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.

TCI FX
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.

David P. Rowe Defended Cash Plus?

Here are a series of quotes from a article entitled “Audley Shaw and crabs in a barrel”  by Professor David P. Rowe in the Sunday Herald, November 2007. David Rowe appeared to more than defend Cash Plus, now he is suing Cash Plus for J$117 million dollars

“I understand that Bear Stearns and Cash Plus are about to do a US$1 billion hotel development at Drax Hall. It is a pity that some elements of the Jamaican financial community are behaving like crabs in a barrel in order to sabotage Cash Plus’ obvious success.”

“Media reports suggest that Cash Plus is a major player in the Jamaican economy. Cash Plus, based on media reports has opened negotiations to purchase the Hilton hotel, one of the largest Kingston hotels, in Jamaica, Drax Hall Estate and other huge assets including Mainland International.”

“Cash Plus is also involved in real estate development in the country. Cash Plus is tantamount to the concept of corporate success in modern Jamaica. Of course, as all capitalists know, Cash Plus has had to take great risks in building its empire.”

“The other Jamaican economy is the US dollar economy in which all Jamaicans thirstily participate. This part of the economy is totally unregulated, but forms a basis for significant day-to-day Jamaican transactions. Law firms, beauticians and car dealers all take US dollars in preference to the local currency, and the Bank of Jamaica and the threatening Financial Services Commission (FSC), have no capacity or power to regulate US dollar transactions.”

 “Obviously enterprising American financial establishments will benefit from Cash Plus’ endeavors, while the Jamaican financial institutions, like crabs in a barrel, spread rumours rather than take productive risks.”

See Full Article…

Related :

Cash Plus sued by David Rowe for JMD $117 Million

Cash Plus has been hit by another lawsuit. This time is by USA based Lawyer and Sunday Herald Contributor David Rowe in the tune of JMD $117 Million

The observer reports the said, “During November 2006 and January 2007, Rowe said, he was provided with written loan agreements with respect to the loans.”  This suggests that he should have made back his principal unless he was rolling(compounding)

The article further states, “Subsequent to January 2007, loaned “further sums” to the defendant but that he received no written loan agreement.” This is very interesting. How does a Professor of Law lend an institution money and not receive a contract or written agreement?

The article continues, “According to Rowe’s affidavit, subsequent to January 2007 the monies on the account were converted to US dollars, creating a US dollar loan arrangement and a new interest rate of 13 per cent per month added to the outstanding balance.”

He is suing for the recovery of interest and principal.

Source: http://www.jamaicaobserver.com/news/html/20080523T020000-0500_135945_OBS_MORE_WORRIES_FOR_CASH_PLUS_BOSS.asp