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.

Investforlife & HYIP Programs one year later

May 2009 marks  roughly one year since this blog started, and it is interesting the turn of events.  It has been a most interesting year as the details of the Alternative Investment Schemes(AIS)/Un-regulated Financial ORganisations(UFO)  came out. It was however sad to see and hear the stories of persons deceived and deluded, some even to this day.

While there were others, the following persons, Jason, Nocotec, Jay, Robin Irie,  JohnDoe, DaveSin  were particular targets of harsh criticism for the daring to call the HYIPs Scams. So reviled was this group that were driven from a site (blog) that will remain nameless but it is now known as the #4 bus.  Interestingly, it was the suggestions of some of the posters on that blog that resulted in the formation of this blog. 

Their suggestion was taken and investforlife.wordpress.com was born. One year later, having been featured on NationWide, CVM TV, mentioned indirectly by Observer writers, and over 950,000 page views, Investforlife remains while may UFOs have died along with many supporting websites.

Here is the list of the some ‘programs’ or ‘clubs’ and their prognosis.

  1. Cash Plus – Dead. CEO arrested and charged.
  2. WorldWise  – Dead.
  3. May Daisy – Dead. Anyone knows where the CEO is?
  4. Olint – Dead. CEO arrested and charged.
  5. Capital Blu – Dead  CEO arrested and charged.
  6. TCI FX – Dead.
  7. CARIEF – Bedridden.
  8. Higgins Warner – Dead.

Feeder Clubs – Dead

  1. Lewfam (Jamaica) – Dead
  2. SGL Holdings(Grenada) – Dead 
  3. KUI(Jamaica) – Dead
  4. Wealthbuilders(Jamaica) – Dead
  5. UWIN(Antigua) – Dead
  6. Vision Increase(Panama) – Dead
  7. Regency International(Florida) – Dead. CEO arrested
  8. F1 Investments(Florida) – Dead. Filed lawsuit against May Daisy
  9. Willshaw(St. Lucia) – Dead
  10. RKR Funds – Dead.

Some sites where the predominate theme appeared  to be the defense of the UFOs have also died or changed focus. We congratulate those that allowed the contrary fews to posted.

  1. jamaicainvestmentwatch.com (dead)
  2. cashplusinvestment.com (refocussed)
  3. http://www.highyieldsource.com/forum (in need of cleaning up, controlled by spammers)
  4. wealthmax.wordpress.com – remains for the record.

Thanks to all the contributors that have kept this blog going, despite the challenges. May this experience be a lesson to us. Think and check before you invest.

May Daisy members still longing

May has gone, it is now the middle of June and no Daisies have bloom as yet. Since early June, a new update is now available from May Daisy to its memberships explaining the continued delay. The early June communication suggested that Cycle A was completed. However feedback from members has not suggested that this has been done.

Dear Members:

We apologize that we have not completed the updates to all the accounts. The updates have been delayed as we try to honour the many requests for status reviews. Update priority is given to the accounts in the earlier cycles. We have updated all of the cycle “A” accounts, therefore all persons in this cycle will now have seen this reflected on their account. This cycle has been closed. We have also closed off the list for the cycle “B” accounts and are in the process of updating these accounts.

We expect the payments to be on time and are working feverishly to ensure this happens. We thank you for your patience and wish you God’s richest blessings.

In past communications, May Daisy has promised that members would be placed in cycles and that persons would be paided based on the cycle they fell in. Based on the Cycle Plan, members in Cycle A should have been paid by June 13. However, it is not clear if any May Daisy member even knows which Cycle they belong to and NO payments have been made.

There has been rumours that May Daisy will be sending out statements quarterly not monthly. There is really no point to this as people continue not to be paid. There continued to be stories that once the members have been placed in cycles, which should have bee done already, ‘encashments’ or payments will be begin at the end of June.

In Blogosphere, a group of May Daisy Investors, have form a “May Daisy support Group” with an aim to tackle the Management of May Daisy, maybe a little too late, but it is better than sitting down idle and trusting those that have fail be keep promises.

There is still some answered questions, why was one of the Principals arrested in Zambia, was the arrest related to May Daisy funds, has the cases against the principal been dropped?

I-Trade Response now available.

The NFa has release I-trade FX’s response to NFA complaints.

At this time we are not able to comment, we will do so later but here are some highlights

Ingrid Loiten

Respondents state in the affirmative that over 94%o of the funds deposited by Loiten were lost tradings.

Gareth Harris

Respondents state in the affirmative that Harris sustained trading losses in his account in excess of 9.5 million dollars, which was equivalent to over 94% of the deposits made in the account.

On David Smith we will have to revisit the document.

Here is the link

F1 vs May Daisy (Part 2)

On June 26, 2008, Steve Plamer & F1 investments has filed a lawsuit in a Flordia court against Ingrid Loiten, May Daisy, I Trade FX, LLC, Deutsche Bank Trust Company Americas and Turks & Caicos Banking Co. Ltd.  In part 2 of this article we examine briefly the counts  as stated in the lawsuit.

These are the Counts as outlined in the lawsuit 

  1. Breach of contract
  2. Civil theft
  3. Conversion
  4. Unjust enrichment
  5. Demand Accounting 
We will now present a brief outline of each charge.

Count #1: Breach of Contract

Breach of contract is pretty much self explanatory.  F1 investments is accusing May Daisy and Ingrid Loiten of the following breaches.

  • Wrongful transferring money to 3rd party
  • Delegating duties
  • Failing to exercise diligent honesty
  • Failing to return funds when requested.

Count #2: Civil theft

In this count F1 Investment is basically saying May Daisy and or Ingrid Loiten has stolen their money. Civil Theft appears to be a american statue in some states including Florida. In summary it is a civil action brought by private individuals and is basically similar to obtaining money by false pretense, fraud and or deception.  It is a statutory right, and in Florida it is defined in §812.012, Florida Statutes.

Count #3: Conversion

This has to do with intentionally and wrongfully depriving another  person of his property permanently or for an indefinite time.  The intent component is important and F1 Investment is arguing that May Daisy/Ingrid Loiten has intentionally deprived it of its money.  The failure to return property(money) also is a part of conversion.

Count #4:  Unjust Enrichment 

In the this count F1 Investments is arguing that May Daisy has been duly enriched at the its expense and under obligation to make restitution.  F1 investment is asking May Daisy has unjustly gained it must return F1’s money

Count #5: Demand for accounting

It is in this count, that I-Trade FX and the other defendants come in. F1 Investment is asking the court to demand the accounting records of Ingrid Loiten and or MAY DAISY. That is, they are requesting that all the transaction records for accounts held with these defendants, including I-Trade FX be produced.

I am not a lawyer so the information presented is my understanding based on information available. Please consult a lawyer for legal advice.

Sources:

Striking Similarities of UFOs X,Y,Z

Today we invite people to look at the similarites between three clubs. Let’s call them X, Y, Z. For each question, if the statement is correct for at least 2 UFOs, answer true or false. When you are done tally the answers. (You will need a peice of paper)

  1. Offered High Yield returns fixed and averaged close to or above 10% per month i.e. 120% annually (simple interest) or 210% annually (compounded)
  2. Operated without being registered with the FSC
  3. Remained Un-regulated and fought regulation. (n.b. X is allegedly registered in TCI but not in Jamaica)
  4. No Audited Financial Statements available.
  5. Little or no transparency
  6. Blamed one or all of the following, the Banks, FSC, Brokers, Due Diligence (oh now some parts of the Media e.g Cliff Hughes and Nationwide.)
  7. Poor accounting Records (X admitted it, Y receiver stated it and Z ex-Manager said it)
  8. Sponsored Big Events( possibly to buy social capital), Premier League(Y), Jazz and Blues Festival(X) and Ms. Universe(Z)
  9. Have failed to pay most of their clients for months (n.b. Y in receivership/liquidation)
  10. Big supporters/Defenders in the Media e.g. Law Professor David P. Rowe, who later sued them, and Mark Wignall, who up to the end of last week could not find any of his usual ‘sources’ to talk to.

If you have over 7 answers of ‘true’ you have a problem. You should be able to name the clubs. Do you know of any other similarities?

Related:

OLINT: Human Tragedy

Roy Walker lies stricken by prostate cancer and Alzheimer’s disease on his bed in Miami, USA. The Sunday Herald reports, that Roy Walker is a long time childhood friend of David Smith’s mother-in-law, while his son, Christopher Walker, is schoolmate of Tracy Smith. The story reveals that Roy Walker invested his life savings in OLINT, and now he is joins the many investors that have not been paid for months. Dr. Christopher Walker, has already filed a lawsuit against David Smith to recover US $2.5 Million. The money is now needed to care for his dying father but when and if any money will be recovered, no one knows.

Many Hurting
This is human side of the tragedy called OLINT. His case is not the only one, there are many other stories. It includes stories of those hiding from bailiffs, others struggling to pay mortgages and others whose education of their children is now in jeopardy. The stories of pain just keep rolling in. Friendships are strained, marriages are hurting. Many misguided and ill-advised persons mortgaged their houses are not struggling under the weight of loan payments. There are those that placed money set apart University tuition that are now having headaches.

Those that opted to get bigger ‘ride’ are not as bad. Though their egos are bruised, it might be time to trade in for a smaller ‘ride’ and cut the losses.

Christian Duty
The ‘Christian Investors’ you made back more than their principal amount invested, now need to step forward and help those that are suffering. If the Walkers have not recouped their principal, how can some investors sleep knowing that the ‘Roy Walkers’ of this world money might have helped finance their new ‘ride’ or fatten their bank accounts? The ill-gotten gains from PONZIs will need to be refunded. The  ‘Walkers’ must also realize that they are owed just the principal and nothing more.

The Christian Principals of these clubs need to confess, no more games, no more lies. Those Church Leaders that have led the flock astray also need to confess, repent, seek forgiveness and begin the healing process. There is no point defending what was done.  The Bible does warn, as Dr. Walker says in the Sunday Herald, that there will be false prophets.

The Love of Money
Quoting a poster, “nothing is wrong with money”, It is a gift from God and the reality is it is needed to pay the bills, buy food, and acquire health care and so on. We all need to heed the relevant words of 1 Timothy 6:10, “For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs.” 

Further, the scriptures cautions us tells in the tenth commandment flee covetousness, indeed warning us not to focus on what more ‘rich’ man has that we don’t. Paul writing in Philippians 4, tells Christians to be content, trust in God, and that with God is everything is possible and that God is able and that He (GOD) will supply all needs.

Back to God
In times like these we indeed need to be our brother’s keepers. Another sad thing about this is how these SCAMs have once again given Christianity an undeserved bad name. Christianity calls us to be reminded that God, not the FX trader, is the provider, God, not 10% per month, is the saviour and in God, not Man, must we put our complete trust.

Despite the tragedy, there are still those never failing promises that those that are prepare to believe in God can cling to.  One such promise is found in Philippians 4:19, “But my God shall supply all your need according to his riches in glory by Christ Jesus”. Mr. Walker and family, hang on, God cares.

Source:

Related:

In the comments for this blog we ask that persons share their stories or stories of love ones who are hurting. Please no un-related posts, those can be posted elsewhere. Just post about the suffering and the heartaches caused by the collapse of OLINT or other UFOs.