Olint Assets Frozen!..What Should Clients Do?

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The Financial Crimes Unit (FCII) of the Royal Turks and Turks and Caicos Islands Police Force, seized the assets of the Alternative Investment Scheme, Olint, yesterday.

[The Turks and Caicos FCII revealed that they began a probe into suspicious activities of the Foreign Exchange Club (Alternative Investment Scheme) approximately two (2) months ago. As a result of their findings, the Turks and Caicos Supreme Court ordered Olint's assets frozen.]

Olint's assets are said to be worth between USD $600-800 million.

Olint moved to the Turks and Caicos Islands about two (2) years ago after running into problems with the Jamaican Financial Services Commission (FSC), re operating in Jamaica without a securities dealers license.

(The FSC is the body which regulates the securities, insurance and private pensions industries in Jamaica.)

Olint then claimed that they weren't dealing in securities, but were trading in Foreign Exchange. But the FSC claimed that since they were collecting monies to invest on their clients' behalf, that they were dealing in securities.]

About one (1) month ago, Olint placed restrictions on how often their clients could request payments. Clients have also been experiencing lengthy delays in getting back funds.

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The Royal Turks and Caicos Islands Police seized computers and documents from the offices of Olint and searched the homes of founder and owner, David Smith.

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Olint closed it offices in Jamaica, yesterday, as a result of a bomb scare.

Two (2) weeks ago, there were signs of trouble brewing for the company, when it wasn't able to meet its monthly payments to clients.

Founder and owner, David Smith, claimed that this was as a result of due diligence being carried out on the company by Financial Regulators in the USA.

(Olint's trading partner,i-Trade FX LLC along with Ingrid Loiten, May Daisy, Deutsche Bank Trust Company Americas and Turks & Caicos Banking Co. Ltd.Trade, are facing a  USD $20 million lawsuit by Steve Palmer of F1 Investment in Florida. The lawsuit was filed on June 26, 2007, for breach of contract.)

The Jamaican financial community is actively watching this situation to assess the extent of the possible fall-out in the Jamaican economy, that may result from this action taken by the Turks and Caicos Supreme Court.

[It is said that the purchasing power of many middle and upper middle class Jamaicans, was greatly increased (they bought new houses and top-of-the line vehicles, and extended present houses), as a result of their investment in Olint.]

The Turks and Caicos police have confirmed that David Smith has not been arrested and is free to leave the Turks and Caicos Islands.

Hmmh!

Interesting huh?...I'm sure that there are quite a few people today, who are pondering the wisdom of the Royal Turks and Caicos Islands Police Force, in allowing this.

...And are fretting re the status of their monies in Olint.

Well I'm going to say to them:

1) Please don't panic..but keep on top of the news regarding Olint.

Your next steps will be largely dependent on whether or not you still believe that David Smith will come through for you and will return your money.

(If worst comes to worst, a temporary manager will be appointed for Olint and you will be apportioned money in the fairest way that he/she sees fit.)

2) You may also consider meeting and sticking together, as a group, to determine what your next steps should be

3) You should also realize that you have the following options open to you, if you are convinced that David Smith will not come through for you:

a) Contacting the FSC in Jamaica to find out the status of investigations into Olint in the Turks and Caicos Islands. (However, they have a pending court case against Olint and may be scanty with information.)

b) Should you not be able to get any information from the Jamaican FSC,  you may try contacting the  Financial Crimes Unit (FCII) of the Royal Turks and Caicos Islands Police Force, to find out the status of the investigations and what your next steps should be.

(The phone number of the Headquarters for the Turks and Caicos Police is: 946-2499 and their email is: police_hq@gov.tc .

The following website also gives contact information for government officials and agencies in the Turks and Caicos Islands: http://www.turksandcaicos.tc/government/.)

c) Filing a joint suit against the company, as was done by some clients of the failed Alternative Investment Scheme, Cash Plus, to retrieve your money.

I wish all Olint clients, all the best, in getting back the monies owed you!

Please note that the above suggestions do not substitute for advice from your attorney or financial advisor.

Gillian

Sources Include:

1) Radio Programme, "Cover Story", Nationwide Radio, July 15, 2008.

2) Television Jamaica Nightly News at 7:00  and 10:00p.m., July 15,2008

3) Article, "F1 Investments sues May Daisy, I Trade et al", on website: Real Investments for Life, July 6, 2008.

4) Article, "Green Card Politicians": section "Wynter and the FSC caught off base", by Mark Wignall, Jamaica Observer, January 14, 2007