David Smith Arrested – To be Extradited to the USA

On Friday, ABC news via an Associated Press(AP) article had quoted a spokeswoman for the U.S. Attorney’s Office, Amy Filjones, in the Middle District of Florida,  saying that the U.S. government was “actively seeking to extradite” David Smith from the Turks and Caicos Island(TCI)

On Saturday, the Jamaica Gleaner reported that David Smith had been arrested on Friday, January 23, 2015 on a provisional warrant and will be extradited to the United States of America next week.

Given that David Smith served only little more that four years in  a TCI prison it is will be interesting to see if he will serve 24 or 26 more years in a USA prison.

Why David Smith was released on January 22, 2015 with no arrangements made to have him immediately picked up by the United States Authorities is a question the Turks and Caicos Authorities would have to answer.

While his wife and family might be grateful, many who would have suffered as a result of Olint will be left wondering why?


David Smith released from prision in Turks and Caicos

The Jamaica Gleaner  reported that David Smith of Olint Fame has been released from prison in the Turks and Caicos  early based on good behaviour . In September 2010, David Smith was sentenced to six and half years in prison in the Turks and Caicos for fraud related charges. In 2011 he would plead guilty in a United States Court to four counts of wire fraud, a count of conspiracy to commit money laundering, and 18 counts of money laundering, after being indicted in August 2010 (See Document). He was then sentenced to 30 years in the United States.

It is not clear when and if he will now report to the United States authorities to serve the remaining portion of his 30 year sentence. After the United States Trial, in 2011, it was reported that he would serve six and a half years in a Turks and Caicos jail before serving time in the United States.

According to the Gleaner, Oliver Smith his lawyer (of no relation to David Smith) offered no comment when contacted. The Observer seems to believe based on their report that he will extradited to serve at least 24 years in United States prison.

The Turks and Caicos Islands SUN is reporting that David Smith appeared before Chief Magistrate Clifton Warner in Grand Turk yesterday.

The David Smith led Olint operations which turned out to be nothing but a Ponzi was reported to have raked in over US$220 Million from over 6,000 direct investors and many more via feeder clubs.


OLINT’s David Smith Arrested again

Investforlife can now confirm that David Smith of OLINT, OLINT TCI and TCI FX among others, has been arrested again. A source in the Turks and Caicos and more importantly the  Financial Crimes Unit has also confirmed the arrest.

We now understand that there are additional charges as outlined below.

  • 1 count of Theft
  • 1 count of Obtaining property by  deception
  • 2 counts of Money Laundering

He was granted by in the sum of US$ 2 million.

Last week, an Liquidator to wind up  OLINT TCI was appointed.  An article appearing in the Jamaica Observer today indicated that David Smith apparent fears returning to Jamaica but it seems he is facing more legal troubles in the Turks and Caicos.

OLINT and its related companies has failed to pay investors since at least January 2008.  Many feeder clubs associated with OLINT have not paid either.


David Smith may seek exile, fears for his safety

Lead principal of Olint David Smith who is under house arrest in the Turks & Caicos fears that if he were to return to Jamaica that the safety of both himself and his family would be placed in jeopardy and he has not dismissed the prospect of being a permanent exile.


OLINT has Money in the Bank, but enough?

According to public documents obtained by Investforlife, the following is the situation on the Supreme Court Case in Turks and Caicos involving David Smith and Tracey Smith

The restraining order of July 19, 2008 remains in effect. It prohibits David Smith and Tracy Smith from dealing in their assets. It also prohibits anyone holding any of their assets from dealing in the assets.

The order applies to all of the respondents assets and includes

1. property and assets of the company known as OLINT TCI ( located at Hallmark Bank and Trust)
2. Property and assets of TCIFX Traders Ltd.

What about the money? In the business accounts here is the breakdown.

TCI FX – $5,550.54 (Expense Account)
TCI FX – $895,039.34 (Customer Account)
TCI FX – $264,562.15 (Certificate of Deposit)
TCI FX – $800.51 (Charity Account)
Total: $1,165,952.54
All held at the TCI Bank

OLINT- $6,567,230.18
Held at Hallmark Bank and Trust Ltd

All figures in United State Dollars

On Jan. 9th, the Supreme Court declined to discharge the restraint but will give it further consideration at a hearing to be set for the first open date after March 11, 2009.


It was reported earlier, July 2008, that the amount  frozen at FXCM was US $3.7 million other and  US $0 (account now closed). 

Olint investors, direct and indirect, now need to revisit the NFA complaints against I-Trade FX. Where is the money ?  Should  investors be asking themselves where does the money in Ponzis go? 


TCI Police: Investigations could take months

Nothing incriminating yet is the word from the Police in the TCI according to a report published in the TCI Sun. The lead investigator was however quick to warn than that the investigations could months. Here is a quote from the article.

Meanwhile, investigator Mark Knighton of the Financial Crimes Unit, noted that it could take up to three months for his team to complete their probe into Smith’s local operations, quickly pointing out that so far their investigations yielded nothing incriminating.

The police claim they have a lot of documents and it is possible that they will need assistance from other jurisdictions.

“My experience is that, when you’ve got all these documents, and the possibility that other jurisdiction may be involved, this takes time. And the length of time it takes depends on the co-operation of the other jurisdictions. We have a lot of documents to go through, and when we have gone through these documents, then we will make a judgment whether or not we should proceed further,” Knighton said.

We have also heard reports on Nationwide that the police in TCI has sought and gotten additional help to speed up the investigations.

You can read more at 

source: http://www.suntci.com/multimillion.asp

OLINT starts to Fight back

Radio Jamaica is reporting that OLINT’s legal team, led by Lord Anthony Gifford, was in the judge’s chambers in the Turks and Caicos on Monday, July 28, 2008. It is understood from the report that they have started presenting arguments why the assets of OLINT should not be frozen.

The assets were frozen on July 14, 2008, two weeks ago, when raids were carried out on OLINT TCI’s office and David Smith’s home. Subsequently their have been reports of the Department of Justice in the USA, in a letter dated July 11, 2008, freezing the assets of David Smith, OLINT TCI, TCI FX, Ingrid Loiten, May Daisy and Gareth Harris held in that country. 

OLINT direct and in-direct clients in Jamaica, the Caribbean, North America will be waiting anxiously for more news. OLINT and it related affiliates and ‘feeder’ clubs have failed to pay clients interest or honour withdrawal request for many months.

Source: OLINT starts battle in TCI


OLINT Responds to NFA complaints

Below is a response from Olint on the NFA matter…

Dear Club Members/Customers,

You may have seen Complaint NFA Case No. 08 BCC – 014 against I-Trade FX LLC and Isaac Martinez.

That complaint was filed against those entities/persons after an investigative report on I-Trade was submitted by the compliance department of the private body National Futures Association of which I Trade is a member.

David Smith and Olint is not the subject of the Complaint and is not the subject of the investigation.

We have sought and obtained legal advice in relation to the complaint so far as relevant in order to be able to clarify its terms for you. The clarification follows below:

1. The Complaint refers to and relies on the fact that [t]he Financial Services Commission (FSC) investigated Olint and Smith for allegedly offering illegal securities, and issued a cease and desist order in March 2006 that, among other, prevented Olint from accepting new members. The Jamaican Supreme Court upheld the FSC order in December 2007.

2. Following from the above the complaint continued, [b]ecause of concerns about Smith’s background and the source of funds he used to capitalise I-Trade…NFA commenced an investigation into I-Trade’s operations.

3. It is important to note that the complaint has failed to state that the Order of the Supreme Court is on Appeal.

4. The complaint has also failed to state that since its issue the Cease and Desist Order has not been in effect because at all material times to the date hereof it has been stayed by Order of the said Supreme Court of Jamaica. The latest stay has been granted pending the hearing of the Appeal.

5. To the extent that the complaint states that the investigations commenced out of concerns about Smith’s background and source of funds. It is important to note those concerns and the information about the source of funds are grounded in the same Judgment that is on appeal.

6. As it relates to the trading activities of David Smith. It should be clearly stated that Smith cannot trade on the I-Trade platform if he is a shareholder or otherwise has a close connection to the entity. It is not surprising therefore that there was no trading activity at the material time. His trading activity was and indeed took place on other platforms.

It is unfortunate that National Futures Association should mention the name of Smith and Olint in its complaint in the manner that it has and both parties have been advised to seek legal advice in the relevant jurisdiction as to what action if any can be taken to protect their respective reputations.

Club Member Care
For Olint TCI & David Smith

A full response to OLINT’s statement will be posted  but we can say that we find the statement very shallow as it fails to address the substantial matters raised. 

Update(July ,2008): Read our response:-  OLINT’S Hollow Response