Finance Minister Dr Omar Davies and the state-run Financial Services Commission (FSC) have refused to comment on Errol Ennis’ lambasting of the FSC for its raid on foreign currency trader Olint Corporation last year.

A terse “No comment” was Davies’ response when approached by the Observer on Wednesday evening moments after he spoke at Mayberry Investments’ monthly investors forum held at the Knutsford Court Hotel in Kingston.

The FSC’s communications officer, Nadine Newsome, when contacted yesterday, said, “It is not appropriate for the FSC to comment on Mr Ennis’ position”.

Ennis, who is also a minister of state for agriculture, described the raid by agents of the FSC and the Financial Investigation Division (FID) as “a vulgar abuse of state power and highly reflective of the actions of a totalitarian state”.

In a letter to the editor published in this Wednesday’s Business Observer, Ennis also charged that the raid was designed to destroy the high-interest investment club and the reputation of its founder, David Smith.

On March 3 and 6 last year, the FSC and FID executed search warrants at the premises of Olint and Lewfam Investments and Trading Limited where they seized books, statements of accounts, records and other documents.

The FSC said that based on its review of the documents seized, it issued cease and desist orders to both firms, requiring them to stop conducting all securities business and investment advice business, and from advertising themselves as carrying out securities business and investment advice business within the meaning of the Securities Act.

Olint challenged the FSC order and won a stay of execution in the Supreme Court last November.

In his letter, Ennis said that the FSC’s cease and desist order “was somewhat akin to brute force when it was clear that the intended effect of the raid, to create a run on the company’s office, did not materialise”.

He described the raid as a “Gestapo-like invasion”, saying it was “nothing more than the action of a bunch of economic luddites, scared and uncertain of a bright new world”.

Ennis also argued that while foreign exchange trading had some inflation impact, it should be encouraged “as a possible boon to the Jamaican economy”.

Earlier this week, Davies warned Jamaicans who put money in high-yield alternative investment schemes that they were doing so at their own risk.

During his presentation at the Mayberry forum, Davies reiterated his position on the high-yield schemes. While making it clear that he was not going after anyone, Davies questioned the methods used by the investment schemes, which are reported to pay 10 per cent interest monthly.

“I am not calling any names, but I am interested in what they are doing, so are the regulators,” said Davies.

“What are the areas in which they invest that produce those yields?” he asked.