Olint bankrupt, only US$3m in local accounts.

It has been confirmed that the local accounts which Olint held at NCB and which they were told could be closed by the UK based privy council only contained US$3M.

Given this new piece of information and what we have already received from TCI , it can now be confirmed that Olint investors will most likely remain as broke as they are today, as no “payout” is likely now or in the future.

I guess most of us already had come to that conclusion based on information that has been slowing leaking out.

http://www.sunheraldja.com/article/show/2177

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OLINT Accounts at NCB can now be closed.

Tonight news has surfaced that the UK-based Privy Council has ruled that the National Commercial Bank was right when it made the decision to close the accounts of David Smith’s investment club,  Olint.  In the meanwhile there is news that another UFO is being investigated.

After much hassle, it appears NCB has been given the green light to close  OLINT‘s accounts. What would be interesting to know, is how much money, if any, is in those accounts.

The result is not a surprise to many given current ‘ know your customer’ policies and other Anti-money laundering regulations in place today.

Partners Financial Investment Limited being investigated

According to report from Radio Jamaica the Fraud Squad is probing another alternative investment scheme,  Partners Financial Investment Limited

It is understood that complaints from investors, who have reportedly pumped millions of dollars into the scheme has resulted in the investigations.

RJR News understands that investors in the scheme, which traded in foreign currency, went to the Fraud Squad after representatives of the Partners Financial Investment Limited were unable to give them answers about their money.

One of the investors reportedly lost $90 million in the scheme.

We are not sure if Partners Financial Investment Limited was related to OLINT in any way.

Source:

Hot Shot Traders or Con Artistes

Just a few days before the  anniversary of a hot article appearing in the Jamaica Observer on January 25, 2008, we continue to warn people, careful where you put your money.  In this article in the Jamaica Observer, Al Edwards, referred to three Hot Shot traders.  Here is an interesting now questionable quote about David Smith.

Perhaps the best-known and now renowned FX trader to come onto the scene in recent years is David Smith of Olint. For seven years he worked as a licensed representative of Jamaica Money Market Brokers (JMMB) specialising in international FX trading under the guidance of both Keith Duncan and Julian Mair.

The question now on many thinking persons minds was David Smith(OLINT) or Donavan Davis JR.(Capital Blu) really trading at all?

We encourage people to be very careful were you put your money.  Everybody is potentially open to being scammed  or conned but make every effort to avoid it.  Do not ignore the warning signs!

  • If it is too true to believe it probably is?
  • Is the operations transparent ?
  • Is it open to regulation, (yea we know of Madoff, but if they don’t want to be regulated stay far away)?
  • Do you know how the investment will make money?

By June of  2008, Al Edwards, had to be singing a new tune.

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?

What do you think?

Related:

OLINT has Money in the Bank, but enough?

According to public documents obtained by Investforlife, the following is the situation on the Supreme Court Case in Turks and Caicos involving David Smith and Tracey Smith

The restraining order of July 19, 2008 remains in effect. It prohibits David Smith and Tracy Smith from dealing in their assets. It also prohibits anyone holding any of their assets from dealing in the assets.

The order applies to all of the respondents assets and includes

1. property and assets of the company known as OLINT TCI ( located at Hallmark Bank and Trust)
2. Property and assets of TCIFX Traders Ltd.

What about the money? In the business accounts here is the breakdown.

TCI FX – $5,550.54 (Expense Account)
TCI FX – $895,039.34 (Customer Account)
TCI FX – $264,562.15 (Certificate of Deposit)
TCI FX – $800.51 (Charity Account)
Total: $1,165,952.54
All held at the TCI Bank

OLINT- $6,567,230.18
Held at Hallmark Bank and Trust Ltd

All figures in United State Dollars

On Jan. 9th, the Supreme Court declined to discharge the restraint but will give it further consideration at a hearing to be set for the first open date after March 11, 2009.

Flashback

It was reported earlier, July 2008, that the amount  frozen at FXCM was US $3.7 million other and  US $0 (account now closed). 

Olint investors, direct and indirect, now need to revisit the NFA complaints against I-Trade FX. Where is the money ?  Should  investors be asking themselves where does the money in Ponzis go? 

Related:

OLINT Freeze remains

The freeze on David Smith and Olint’s assets in the Turks and Caicos Island(TCI) will remain in effect for at least another two months. This according to information coming out of today’s proceedings at the TCI supreme court. The case will not come up for mention until sometime after March 11, 2009.

Olint direct and indirect  investors were hoping on the freeze being lifted  that was not to be. They will now endure the at least next two haunting  months with unresolved question still being, how much money if any is left.

It is reported that David Smith is once again going to consult with his high powered legal team on how to proceed.

Long Week-end for Smith & Olint faithful

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.

Related:

Sources:

Olint Ruling in TCI delayed

We are receiving confirmed reports that the the Judge in the Olint case, in the Turks and Caicos Islands, has delayed the ruling until Monday, January 12, 2009. This is in order further review all the documents that he now has before him.

If this is true, the Olint faithful and others linked to feeder clubs and piggy-backers will have to wait a few more days to hear what is the status of the frozen assets of David Smith and Olint.

Update: We can now confirm. The Judge has reserved Judgement until Monday, January 12, 2009.