Priority to Olint’s US investors

Deadline extended for Olint investors to submit claims

BY DESMIOND ALLEN Executive Editor — Operations ?allend@jamaicaobserver.com

Tuesday, April 26, 2011

UNITED States-based investors in the Olint entities will get first bite when the funds are released, the US Government has said. The federal government also announced it was extending the deadline for Olint investors to submit claims for recovery of their funds, portions of which are frozen.

A new deadline has not yet been indicated by the US Attorney’s Office handling the matter but victim-witness specialist Elizabeth Medina, who is receiving claims, said investigators needed more time to review the information and for her office to properly advise the court regarding victims’ status.

In a letter to investors, Medina said “the federal government is continuing to investigate the operations of all these (Olint) entities and is working to recover funds to return to injured investors”.

But Medina stressed that the United States could not release any seized funds to victims “until there is a resolution and an order of forfeiture entered in the United States’ favour”, an indication that investors based in the US are first in line to get the funds.

Thriving alternative investment schemes offering upwards of 10 per

cent interest per month suddenly crashed in mid-2008, following local and international action that resulted in the freezing of investment funds estimated to run into billions of dollars.

The biggest trader to be hit was Olint TCI operated by Jamaican David Smith. But the fall of that outfit dragged down many feeder agents who had been collecting money from “members” and investing it with Olint.

Known widely in Jamaica as unregistered financial organisations (UFOs), the investment arrangement, eventually discovered to be a Ponzi scheme, duped even religious organisations, two of the most wellknown being LEWFAM and Faith International Investment.

Smith pleaded guilty to four counts of wire fraud, one count of conspiracy to commit money laundering, and 18 counts of money laundering on March 20, 2011, as part of a plea agreement in the Federal District Court of Orlando, Florida. Sentencing is set for June 16, 2011.

The Jamaican Government assisted with information in the case which was investigated by the US Immigration and Customs Enforcement, Homeland Security Investigations, Internal Revenue Service, and the Federal Bureau of Investigation.

Medina invited investors in Smith’s Overseas Locket International Corporation (“OLINT”), OLINT Corporation, OLINT TCI and TCI FX Traders to contact her office at usaflm.david_smith_ponzi@usdoj.gov where they should fill out a form asking for details of their investment.

In the letter to investors, Medina said: “Once I’ve entered your contact information in the Victim Notification System, you will receive further updates regarding the case.”

Victim Information Sheet requires information such as:

• E-mail address, daytime telephone number and mailing address of investor.

• Name of entity to which funds were sent for investment and date(s).

• Amount invested in OLINT, OLINT Corporation, OLINT TCI, TCI FX Traders, Ltd or feeder club (US dollars).

• If applicable, name and address of operator(s) of feeder club.

• Description of how investor deposited his/her funds, eg personal cheque, money order, wire transfer, and documentary evidence of such payments.

• List of all withdrawals, redemptions, and encashments made in any form out of investor’s account(s), whether transferred, transmitted or paid by another party.

• Description of how investor learned about David Smith.

• Name of the person(s)/entity who solicited investor to invest with David Smith.

• Copies of any documents investor received from OLINT, OLINT Corporation, OLINT TCI, TCI FX Traders, Ltd, or its representatives.

Medina can also be reached at the US Attorney’s Office, 501 W Church St, S300, Orlando, Florida 32805.

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COMMENTS (20)

Trevor Dawes
4/26/2011

@ Sean H., I agree with you but when someone is doing something that contravenes the laws of the land it's not enough to simply warn folks about it but arrest the lawbreaker. Regarding Allen Stanford and Bernie Madoff, how many Jamaicans did they defraud of their money? This goes back to my earlier post: the US prosecuted both Madoff and Stanford and both are doing time in US prisons. They also prosecuted Smith and he'll be doing time. Why didn't the GOJ prosecute Smith?

Godfrey McAllister
4/26/2011

Excellent article Desmond... except for the inaccurate deduction that formed the backbone of your headline. The Association of Concerned Olint Members (ACOM) received clarity on the issue of priority not being given to any specific group of Olint Members late in 2010. After reading your article I conferred with Elizabeth Medina who concurred with me that there is absolutely no logical link between what she said, and your deduction that US-based Olint Members will be prioritized. Please correct.

N Manley Blythe
4/26/2011

@ Sean H.
How would you respond to Froggy D, especially "The Jamaican government up to this day has not even considered investigating Olint's operations in Jamaica for fear of what they will have to reveal,"?
The US prosecuted so they get to decide. Once again, thanks to the US for holding our criminals accountable. Thanks USA and Bruce and Peter (MOU) and the Police for the reduction in murders. Thank you all!

Nicolas Henry
4/26/2011

@Wharf dog. Dam if the Gov do Dam if the Gov don't. Aren't you the same people that only trust what the USA does? Aren't you the same people that believe only the USA can investigate Jamaica? Aren't you the same people that think the USA is looking out for Jamaica interest, and that's one of the reason why they sent for DUDUS? Now the USA investigated and slapped Jamaica in the face, telling you all, the people in the USA will get their monies first, why are you and other now crying? Kiss teeth.

Wharf Dawg
4/26/2011

And there we have it.. When the case was brought against Smith by the DOJ.. Our Government, did nothing, said nothing. They did not seek to be a party in the case against Smith. And the people of Jamaica accepted that as being ok. Now that the case has been settled they are still not saying anything. Wonder why the JLP feels they have no obligation to help those who are owed monies by OLINT? Could it be influence peddling at work?

Sean H.
4/26/2011

@garfield anthony
If people are waiting for the US to do something that they should do themselves then they truly deserve nothing!
@Trevor Dawes
The GOJ warned against these schemes but the warnings were not heeded. Same foolishness happens when hurricanes are upon us. The "deaf ears" people then turn around to the government blaming and expecting to be compensated.
*
How come no one is asking about Allen Stanford or Bernie Madoff? Those were real big ( multi-billion $) ponzis !!

Trevor Dawes
4/26/2011

The question that needs to be asked regarding David Smith and Olint is how is the the TCI and US governments were both able to successfully charge and convict Smith and his outfit for fraud and deception while the GOJ could not? Yes, I already know the answer and all the other Ponzi schemers in Ja. are still living in their homes while investors still get the short end of the stick. Where's the outrage against the GOJ and the politicians who allow this?

Brad Kerr
4/26/2011

@ Nervous investor, the US get's priority because their government did something about OLINT. What did our govt do? Nothing! Even after his guioty pleas in the US this govt still have not brought charges agains a man that rob the citizen of Jamaica to live high off the hog. Talk about constitutional rights..I guess that applied to one man.

Froggy D
4/26/2011

Well, the US did all the work and so deserve first dibs. The Turk and Caicos deserves to get compensated before Jamaica as they led the rest to prosecute OLINT. The Jamaican government up to this day has not even considered investigating OLINT's operations in Jamaica for fear of what they will have to reveal, thus Jamaican investors will get zilch. The local investors can take legal action if they have the will to do so. They should sue the government.

garfield anthony
4/26/2011

Wonder if there is any possibility that Uncle Sam might step into the Cash Plus affair also to help Jamaicans, since Uncle Bruce and his cronies are doing nothing. god bless the U.S.A.

johnny gordon
4/26/2011

Did anyone notice how quickly the court proceedings with this Olint case was pushed thru the system in the USA? For some reason we do not have that capability of bringing high profile cases of this magnitude to a quick resolution in JA. Was the Cash Plus guy ever charged, or were his (ill-gotten) assets even yet identified? Our investigative, prosecution and trial systems are so severely burdened and inefficient, that is why cases like these are avoided.

ESTEBAN AGOSTO REID
4/26/2011

So true, Mr. Dawes !! So true !!

Sean H.
4/26/2011

@Chuck Emanuel
The US would not give a damn if there were no US based investors. You notice that there is no interest in Cash Plus ...

Brad Kerr
4/26/2011

Thanks to the US government David Smith is being held accountable. Carlos Hill is still walking around freely. The Irony of this situation is that US govt will be seeking to refund monies to US based / Amercan investors in OLINT. What has this govt done, they have not even proffered an indictment against the man. Mr. Smith is free to serve his time in the US and back to Jamaica pick right where he left off.. As we all know he had connections and thus, must have ssome funds stashed here in Jamaic

Ray Stennett
4/26/2011

This is shaping up to be a mini scandal for some reputable folks! They went in early and got back deposit and interest. They were the ones who solicited others to join, then this. Let the chips fall where it may. Those who benefited illegally should pay.

nervous investor
4/26/2011

This has to be a nonsense. This was a Caribbean thing at its root ... Jamaica, Turks, St Lucia, Panama etc ... not a US thing. How can the US citizens get PRIORITY ?????

Trevor Dawes
4/26/2011

Can't say I'm surprised that American investors will be favoured to get their money first from Olint. After all, Smith was tried in a Federal court and convicted and thus this decision. The J'can gov't did not press any charges against Smith and Olint so J'can investors can only hope that the US authorities will do them the favour the GOJ should have done them. J'cans - getting shafted by Ponzi schemers and their own gov't., why am I not surprised?

Mi ak
4/26/2011

followed by forfeiture orders. Unless there is more that the author didn't disclose, then i would say that the headline is incorrect.

Mi ak
4/26/2011

What a hataclaps now, all the feeder clubs must be running scared!.
I take issue with the author's assessment with the following:
“until there is a resolution and an order of forfeiture entered in the United States’ favour”
is not an indication that US victims will be favored. It is the US govt, aka the federal govt. through the US Attorney's office, as opposed to a state (Florida for e.g.), that is pursuing the matter. A resolution in favor of the US simply means successful prosecution and f

Chuck Emanuel
4/26/2011

Thanks again to the U.S. Government for its indictment of these home grown criminal outfits and their fraudulent benefactors. Hopefully, there will be more indictments and a requirement that all political parties who benefited from political contributions of this criminal organization return the monies laundered.

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Priority to Olint’s US investors