I-Trade and Martinez Response Delayed

The NFA is reporting that I- Trade FX and Isaac Martinez’s response, to the June 30, 2008 complaint, should be available on August 15, 2008. According to the NFA information desk, an extension was given and as soon as the response is available it will be posted on their web-site. They further stated that there was nothing to be read into the delay as it is a usual occurrence.

Serious Penalties if found guilty
According to the complaint document, at the conclusion of the proceedings, the NFA may impose one or more of the following penalties:

  1. expulsion or suspension for a specified period from NFA membership;
  2. bar or suspension for a specified period from association with an NFA Member;
  3. censure or reprimand;
  4. a monetary fine not to exceed $250,000 for each violation found; and
  5. order to cease and desist or any other fitting penalty or remedial action not inconsistent with these penalties.

History
On June 30,2008, the NFA filed a complaint against I-Trade FX after investigations found that I-trade FX failed to file Suspicuous activity Report(SARs) on some transcactions carried out by OLINT, TCI FX, David Smith, Ingrid Loiten of May Daisy and Gareth Harris.

I-Trade FX response to the complaint is of interest to many persons especillya OLINT and May Daisy investors. What I-Trade says might not have a bearing on how quickly persons get back their money but it might just give further highlights into what happened to the money.

The Department of Justice in the United States in a letter dated July 11,2008, later froze all the assets of the said persons/organisations named above in that NFA complaint against I-trade FX. Whether this was conincidence or related no one is sure but reasonable conclusions could be drawn.

MTI on the Defensive?
On Sunday July 27, 2008, Market Trader’s Insitute(MTI) a sister organisation of I-Trade FX, published an AD. That AD it could be said stopped just short of calling David Smith’s OLINT and Ingrid Loiten’s May Dasiy and other Forex Clubs scams and guilty of taken advantage of Jamaican people.

Related:

David Smith Sued

It was only time before it happened but now it has. The Jamaica Observer is reporting that at least two unhappy investors have opted to file lawsuits in the Supreme Court on Monday against OLINT’s Principal . The man citing “fraudulent representation” and are seeking a court order to traces Smith’s assets.

Those filing the suit and the money they are seeking to recover:

  • Christopher Walker, medical practitioner, US $2.5 million plus interest.
  • Micheal Belcher, businessman,  US $800,000 plus interest.

It should be noted that suits are against the principal of OLINT, David Smith and apparently not against OLINT. This might be a very important point as if OLINT is determined to be a PONZI and is placed into receivership, a lawsuit against OLINT might just be pointless but the legal minds can ponder that detail. 

Issues to consider 

At this time there are no criminal proceedings against David Smith but the following might be of interest. Attorney-at-law Shirley-Ann Eaton commenting on the Cash Pus lawsuits said it won’t bring any relief and thinks it makes no sense, especially with criminal action pending. She also argues that there is the issue of proceeds of crime, and that those proceeds could actually end up in the hands of the state. 

David Smith moved his operations to the Turks and Caicos in 2006 after battles with the FSC saw them issue a Cease and Desist order that order OLINT and LEWFAM to stop accepting new depositors. In December 2007 the joint appeal by LEWFAM and OLINT against the Cease and Desist was denied. OLINT suit against the FSC remains in the courts.

 OLINT has failed to pay the majority of its clients, interest since January 2008, a little after the collapse of Cash Plus, another UFO now acknowledge by many to have PONZI.

On June 26, F1 Investment, another UFO filed a  lawsuit in a Florida Court against May Daisy another troubled UFO.

Source: OLINT Boss Sued

Related:

Investors asks Questions of OLINT

A writer in the Jamaica Gleaner has a few questions for David Smith and OLINT. We picked out two(3) questions:

  1. If it is true that Smith and Olint had the money to repay all members as he has constantly stated two weeks ago, why is the nine months needed? One would simply have expected a statement saying that once the assets were no longer frozen, he would revert to the last payment plan he put forth. Again, where has this nine months come from?
     
  2. The statement .. it makes no mention of whether Olint has sufficient money to cover its liabilities although, I suppose, the extra nine months being mentioned suggest it does not. If that is true, where is the money?
Do you have questions for OLINT and other un-regulated financial organisations? 

You can read the rest at: Some questions for David Smith

David Smith Did not Attempt Suicide

Radio Jamaica is reporting that rumours that OLINT’s head, David Smith attempted to commit suicide are NOT true. The reports of a suicide attempt were quashed by Senior Superintendent of Police Hubert Hughes in Turks and Caicos who spoke to RJR. Senior Superintendent of Police Hubert Hughes who is leading the police  investigations into OLINT’s operations in the TCI, where David Smith now lives, strenuously denied the rumours.

This is latest of a number of rumours swirling around since Olint has failed to pay its investors for at least the 7 months and based on the latest statement they are seeking another 9 months to make good.

Source:OLINT’s boss did not overdose

n.b. We would appeal to people not to spread such rumours, as these rumours not only affect, the person named but also those who have been waiting to hear what is happening with their funds.

Possible Money Laundering Claims hit OLINT

Nationwide news is reporting that David Smith led, Olint is now the subject of a USA Federal Money Laudering investigation.  The report quotes a United States Department of Justice(DOJ) letter dated July 11, 2008 that says that the federal authorities believe that the accounts contain property  involving money laundering transactions, a violation on USA money laundering laws. The letter says given the nature of the property in question, the situation requires that the bank accounts be frozen immediately to prevent the dissipation of the funds.

According to the report, the US Federal Authorities has frozen the all accounts in the USA of  

  • OLINT, 
  • TCI FX Trading, 
  • Gareth Harris, 
  • May Daisy, 
  • Ingrid Loiten, 
Amounts frozen at FXCM – a) US $3.7 million other b) US $0 (account now closed)

It now appears that the Gleaner report of July 16, 2008, for all its inaccuracies,  was unto to something but had not quite gotten it right.
 

Time-Line of latest events
I-Trade FX in the mix or coincidence?
Interestingly, while I-Trade FX is not mentioned in the news clip, the same persons/entities named in the NFA investigation into I-trade FX are mentioned above.  The NFA complaint against I-Trade FX was that it failed to report suspicious activities. Here is a quote.
l-Trade began filing SARs for suspicious activity noted in customer accounts. However, the activity reported in those SARs paled in comparison to the suspicious activity that went unreported relative to the Olint and TCI accounts and the Harris and Loiten accounts. For example. l-Trade filed a SAR for a customer who deposited $10,000 in an account and withdrew the funds several months later without ever trading. Similarly, l-Trade filed SARs for two other customers who each deposited $5,000 and then withdrew the funds a month or two later without conducting any trading. The activity reported in these SARs was far less suspicious than the suspicious activity which went unreported in the Olint, TCl, Hanis and Loiten accounts
David Smith was once a principal in I-Trade FX. 
Things are not looking good for May Daisy, Olint and their investors and not very good for I-Trade FX.  
Here is the clip… 

Source: Nationwide News Network

Related:

n.b. there has been no charges or indictments laid against any of the parties named

Cash Plus Update #5

The Cash Plus Co-interim receivers have issued an Update (#5) on matters related to Cash Plus. The release clarifies issues surrounding the appointment of the provisional appointment of a liquidator. The report points out that the liquidator has only been appointed for the Cash Plus Group Limited while the CPL and other CPL affiliates are still under receivership

Cash Plus Update # 5
Provisional Liquidator Appointed for Cash Plus Group Limited

Cash Plus Group Limited (CPG) (former Solrac Holdings Limited) was incorporated on January 27, 2005. The investigations of the Co-Interim Receiver-Managers during the course of the Receivership have revealed that the financing of CPG, along with the activities of other Cash Plus entities, including Cash plus Development Limited, came primarily from Lenders’ funds provided to Cash Plus Limited (CPL).

Following the presentation of a petition filed in the Supreme Court on June 12, 2008 by the Premier League Clubs Association Limited (PLCA) to wind up Cash Plus Group Limited (CPG), on June 27, 2008 the court appointed Mr., L. Monthly Kandekore, trustee in bankruptcy as the Provisional Liquidator of CPG. The PLCA has alleged that CPG failed to honor it financial commitments in respect of a Sponsorship Agreement entered into in October 2007-2008 Premier League Football Competition. The PCLA sought remedy in the Supreme Court which resulted in the appointment of the Provisional Liquidator.

Question: What is the current situation with CPL and the other CPL affiliates?
Answer: CPL and the other CPL affiliates are still in receivership until the Court orders otherwise. In the meantime, the Co-interim Receiver-Managers are continuing their investigation and efforts in identifying and locating assets of CPL and CPL affiliates (other than CPG)

Question: How will the appointment of the Provision Liquidator affect the work being done by the Court appointed Co-interim Receiver-Managers and the repayment of lenders funds by CPL
Answer: the court-appointed Co-interim Receiver-Managers, installed on March 31, 2007, continue to have jurisdiction over the assets of CPL and COK affiliates with the exception of CPG, until the court decides otherwise. Further, the receiver-Managers have been mandated by the Court to provide a final report on CPG by 8 August 2008

Question: How much of the assets of the Cash Plus Group of Companies will be administered by the Provisional Liquidator
Answer: CPG is the single largest holder of the assets of the Group of Companies, approximately 50% and includes real assets and deposits with various institutions from fail acquisitions.

Related

Gleaner: David lived it up

The Jamaica Gleaner is presenting a side of the man behind OLINT. In a Gleaner artcle of Sunday July 20, 2008, a reporter now in the Turks and Caicos tells a few stories. Here are some quotes:

Smith is a popular figure in corporate circles here and is known to throw down as much as US$100,000 ($7.2 million) a night at the Players Club and Casablanca casinos, two of his favourite spots.

No one is prepared to give their name when talking about Smith, but they speak highly of his boundless benevolence, which includes sponsoring many sports competitions and social events. “David helps a lotta people here man. He’s good for this country,” says a man who claims to be Smith’s friend.

Two weeks ago, he celebrated his birthday with a massive party at his mansion in the upscale Chalk Sound area. It was reportedly attended by several Jamaican members of Parliament.

It is interesting that these friends are not prepared to have their names called and stand up for their friend, especially when their friend based on what we hear is happening clearly needs help.

It should also be noted that OLINT sponsored the Jazz and Blues festival in January 2008 , for a significant amount we have been unable to ascertain, and had launched a US$1 million Olint foundation in December 2007.

If we are to believe these stories, David Smith was living the life in the Turks and Caicos while his club members for at least the last 7 months have been scouring blogs to get information on what was happening to their money. It has been torturous to say the least,  for members as they have shifted through speculation, conspiracies theories and the facts, only to be stunned by the contents of the now famous ‘e-mail’ that only confirmed what many(detractors) have believed and available evidence has suggested for a long long time. Things at Olint were not what they seemed.

Prayers for OLINT

Interesting in a letter to the Gleaner, a Bishop Peter Morgan,  appears to believe that OLINT is just having technical difficulties and soon return to regular programming.

It is apparent that they do not lack the funds to disburse gains to their club members, but are hampered by the proper mechanisms to do so.

Bishop Peter Morgan, it is time to wake up and smell the roses. Persons need pray for those that are suffering and pray that the same mistakes are never made again.

Source:Smith, man of ‘boundless benevolence’ (Gleaner) and Prayers for Olint (Gleaner)

Related

Let’s hope this information is right this time. The last time the Gleaner reporting was sloppy and the sources got many things wrong. There is and was no OLINT office in Miami, there no raids in Miami and no joint raid in the Turks Caicos involving USA agents and not to mention no evidence to support the missing/blocked/returned USD $200M dollar wire. Congrats to Gleaner for having the courage and integrity, to admit they got it wrong on some issues.

OLINT Crash – Email Very Genuine(with letter)

Speaking on OLINT’s behalf, Lord Anthony Gifford speaking on Nationwide  News Network, effectively confirms that the e-mail is genuine. After days of speculation of whether or not an e-mail was genuine, the answer is here. Anyone that listens objectively to this clip can draw their own conclusions. 

About 10 minutes and 40 second in the clip, the hosts asks the question about the disputed e-mail.  Lord Gifford claims he is not in a position to speak on the issue. Interestingly this is from Lord Gifford who is was speaking from Turks and Caicos where he and the other members of the high powered legal team are in consultation with David Smith.

Interestingly while Lord Gifford was on Nationwide, Jacqueline Samuels-Brown was on RJR.

Listen to the discussion: Lawyer’s statement

Source: Nationwide News Network

The letter

STATEMENT ON BEHALF OF DAVID SMITH BY LORD ANTHONY GIFFORD QC, JACQUELINE SAMUELS-BROWN AND TOM TAVARES-FINSON, ATTORNEYS-AT-LAW 

We have had full consultations with David and Tracey Smith and their local attorneys-at-law Barnett & Associates, during a visit to the Turks & Caicos Islands (TCI), following the restraint order obtained by the Attorney General of TCI on 11th July 2008, which has prevented them from using their assets in the TCI. They have authorised us to issue this statement.

We have recommended a process aimed at obtaining the discharge of the restraint order and securing the return of the computers and documents which were seized from them on 14th July 2008.

On 17th July 2008 the Supreme Court in TCI imposed a gag order preventing further disclosure of the restraint order proceedings, so that we are not at liberty to give details of this process.

We have also held consultations in relation to the general situation of David Smith, Olint and its members.

Olint and David Smith enjoyed an excellent reputation for fulfilling their obligations to their membership up to March 2006 when the Financial Services Commission (FSC), without warning, raided their offices, seized their electronic and other records, and issued a Cease and Desist Order against them.

These events caused Olint to be deprived of their records for a month, and at the same time there were multiple demands by members for their funds. The accounting and recordkeeping systems were dislocated to an extent which to this day has not been resolved. Many members were inadvertently credited with more gains than had been earned for them, and in some instances this led to overpayment when they requested their funds.

Since March 2006 Olint has had to move its operations to TCI, address continued demands from club members, and pursue litigation against both the FSC and NCB up to the level of the Court of Appeal. On 18th July 2008 it won its appeal against NCB, which had ordered Olint to close its account. Its appeal against FSC, relating to the validity of the Cease and Desist Order, is pending before the Court of Appeal and will be vigorously pursued, and an early date is being sought.

David Smith wishes club members and the wider public to know that at all times his intentions and activities have been directed towards honestly fulfilling his obligations towards his members. He has not applied the funds of members to his own use. However, as a result of the pressures and hostile actions mentioned above, Olint has been unable to deal expeditiously with its accounting problems. Time is needed to conduct a full audit of members’ accounts and balances. David Smith wishes us to say that he is deeply sorry that members have suffered delay, disappointment and extreme anxiety as a result of the difficulties of Olint. If he is permitted to do so, he commits himself to fulfilling his obligations and making payments to members within nine months. He asks members to bear in mind his record of conscientious achievement.

18th July 2008

Related