FlashBack: Lawsuits, Injunctions and Forex to Ponzi?

Today we start a series we call Flashback: ‘Last Year this time’. We will run this weekly series until the end of August.

Week ending May 30, 2008.

The week started with us looking at the Cash Plus boss facing the probability of going back to jail after being released on bail, if he failed to declare his assets. By this time, lawsuits against Cash Plus were also propping up. Questions whether they were worth it also surfaced given that effectively the lawsuits would be against the courts since Cash Plus was under the control of a court appointed receiver. Seeking to have the UFO liquidated and charges filed for fraud seems the best option.

Interestingly, one of those lawsuits was being served on behalf of David P. Rowe, a man who had publicly defended Cash Plus and chiding those who sought to clamp down on the Ponzi

OLINT new members agreement
On the Olint front, investors were being told they had to sign a new agreement by May 31, 2008. The agreement was suppose to pave the way for payments to begin in late June 2008.

The link between Lewfam,TCI FX showed it face on the Internet as a visit to TCIFX.com carried you to the Lewfamclub.com website. That slip was correct soon.

We highlighted a story with frigtening similarities to OLINT. A Forex club run by John Ward that allegedly started as a FOREX club but turned out to be nothing more that a PONZI.

Our highlighting of the following statement from a prospectus also created a stir.

The Fund TCI FX TRADERS LTD (“the Fund” or “the Company”) is an open ended investment company incorporated in the Turks and Caicos Islands on August 16th 2006 and subject to the laws of the TCI. It is established for the purpose of investing through OLINT TCI which is a FX Trading entity, with the object of obtaining constant above average absolute return through a disciplined investment approach.

Somehow the reported rates for the clubs (Olint TCI and TCI FX) were interestingly different. This revelation to some cause a stir.

Acount Closure Battles
Another UFO, Worldwise was also in the news battling RBTT’s decision to close their accounts. while Olint was also waiting on the court to hand down a decision in its case against NCB also related to the closing of accounts.