Olint raided – Authorities shut down offices in Turks and Caicos, Miami
published by Jamaica Gleaner: Wednesday | July 16, 2008
A joint team of United States and Turks and Caicos law enforcement officers reportedly raided the offices of multibillion-dollar investment club Olint Corporation on those islands yesterday.
The Gleaner learnt yesterday that Olint’s offices in Miami, Florida, were also ordered closed by the US authorities who removed computers and files from both locations.
Documents belonging to Olint’s principal, David Smith, were also taken from his home.
A source close to the case told The Gleaner that Smith’s assets had also been frozen by the authorities in Turks and Caicos.
A close friend of Smith said he was not in Turks and Caicos when the authorities arrived there.
“He got wind that they were going there, so he wasn’t there when they arrived,” the friend said.
The friend said that, in addition to Smith facing pressure from the US government, the Olint head’s mother had been receiving bomb threats in the last week.
Minister of Finance and the Public Service, Audley Shaw declined to say anything about the reports coming out of Turks and Caicos last night.
“I’m not going to comment at this stage because it is an operation in another island that I have no information about,” Shaw said.
On Monday, Olint advised its investors here that its New Kingston offices would be closed to the public until further notice.
Problems
The source claimed Olint’s most recent problems started two weeks ago when it sought to wire US$200 million through a prominent Jamaican bank. The bank reported the suspicious activity to the authorities and an investigation followed.
Olint has been facing a string of legal problems since 2006 when the Financial Services Commission (FSC) served a cease-and-desist order on the entity. On November 3, 2006, the court granted a stay of execution of the commission’s cease-and-desist order until March 26 last year when the appeals ofOlint and LewFam would be heard by the court. It was also ordered that there should be no increase in the membership of Olint until the appeal was heard.
On December 24, the FSC was vindicated when the court held that the operations of Olint were in breach of the provisions of the Securities Act. This through its dealing in securities and engaging in the participation of a profit-sharing agreement, issuing investment contracts, and providing advice to potential investors without the required licences and registration.
The court held that LewFam was in breach of the Securities Act in performing the functions of a dealer’s representative or investment adviser’s representative without the required registration under the Securities Act.
Cease-and-desist
The court also found that the commission’s issuance of the cease-and-desist order was correct and directed that the stay of execution of the order was ended.
While the authorities awaited the decision of the court, Olint carried its operations off-shore and outside the immediate jurisdiction of the Jamaican authorities.
Olint appealed the ruling of the Supreme Court and was granted a stay of execution until the appeal was heard in February this year.
In May, the National Com-mercial Bank was also barred from closing three Olint accounts until an appeal was also heard.
Last month, Smith was named in an investigation of another company by a US-based indepen-dent regulatory body for suspicious activity. Smith was named as principal of the company and was alleged to have contributed close to 100 per cent of its capital.
8 responses so far ↓
Dominion Power // July 17, 2008 at 9:59 pm
Many bulls surround DS and Olint;
strong bulls of Bashan encircle DS and Olint.
Roaring lions tearing their prey
open their mouths wide against DS and Olint.
DS is poured out like water,
and all DS bones are out of joint.
Ds heart has turned to wax;
it has melted away within him.
DS strength is dried up like a potsherd,
and his tongue sticks to the roof of his mouth;
you lay him in the dust of death.
Dogs have surrounded DS;
a band of evil men has encircled DS,
they have pierced his hands and his feet.
DS can count all his bones;
people stare and gloat over DS.
They divide DS garments among them
and cast lots for his clothing.
But you, O LORD, be not far off;
O DS Strength, come quickly to help DS
Deliver DS life and his Forex Trading from the sword, Banks , Medias, and All spirits of Jealously ALL who want to uphold poverty in high places and DS precious life from the power of the dogs.
Rescue DS and Olint from the mouth of the lions;
save DS and Olint from the horns of the wild oxen.
Repent All Whoredom // July 17, 2008 at 11:21 pm
Is it a selected person or persons in Turks prompted by special groups/individual who has vested interest or malicious interest against DS and Olint who ordered this investigation?
OR is this a smoke screen to get the pressure off Jamaica Local banks?
Concerned // July 18, 2008 at 2:46 pm
Be anxious for nothing but through prayer and supplication with thanksgiving let your request be known unto God.
God is still in control. He will make a way fro us and David Smith who has helped all of us including Jamaica.
I think it would make more sense if Jamaica turned its finances over to David and make some money for all of us. The poor would benefit as well. Crime would go down and standard of living high. Wi love fight gainst too much.
God is a God of Peace. Who said we all can’t be rich. God says His plan for us is to prosper…
no?
he didn’t say just politicians and MlC
Hold on…………
Concerned // July 18, 2008 at 2:56 pm
Olint customers need to get together and pray for David. He needs our support as well.
Everton // July 18, 2008 at 9:52 pm
My prayers goes up for you David. I am sure you will slew Goliath.Club members let us all rally around our champion,now is the time he needs our support.
DL // July 22, 2008 at 6:00 am
all who know DS know that he is a honest and noble man….all is not lost…..
VGR2100 // August 1, 2008 at 4:39 pm
David Smith/OLINT, May Daisy, LewFam and all other investment clubs of Jamaica need lawyers with the securities laws experience and expertise like those lawyers who represent
George Soros/ Soros Endowment Fund Management and The Open Society Institute;
Christopher Hohn/The Children Investment Fund (TCI) and The Children Investment Fund Foundation; to prevent the authorities to continue to abuse their rights under the
Investment Company Act of 1940.
Note also that other competitors in Jamaica competing with investment clubs are (1) Morgan Stanley engaged in bond issues in seeking to raise funds for (2) the Bruce Golding Government of Jamaica (the other competitor).
Morgan Stanley has a lot of experience having to do with “cease and desist” orders placed on itself by the SEC in the past. Hence, it can help the Bruce Golding government and others to destroy the investment clubs because it knows their weaknesses of not having lawyers with a wealth of prior experience and expertise securities laws.
Peruse the SEC’s website on “cease and desist” orders and administration of procedures applied to an area of an investment company to protect investors money after an area (not all) of the investment company is issued a “case and desist” order complete with administration of procedures to protect investors’ moneys.
This is not being done in Jamaica. Hence, the investment clubs of Jamaica are being abused owing to the above-mentioned weakness of not having lawyers who are experienced in securities laws of the SEC (USA) and the Financial Services Authority (United Kingdom).
Someone who know David Smith and the principals of the other investment clubs, please pass the above educational information to them
Peruse for yourself. Remember, some people do want you to educate yourself independently of their manufacturing of rumours and hearsay.
VGR2100 // August 2, 2008 at 6:18 am
Before they accept new members, Investment Clubs are known to practice Money Laundering Regulations ( See example below from the ProShare Investment Clubs United Kingdom):
Investment clubs have been hit hard by the recent crack-down on money laundering, as many brokers are now requiring clubs to submit pages of paperwork and supporting documents just to keep their account open. The Financial Services Authority has provided the answers to your most pressing questions and supplied contact details below if you would like further information.
Why do I need to prove my identity?
Since 1994, when the government introduced the Money Laundering Regulations, financial services firms have been required to have procedures in place to prevent money laundering. The following information aims to help you understand why you have been asked to prove your identity and explains our role in fighting financial crime.
New – ‘Fighting Crime & Terrorism: we need your help’ The FSA has launched a joint campaign with Her Majesty’s Treasury, law enforcement agencies and the financial services industry. The aim is to explain to consumers how they can help combat money laundering, crime and terrorism by providing evidence of their identity to financial services providers. The campaign includes simple leaflets and posters which will be distributed to customers by banks, building societies, IFAs, insurance companies, investment companies etc.
What is money laundering?
Criminals have to find a way of making the money they get from their criminal activities “clean”. They try to launder their “dirty money” by getting it into the financial system without detection or arousing suspicion. If they can get their “dirty money” into the financial system they can then transfer it between different bank accounts or financial products in the UK or abroad, or use it to buy goods and services. The idea is to make the “dirty money” look like it has come from a legitimate source. Criminals try to make it as hard as possible for the police to connect the money with its criminal past. The “clean” money is often used to fund further crimes, including acts of terrorism.
So why am I being asked to prove my identity?
Criminals won’t use their real name or address to buy financial products or services or open a bank account – it would be too easy to trace the money back to them. So, they use false identities and addresses. They may even try to buy a product or open an account using your identity. This is why financial services firms must check to make sure they “know their customer” before they agree to open an account or allow you to buy their financial products or services.
But my financial services firm knows me.
You may wonder why, after having been with a financial services firm for many years, you are being asked to prove your identity. Financial services firms must take reasonable steps to find out who their customers are by getting enough information about them to confirm that they are who they claim to be. By checking each time you buy a new product or open a new account, they are making sure that no one except you is using your identity. Some financial services firms have recently started asking their customers to prove their identity even though they are not applying for new products or services. This is because they are checking those customers who did not need to prove their identity because they became customers before the Money Laundering Regulations were in place, and those who became customers when the checks were not as effective as they are today.
What kind of identification do financial firms need to see?
You will need to show that you are who you say you are and that you live where you say you live.
Financial services firms look to the Guidance Notes issued by the Joint Money Laundering Steering Group for practical guidance in applying the Money Laundering Regulations. The Guidance Notes give examples of what identification is best.
Usually, the best documents to prove your identity are:
* your passport; or
* your driving licence; or
* your Inland Revenue Tax Notification; or
* your benefits book issued by Jobcentre Plus or The Pension Service (though these books are in the process of being phased out).
The best documents to prove your address are usually:
* a recent local authority tax bill; or
* a recent utility bill; or
* a bank, building society or credit union statement or passbook; or
* a recent original mortgage statement, a local council rent card or tenancy agreement.
Official documents are preferred because they are more difficult to forge. However, firms must have procedures in place to deal with exceptional circumstances where the customer cannot reasonably be expected to provide these proofs of identity and address. If you do not have the proof of identity or address the financial services firm asks for, then you can ask them what other kinds of identification documents they accept. If necessary, you can ask for a senior manager who is authorised to make decisions to consider your application.
Please remember though, the Money Laundering Regulations require a financial services firm to verify your identity and to keep copies of the documentation you give them. If it is not possible to verify your identity, then by law the financial services firm is not able to provide or continue to provide you with its products or services.
What’s the FSA’s role in combating financial crime?
The Financial Services and Markets Act 2000 (the Act) introduces a statutory objective to reduce financial crime. To meet this objective, the Act gives the FSA the power to make and enforce rules that apply to the firms we regulate. In particular, we can make rules to ensure financial services firms are not used for money laundering by terrorists and criminals. Also, our powers allow us to prosecute financial services firms if they do not follow the Money Laundering Regulations.
The approach we have taken in making our money laundering rules is to complement the existing law by making rules that are parallel to, but separate from, the Money Laundering Regulations. Our rules emphasise the requirement to “know your customer”. We have not issued any rules that say what specific information a firm needs to get. Our rules simply require a firm to show that it has taken reasonable steps to know its customer. Remember, if you cannot provide the usual forms of identification, the firm should have procedures for dealing with exceptional cases.
You can help prevent crime by:
* Keeping your financial information and identity documents safe.
* Reporting any suspicions you have about financial crime to the police.
If you have any further questions you can always contact the FSA Consumer Contact Centre .
Further sources of information
The FSA’s money laundering rules
You can download the Money Laundering Regulations 1993 free from HM Stationery Office website or buy a copy from:
The Stationery Office Ltd which has shops in Belfast, Cardiff, London, Birmingham, Edinburgh and Manchester.
Tel: 0870 600 5522
http://www.tso.co.uk
For information and enquiries about the Joint Money Laundering Steering Group’s Guidance Notes for the Financial Sector contact:
Joint Money Laundering Steering Group
Pinners Hall
105-108 Old Broad Street London EC2N 1EX
Tel: 020 7216 8863
http://www.jmlsg.org.uk
To get a copy of Proving Your Identity booklet published by the banking industry’s trade body contact:
British Bankers’ Association
Pinners Hall
105-108 Old Broad Street
London EC2N 1EX
Tel: 020 7216 8800
http://www.bba.org.uk