This is disgusting. These people are either incompetent or they are criminals. I don’t know which is worse.

  3. exactly, bob. i’d add foolish to your list of adjectives as well.

  4. Looks like every one is praying now. Once you start pray in finance its all over

  5. Amen.

  6. So Lew Fam said that the Con Man has decided to do an audit now AFTER he is bankrupt. Just another delay tactic to buy time, cause he knows he has no money. If Olint pays back every body even 10cents on the dollar it would be a miracle

  7. As a Lewfam Club member, I would of liked to have heard how they intend to “ensure our interests are protected”
    Hope and pray is not an answer.Overall a very weak response from Lewfam.

  8. Who is paying for this “audit”? What a joke, and still people are waiting for DS to “pull through”?

    I feel ashamed when I see how my own trusted and loved followed the pied piper into the dawning of the new age (how could these intelligent and sensible people be fools?). Then I feel angry at the pied piper and all those who cheered him on or failed to try to stop him. There needs to be a reckoning, and I mean this side of heaven and hell.

  9. 1.Lewfam has not separated themselves from O. Why they have they not sort the advice of a lawyer so O can relaease info to them. They need to separate their busibess relation from their responsibility to their clients.

    2. Lewfam is still collecting money from new members. With all thats happening why do they not cease collection. Do they not know they will be implicated.

    3.Asking us to Pray…..are these peopl for real

  10. Lewfam’s response is despicable. Compare this to the response of F1.

    Basically, wait for we don’t know what until we don’t know when.

  11. Lewfam is still subject to the FSC’s cease and desist order. Are they breaching the order? Does anyone know?

  12. The reality of the situation is (as I always believed) that NONE of the alternative investment schemes were operating on their own – they simply famed out the money to OLINT.. hence they are now all caught in the web. Asking us to pray – while not the most prudent statement indicates that everyone is at the end of their rope.

    While its likely that investors will not see their money again (but I hope this is not so) asking for some help from a higher being can’t hurt. So yes, I’d have to say they ARE for real.

  13. Why can’t the rates for June be posted ?. this happened after June. So if trading was done, it should be posted. granted that its paper money, but at least be consistent.

  14. I hope that if any of you are christians taht you ae ashamed of yourselves. For the record, prayer is the most improtant weapon against evil such as NCB leaders who are trying to reck DS. GOd is in control. Not the evil powers at work.

  15. I know Major Lewis from LewFam. hes an unstanding christian man. thats why he’s asking us to pray.

    i’ll admit though, the response is pretty weak. iwould have loved to have heard more substantive arguments.

    where is my money, and when will i see it again?

  16. News in. Olint issues press release that has same information from the email… co-incidence ?

  17. kullcull,,,should have post that info under the fake email thread!

  18. marlene
    Either you work for OLINT or you are seriously delusional. Either you desperately and urgently need to get therapy or you are deliberately trying to perpetuate this fraud with your lame attempt at trying to spread nonsense.

  19. I am shocked that nobody has picked up on the key sentence in that statement.
    ‘His auditors will ensure the EQUITABLE disbursement of these funds.’ Not just the disbursement of funds.
    Definition equitable: implying justice dictated by reason, conscience, and a natural sense of what is fair to all.
    This means that as far as Olint funds are concerned, investors will not be paid what they’re owed (i.e. how much is shown on your account.) but will be paid what is fair.
    The term equitable distribution comes up a lot in bankruptcy/winding up proceedings and divorce proceeding. I recommend googling equitable distribution and bankruptcy/divorce to get the picture.
    This statement plus what I’ve heard here in TCI regarding the amount of money frozen convinces me that Olint has money, but not enough money to satisfy all encashment requests or the amounts shown on everyone’s account.
    The auditors are involved not to buy time but to analyse all the investor’s accounts and work out how much they should be given of what’s left. I would say that investors who have withdrawn the same amount or more than they have put in will get very little money if any. Investors who have not made any withdrawals will be ‘given priority’ and will get more money. If there isn’t enough money to pay everyone it’s only fair (equitable) that investor’s get given as much of the money that they put in as is possible right?
    This is only my opinion but to be honest it’s as clear as day to me.

  20. Tito,

    I suggest you stay on this blog as the #4 bus has developed engine trouble.

    Yes, Tito you are dead on.

    The words Equitable are the very words used by CH when he came to the realization that C+ was bankrupt.

    So one can infer from the above that LewFam is saying or implying that Olint in indeed bankrupt or close to being bankrupt and hence the need for the auditor to make sure the “little” money that is left is will see equitable distribution to all clients.

  21. “investors” will be best served by the appointment of an independent fiduciary charged with aggressively protecting their interests.

    the sooner the better as time is not on your side in recovering from a ponzi scheme. hence, you pray you pay.

  22. we are between a rock and a hard place.

    Lawyers, receivers, and auditors will eat up whatever money is left.

    how do you think that Olint is able to pay his lawyers, yet not able to pay staff..because he close the office.

    which office close because of bomb threat ?. you increase security . if it was bomb threat, then no banks would exist in Jamaica.

    he is using the money to save his own skin.. pay lawyers..

    hopefully he can trade again as long as it takes to pay us back…

  23. Olint is insolvent not bankrupt.
    For Olint to become bankrupt they either need to declare themselves or bankrupt, will be declared bankrupt by a court of law as a result of petitions from creditors (investors who are owed money).

    Bankruptcy isn’t the only option for an insolvent company. They can enter into an informal agreement with their creditors to pay back their debt in installments within a given time frame. This is clearly what Olint is proposing.
    Advantage to investor – there’s the potential to recover all their debt.
    Disadvantage to the investor – Olint can still continue with their lack of transparency, they will not be required to have their accounts scrutiny.

    If Olint declare themselves bankrupt then the creditors (investors) will not recoup all of the money owed, but Olint’s account will need to be scrutinised, and what is left will be distributed equally.

    To be honest if Olint were running an above board operation then the best thing to do would be to declare themselves bankrupt have what’s left distributed fairly by an independent third party.

    The fact that they want to enter into an informal agreement to be given time to pay back is either an acto of goodwill, or they don’t want their accounts scrutinised which will happen with bankruptcy.

    I will continue to travel with both buses, as a londoner I’m used to travelling with different types of public transport.

  24. no way an informal creditor arrangement works in this type of situation

    insolvency proceedings cost money, true. however, that money is directed to (a) giving investors transparency and (b) recovering from the earlier “investors” who profited from the fraud. the money is NOT directed to the defense of DS (which is outrageous).

    there is no doubt in my mind an insolvency proceeding, run by competent fiduciaries, will provide a far better chance of “investors” recovering their capital. that is my experience anyway.

  25. @ doc, investors WILL recover SOME of their capital.
    $57m is the semi confirmed figure i’m hearing here, although that number is meaningless as we don’t know how much has been invested. That figure could be 1% or 99% of what’s owed.

  26. great, tito … the more the better

    here is what would make the most sense to maximize any equitable recovery:

    commence a receivership or other insolvency proceeding so all investor claims are channeled to an estate;

    carve out $1 million of these funds to conduct a thorough and proper forensic analysis;

    carve out another million to reconcile claims;

    carve out another $2 million to for the purpose of commencing ancillary insolvency proceedings in all jurisdictions where assets or claims can be asserted to recover funds;

    in all of these proceedings, fiduciaries should be aggressive as possible to recover hard assets of the perpetrators and those that conspired to keep the scheme going (i.e. leave no money for bad guys to hire lawyers);

    run a short amnesty program to solicit voluntary returns from those innocent “investors” that received fictitious profits – by this I mean offering a release in exchange for the return of 70% of fictitious profit (or more if they pray about it) without litigation; and

    sue those that refuse to return their ill-gotten gains.

    while it would be far more complex than set forth above – it is definitely “doable” and would be more beneficial – by grand canyon dimension – than the more passive course this thing seems to be on right now.

  27. why only assets in TCI were seized not jamaica or the USA. He may be trying to hide those now.

  28. Catd, tci doesn’t have the jurisdiction to issue orders to reach assets beyond its borders. This is the reason that investors need to aggressively pursue commencing ancillary insonvency proceedings in jurisdictions, like JA, where tangible and intangible assets are located.

  29. I am calling for a TRUTH COMMISSION for and against the Investement Schemes

    FOr since recently truth has been constipated and all who gurantee 80% of their investment should there be any dame’ days are harping on morass of some sort.

  30. With all said and done….getting mean and hateful will not help and at some point even if we trust someone or not we are also responsible for our actions…kids do not invest….so to be positive and pray that D gets past all this and start doing what he can to get back on track will OF COURSE help all who is affected. Hoping….

  31. gu easy pon rumor mill…wait fi facts….

  32. You wait, you pray, you pay.

  33. FYI (repost from elsewhere):

    chasethedream, on July 20th, 2008 at 6:53 pm Said:

    lewfam , mi had 25000US with lewfam, mi request and get back US$24,300 2 weeks ago. Thank god! . Mi nuh know how come mi receive it. God was on mi side

  34. I am looking for a list of olint investors.Can you direct me to where I can access this?

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