Worldwise Issue new payment plan

We have in our possession a new email said to have been sent by WW chairman Mr Noel Strachan earlier this afternoon.

This new email also makes allegation about a certain business man who has sued WW and who has allegedly collected back all his principal but appears to have filed a suit for interest.

Here is the email allegedly sent to some WW investors :

Dear Partner,

I send this deliberate and forthright message to update and level with you, our partners, about the current situation. Our huge investments in upgrading our accounting system, call centre, and state-of-the-art Online Portal for greater client partner convenience – were designed to achieve more timely responses to our large body of partners, the numbers of which had grown and outstripped the response capabilities of the manual systems we previously had in place. To our regret however, it seems every time we take one step forward, something happens – which has nothing to do with World Wise – but which impacts World Wise in a way that negates our best efforts. No sooner had we put the above service upgrades in place, than news broke about another well-known high-yield investment entity, which was raided and investigated in another territory – causing investors to get jittery – and causing a run on World Wise.

Our new Online Portal which was supposed to have resulted in the fast-tracking of normal partner requests, consequently became clogged and tremendously slowed by the abnormally numerous (though thankfully not total) requests for withdrawals. But the suddenness and scope of this run prompted us to re-focus our time and efforts more on managing the run, than on communicating with you. We had to hurriedly, without notice, evolve a special payout plan and put in place huge administrative resources to deal with this run – while handling it in the best interest of our partners.

In the face of the current run, which has resulted NOT from World Wise`s own actions (which have always been above board), but unfortunately from the questionable actions of other investment entities which have no connection to World Wise, we have taken a conscientious decision to execute payouts in two stages. Stage 1 – Principal, and Stage 2 – Profits. This way we make sure that:

(a) everybody gets his/her principal back first, while we temporarily retain funds to allow for continued trading – as a way of funding the immense administrative costs of paying out a run.

(b) profits will be paid next – these funds will incidentally continue to accumulate more profits while with us. Let us be honest with ourselves. Which financial institution – even the big banks of the nineties – were able to survive a run without an unusual action plan? Truth is … a run (justified or not – in our case unjustified) hurts an institution because it rapidly depletes the institution of it`s income-generating tool of trade (cash) – while massively increasing the institution`s administrative overheads costs. In the event of a run, enormous admin resources have to be brought to bear, simply to execute the large numbers of payouts that have to be executed within a highly compressed time frame.

Notwithstanding, we understand you must be anxious, and are making every effort to put together a practical payment schedule which will take us to no further than February 2009. With this in mind we will commence the first set of payouts on Friday, September 5, 2008 and will keep you apprised of subsequent payouts as soon as we have put a schedule in place, subject to the completion of the audit process which has been slowed because of the overwhelming number of requests in the Online Portal. As a result, we will be closing the Online Portal effective Friday, September 5, 2008. The Portal will reopen on October 6, 2008 for partners to continue making their requests.
Please bear with us while we work in your best interest.

Again, to be forthright, and instead of sweeping it under the carpet, we have to level with you, and bring it to your attention that a certain business man has just sued World Wise – technically for profits. We want all our partners to know that it is a fact that by an unintended process of default, this business man has already received more than his principal. While we do not know if he can win his case, it is important for client partners to be alerted, that such a move is obviously designed to gain one partner an unfair advantage over all other partners. Such a selfish law suit clearly jeopardizes our 2-stage payout plan.

As we are partners together, this being a time of frankness, we would also like you to know that the officers of World Wise are being subjected to various threats. This is truly disheartening, since of all the high-yield entities that came before, we at World Wise are the ones who are actually paying out money. While the authorities compile information on the identities of the perpetrators, we do question the perpetrators logic as clearly, if any harm should come to any officer of World Wise, it would for obvious reasons have a negative rather than positive effect on the payout process.

In light of all this, we appeal to you our partners, to please think of others, to not follow selfish examples, and please be patient while we execute our well thought out 2-stage payout plan. It is the fairest, most honest and conscientious way to safeguard all partners investments – and to demonstrate World Wise s integrity – while we continue to pursue FSC approval.It must be highlighted that In Stage 1 partners who are already at a 0% risk exposure, i.e. their principal amounts have already been collected by them, will not be paid until we are at Stage 2. Please note also that when a partner has taken his full principal back, his or her risk exposure is zero.

As you are aware, WWP has already survived the onslaught of two major runs – again caused by shock-waves from other investment entities UNCONNECTED to World Wise. In this respect, World Wise has weathered the storm even better than those big banks which succumbed to runs during the nineties. A testament to World Wise`s good business practices, sound management decisions, and last but not least – World Wise`s tested and proven INTEGRITY.

We are PARTNERS. We urge you to please work with us. Let`s work in each others best interest – and exercise patience for the good and success of all.

Sincerely,
Noel Strachan

September 3, 2008

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?

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World Wise could leave more investors holding the bag

The Noel Strachan-led World Wise Partners Limited could be the next informal financial scheme to fall, leaving investors holding a long but empty bag, following the demise of the Carlos Hill-controlled Cash Plus Group Limited and David Smith’s Olint Corporation.

Now Worldwise just recently opened its online offices and is said to be taking request from its clients for payouts. In its email to clients, Worldwise is indicating that it will take process no more than 50 request per day.
The big questions are:

1. Does Worldwise have to money to start making payouts?

2. If they do have money, how much is it and how long will it last?

3. Is this just another payments promise which will not be fullfilled.

4. Is Worldwise headed to the AIS graveyard.

Well the Sunday Herald seems to think number 4 is now more likely than before based on the following comment as written in their paper.

This is in line with Dollars & Sense’s predictions that all of the country’s approximately 30 alternative investment schemes, managing almost $200 billion, would bite the dust after Cash Plus went belly-up last year.

Full article is here

http://www.sunheraldja.com/article/show/1361

FSC issues Cease and Desist Order against World Wise

There is news that a Cease and Desist order has been issued against World Wise Partners. While information is sketchy it is understood that sometime this morning the order was issued.When contacted the FSC would not say much save and except that a statement would be issued later today.

World Wise had just re-opened after been closed for 2 months and had stated that accounts under $5000 would be closed and that no new deposits or members would be taken on at this time.

FSC Issues Cease and Desist Order to World Wise Partners Ltd./Noel Strachan

The Financial Services Commission (“FSC”) issued a Cease and Desist Order on Tuesday, August 5, 2008 to World Wise Partners Limited/Noel Strachan (“World Wise Partners”) pursuant to section 68 (1B) of the Securities Act.

The Cease and Desist Order issued by the FSC demands that World Wise Partners immediately stop conducting securities business including soliciting and accepting monies from the public. It should be noted that this Cease and Desist Order does not prevent World Wise Partners from paying outstanding amounts due to investors. Therefore no one can claim that the FSC’s Cease and Desist Order has stopped World Wise Partners from paying investors the amounts due to them.

The FSC’s decision to issue a Cease and Desist Order is based on the fact that World
Wise Partners has induced persons in Jamaica to enter into arrangements which are securities in the form of investment contracts. This was being done even though World Wise Partners is not a licensed securities dealer and its investment contracts have not been registered with the FSC. World Wise Partners has therefore engaged in securities activities in breach of sections 7, 10 and 26 of the Securities Act (“the Act”). Section 7 of the Act prohibits the carrying on of a securities business without being licensed as a securities dealer by the FSC. Section 10 prohibits an individual from carrying out the functions of a dealer’s representative without first being registered for that purpose by the FSC. Section 26 prohibits the issuance of securities without first applying to be registered by the FSC in respect of the securities.

In accordance with the Securities Act, entities that conduct or that propose to conduct securities business or offer investment advice to the public are required to be licensed, and issuers of securities are obliged to apply to the FSC to have their securities registered by the FSC before they are issued.

The FSC is once again advising investors to refrain from investing with or through persons who are not licensed or registered under the Securities Act.

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World Wise to re-open online today

After two (2) months of being closed, World Wise promises to re-open today but online only. On June 2, 2008, World Wise suddenly closed their doors leaving partners dumbfound and shocked. Many partners who did not get notice turned up at the Ruthven Road office of World Wise only to find it closed. In June 2008, the manager, at the time, also resigned pointing to poor record of accounts, poor accounting information, poor asset management; missing check leaves and staff problems including insubordination.

Reasons for closure
After months of reports of problems with payments World Wise had closed their doors. They stated that during the 2 months closure they would carry out audits of user accounts, install new software, re-located to bigger and more spacious offices and carry out staff training. They have also had their share of problems with the banks, and one is not sure if they have any account open with any bank in Jamaica. Their accounts at RBTT were closed in June 2008 following a short legal battle.

Tell us what we owe you
Following the June 2, 2008 closure, a letter was sent out asking partners to state how much they had deposited and how much the had withdrawn, principal and interest. This request was repeated in a letter released around July 16, 2008. For an investment house involved in Foreign Exchange, this is seems very strange. If a commercial bank was to make such a request of clients, the life span of that bank would be in question. Attention to details is critical and proper accounting is crucial to maintain investor confidence in a volatile market place.

Closing Some Accounts
Partners with principal invested between $300 and $5000 will have their accounts closed ‘in ascending order’. No definite time has been given when these partners will be paid just that they will be given an appointment date to come into World wise and then they will know when the money would be wired to their accounts.

Partners who have made requests for encashment will have to use the online Request Portal and must re-submit their requests.

Returns for July known from Mid July
In a letter dated July 18, 2008, World Wise announced that the gain for June was 4% while for July it would be 6%. This is interesting but one suspect that they will say it was a short trading period in July 2008

World Wise says that they will not be taking any new members or new deposits until they are regulated by the FSC. They also will only be allowing withdraw of principal once a quarter but monthly interest payments will continue.

An application by World Wise Investments is before the FSC. There is no application from World Wise Partners according to George Roper in an interview with a media house earlier this year.

World Wise in a letter to investors claims it will open the physical offices on August 31, 2008. It is not clear when monthly interest will begin and whether or not given the current alternative investment climate if partners will not all be making encashment requests.

Related:

N.B. We hope to hear from investors how things are going and you can let us know by sending us an e-mail at hyipmyths[at]yahoo[dot]com. Replace [at] with ‘@’ and [dot] with ‘.’ with out the quotes that is.

RBTT gets OK to close World Wise Accounts

The Supreme Court has given RBTT the green light to go ahead and close World Wise Accounts. World Wise was fighting to keep these account open but today the court ruled in RBBT’s favour. 

It is reported that RBTT had given World Wise notice of its intention from as way back as November 2007. After the ruling, World Wise applied for leave to go the Court of Appeal but that was turned down as well.

World Wise has been troubled in recent times.  Since June it has

  • announced that it would suspend payments for 60 days,
  • had its Managing Director Resign
  • sent a e-mail to clients asking them how much money they had withdrawn or deposited
  • RBTT given the all clear to close its accounts 

In better days, World Wise Partners paid up to 12% per month to investors, while claiming it traded in foreign exchange. World Wise Investments had applied to the FSC for a license, a request that is still pending.

Related 

Investors to furnish records for World Wise Audit.

In an almost un-believable e-mail, World Wise Partners calls for investors to tell them how much money they have deposited and withdrawn from World Wise. This is shocking as the an alleged e-mail shown below reveals.

Here is the alleged email which was sent to World Wise partners yesterday regarding the upcoming audit.

Dear Partner,

As you are aware, World Wise Partner is conducting an internal audit of all our accounts. To facilitate this exercise, we ask for your cooperation in furnishing us with your individual deposits and withdrawals from inception and up to May 31, 2008.

Kindly forward this information to balances@worldwisepartner.com

Thank you your assistance.

Sincerely,
Your World Wise Audit Team

World Wise Partner…..Where Partnership Pays!!!

Now I wonder if the Tax Department is sitting in on this ‘audit’. Given the lack of transparency and disclosure the World Wise Partners would never know.

Now, if this is true, we are indeed shocked as this is the heights of ineptitude for an organisation that claims it is involved in trading foreign exchange, one of the most volatile markets in the world.  Persons involved in FOREX trading have to pay attention to details. This latest e-mail cast even more and serious doubts on the credibility of World Wise Partners.

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