All content of David Marchant

Colombia seeks evidence from Mutual Benefits Corp. for money laundering investigation

January 31, 2004

Article based on an application to collect evidence for a criminal investigation into alleged money laundering - pursuant to a request for judicial assistance from Colombia - that was filed at federal court in the USA on January 9, 2004. Individuals and businesses mentioned in the request for assistance include Arturo Delgado Florez and Mutual Benefits Corporation.

Trinidad & Tobago seeks evidence in Florida for fraud investigation

January 31, 2004

Article based on an application to collect evidence for a criminal investigation into alleged fraud - pursuant to a request for judicial assistance from Trinidad & Tobago - that was filed at federal court in the USA on October 24, 2003. Individuals and businesses mentioned in the request for assistance include Telecommunication Services of Trinidad and Tobago Ltd., Scotia Bank, Clyde Joseph, Maureen Scott, Aline McLean Jones, Cedric Cole, Ameritec Commercial Trading, Bank Atlantic, Intromicro, Ocean Bank, and USA Intercell.

Legal battle for Terry Neal group’s gold and silver

January 31, 2004

A legal battle is taking place in Oregon for possession of gold and silver bars and coins that were seized during a raid on the offices of companies associated with offshore provider Terry Neal. The United States Government is seeking to take permanent possession of the property, worth approximately $225,000 at current prices.

Capital Z seeks to block Superior National/Health Net settlement

January 31, 2004

The Capital Z Group has been accused of attempting to "derail" a $132 million litigation settlement as part of a scheme to "extort" $45 million from the settling parties. The allegations were made in recent filings at the U. S. Bankruptcy Court for the Central District of California, where SNTL Corp., formerly Superior National Insurance Group Inc., filed for Chapter 11 bankruptcy protection on April 26, 2000.

Sentinel Insurance has no assets, ex-president has bankruptcy plan rejected

January 31, 2004

Bermuda-registered Sentinel Insurance Company Ltd., which collapsed in 2001, has "substantial debts" and "virtually no assets whatsoever", according to its provisional liquidator, Jeremy Cox. Cox, who is Bermuda's Registrar of Companies, commented on the indebtedness of Sentinel in a court filing at the U. S. Bankruptcy Court for the Northern District of Georgia on December 1, 2003.

Newt Utopia: The Duh!!! Diligence Squads …

January 31, 2004

The Duh!!! Diligence Squads; Bank of Belize; Global Bank of Commerce; US Brokers - Confiscate Offshore Assets and Close Accounts; E*TRADE; AG Edwards; and Retribution… please!

Ratings agency warns about becoming dependent on offshore reinsurers

January 31, 2004

A financial ratings agency has warned direct writers of U.S. individual life insurance policies about relying too much on offshore reinsurers. U. S. insurers are "becoming increasingly reliant on offshore reinsurance to transfer off of their balance sheets the growing reserve strains associated with statutory reserve requirements" stated Moody's Investors Service in a press release on January 15, 2004 to announce a new report on the subject.

‘Knock, Knock! Who’s there? Someone to see your share register!!!’

January 31, 2004

Many of us have heard variations of the old joke about how many attorneys, doctors, etc. it takes to change a light bulb. InsideBermuda has a new version: How many representatives of Bermuda-based Orbis Investment Management Ltd. does it take before they allow a member of the public to view their share register? Answer: One to take the inquiry, one to refuse it, one to give a ridiculous interpretation of the law, one to field an inquiry from an investigative journalist, one to field an inquiry from a regulator, and one to capitulate.

Montaque Securities seeks to enforce settlement

January 31, 2004

Bahamas-based investment firm Montaque Securities International Ltd. has taken further legal action against a former client for the alleged non-payment of a settlement in an earlier lawsuit. Under the settlement, Janet Amore was required to pay MSI $60,000 on or before December 1, 2003, according to a petition filed by MSI at New York State Supreme Court on January 23, 2004.

IPOC Fund President resigns after criminal past is disclosed

January 31, 2004

The founding president/director of a Bermuda-registered open-ended mutual fund has resigned after it was disclosed that he had served a prison term in Germany in 1997-99 for fraud and embezzlement. Vidya Sharma, apparently a former Merrill Lynch banker, stepped down from IPOC International Growth Fund Ltd. in October of last year after his criminal conviction came out during court proceedings involving the Fund in the British Virgin Islands.

Imperial Consolidated victims sue Ansbacher for US$54 million

January 31, 2004

Nearly 500 victims of the Imperial Consolidated fraud have filed a lawsuit in which they seek to hold offshore provider Ansbacher responsible for their entire losses of over £30 million (US$54 million). The complaint was filed against Ansbacher (Bahamas) Ltd. at the Bahamas Supreme Court on January 30, 2004 by 486 plaintiffs located in several countries.

MRM sues John Hancock for allegedly causing its collapse

January 31, 2004

Mutual Risk Management has filed a lawsuit against one of the non-paying reinsurers that it blames for causing the cash-flow problems that led to the group's collapse. MRM is seeking compensatory and punitive damages against John Hancock Life Insurance Company, formerly John Hancock Mutual Life Insurance Company, of Boston, Massachusetts.

Citco slammed by Lancer Group Receiver

January 31, 2004

An offshore fund administrator has been accused of "impeding" the investigation in the United States into the $600 million collapse of the Lancer group of hedge funds. Citco Fund Services (U.S.A.) Inc. has refused to turn over records concerning BVI-registered Lancer Offshore Inc. and The OmniFund Ltd., which its Netherlands Antilles affiliate administered.

Canadian regulator warns against Bermuda ‘bank’

January 31, 2004

A Canadian regulatory agency has issued a warning against a sham bank doing business as "Bermuda Credit Re-Insurance Bank Ltd." The Office of the Superintendent of Financial Institutions published its warning against BCRB on December 18, 2003.

Bermuda firms affected by $600 m hedge fund collapse

January 31, 2004

Several Bermuda-registered companies or their clients have been affected by the failure of a hedge fund group which allegedly defrauded its investors of more than $600 million. Subsidiaries or affiliates of the Bank of Bermuda, Bank of Butterfield, Conyers Dill & Pearman, Lines Overseas Management, and the Meridian Group are on the service list for filings at federal court in Miami.

US Gov’t seeks to seize Bahamas property

January 31, 2004

The United States government is seeking ownership of property in the Bahamas that it alleges was bought with the proceeds of crime by a client of local law firm Graham Thompson & Co. It filed a civil forfeiture complaint at the U. S. District Court for the Western District of Washington on January 12, 2004.

Insurance firms seek independent Trustee for AlphaStar Insurance Group

January 31, 2004

Three United States-based firms have asked a court to appoint an independent Bankruptcy Trustee for AlphaStar Insurance Group Ltd. to prevent further fraud. The current management of AlphaStar and 11 of its subsidiaries, which all filed for Chapter 11 bankruptcy protection in New York on December 15, 2003, cannot be trusted, it was alleged.

Cayman insurer accuses bank of withholding funds

January 31, 2004

A Cayman Islands-registered exempted insurer has accused a United States bank of withholding $467,582 of its funds.Star Insurance Company (Cayman) Ltd. claims to have been trying to gain access to the funds in six trust accounts at Wachovia Bank since March 4, 2003.

Jury finds former Canadian Space Agency engineer guilty of fraud involving offshore bank

January 24, 2004

Former Canadian Space Agency engineer Serdar Kalaycioglu has been found guilty of fraud involving an offshore bank and a bogus mutual fund following a jury trial in the United States that spanned seven weeks. After 21 days of hearing testimony and four days of deliberations, the jury found 40-year-old Kalaycioglu guilty of 11 counts of wire fraud and one count of conspiracy to commit wire fraud at the U. S. District Court for the Southern District of Florida.

Marc Harris sentencing delayed

January 23, 2004

The sentencing date for convicted offshore financial services provider Marc Harris has been put back from February 6 to April 30, 2004. An order postponing sentencing was issued at the U. S. District Court for the Southern District of Florida on January 16, 2004 following a request from the United States Probation Office.

UK law firm sues Matrix International regarding apparent asset recovery scam

January 22, 2004

A British law firm has taken legal action against the operators of an asset recovery scheme that has targeted victims of the fraudulently-operated Imperial Consolidated Group. Pinsents filed a lawsuit against Matrix International (Management) Ltd., d.b.a. Matrix Investigations, and Barclays Bank Plc at the UK High Court on December 16, 2003.

Class action lawsuits filed against Parmalat

January 17, 2004

Two class action lawsuits have been filed in the United States against the Parmalat group, its officers and professional service providers. They were filed at the U. S. District Court for the Southern District of New York, one on January 5, 2004 and the other one day later and are likely to be consolidated at some stage.

Five ex-FIBG insiders indicted in Oregon, four arrested

January 7, 2004

Five insiders with the First International Bank of Grenada have been criminally indicted in the United States for allegedly perpetrating a scam that cost investors more than $206 million. Gilbert Allen Ziegler, a.k.a. Van Arthur Brink, a U. S. national formerly of Oregon and Hawaii, now living in Uganda; Douglas C. Ferguson, a U. S. national formerly of Oregon; Laurent E. Barnabe, a.k.a. Larry Barnabe, a Canadian national residing in Las Vegas, Nevada; Rita L. Regale, a.k.a. Rita L. Brunges, a U. S. national formerly of Hawaii; and Robert J. Skirving, a U. S. national residing in Oregon, collectively face 146 counts at the U. S. District Court for the District of Oregon.

Banc Caribe investigation turns to Florida

December 31, 2003

Article based on an application to collect evidence - pursuant to a request for judicial assistance from Germany - that was granted at the U. S. District Court for the Northern District of Alabama on November 26, 2003. Individuals and businesses mentioned in the request for assistance include SouthTrust Bank, Ferdinand Hoischen, Jonny Franke, Banc Caribe Ltd., AIF Bank & Trust Ltd., American Investment & Finance Corp., American Investment & Finance Service Corp., Orion Technology & Commerce Corporation, Orion Technology, Handelsgesellschaft GmbH, and Pershing Securities Ltd.

Parmalat is not a Cayman problem, says local representative

December 31, 2003

Nearly two years after the collapse of Enron, the collapse of the Parmalat food group has once again shed an unwelcome spotlight on the offshore sector of the Cayman Islands. Although it had nowhere near the level of Enron's more than 600 Cayman-registered subsidiaries, Parmalat nonetheless had a handful of subsidiaries or affiliated entities incorporated on the island, including an exempted mutual fund, and media reports have suggested one or more of them may have been used to hide assets for a group whose insolvency may be as much as €10 billion (US$12.6 billion).

Prosecutors push for sentencing in bizarre case involving Yank Barry

December 31, 2003

The U. S. Government has filed a motion asking a federal judge to sentence Yank Barry, an offshore promoter, and James Collins, a former Executive Director of the Texas Department of Criminal Justice. More than 28 months after they were both convicted of conspiracy, bribery and money laundering at federal court in Houston, Texas on August 20, 2001, Barry and Collins have still not been sentenced.

Australia seeks US bank records for fraud investigation into former tax officer

December 31, 2003

Article based on an application to collect evidence for a criminal investigation into alleged fraud by a former employee of the Australian Tax Office - pursuant to a request for judicial assistance from Australia - that was filed at federal court in the USA on February 4, 2003. Individuals and businesses mentioned in the request for assistance include Gordon Munro Walker, Bank One, Cal Fed Bank, Pacific Trust Bank, Union Bank of California, Washington Mutual, Wells Fargo Bank, Western Financial Bank, and Bank of America. 

UK seeks evidence in Florida for terrorism investigation

December 31, 2003

Article based on an application to collect evidence for a criminal investigation into Larry Claxton, a.k.a. David Sangster, for suspected terrorism - pursuant to a request for judicial assistance by the United Kingdom - that was filed at federal court in the USA on June 25, 2003.

Romania seeks account records from M&T Bank in New York for investigation into credit card fraud

December 31, 2003

Article based on an application to collect evidence for a criminal investigation into credit card fraud - pursuant to a request for judicial assistance from Romania - that was filed at federal court in the USA on August 6, 2003. Individuals and businesses mentioned in the request for assistance include John Paul Pender and M&T Bank.

Austria requests SouthTrust Bank records for investigation into alleged tax evasion

December 31, 2003

Article based on an application to collect evidence for a criminal investigation into alleged tax evasion - pursuant to a request for judicial assistance from Austria - that was filed at federal court in the USA on September 17, 2003. Individuals and businesses mentioned in the request for assistance include Doris Reschitzoeger and Southtrust Bank.

Overseas Partners close to settling class action lawsuits

December 31, 2003

Bermuda-based Overseas Partners Ltd. says it has reached a "tentative settlement" in two class action lawsuits filed on behalf of customers of its affiliate, United Parcel Service. The lawsuits were filed in the United States in 1999 and 2000 by parties who alleged racketeering, claiming they had been sold sham insurance in a UPS shipper's risk program that was reinsured by OPL.

Jerome Schneider attorney quits, alleging unpaid fees

December 31, 2003

Offshore promoter Jerome Schneider has a new attorney to handle his defense against criminal fraud charges after his previous one resigned over allegedly unpaid legal fees totaling $350,000. Permission for Joseph M. Burton, of Duane Morris law firm, to withdraw as Schneider's counsel was granted on December 12, 2003 at the U. S. District Court for the Northern District of California.

OffshoreAlert’s 3rd Due Diligence & Asset Recovery Symposium

December 31, 2003

OffshoreAlert is pleased to announce that dates have been set for our 2004 Due Diligence & Asset Recovery Symposium. The event will be held over three days on October 13-15, 2004 at The Biltmore Hotel, in Coral Gables, Florida.

Biotech firm drops lawsuit against Lines Overseas Management

December 31, 2003

A racketeering lawsuit filed against Bermuda-based investment group Lines Overseas Management has been withdrawn by the plaintiff six months after it was filed. The case against defendants LOM Securities (Bermuda) Ltd., LOM (Holdings) Ltd. and the group's president, Brian Lines, was dismissed at Nevada federal court on November 14, 2003.

Insider Talking: December 31, 2003

December 31, 2003

Investors who were defrauded in the Cash 4 Titles Ponzi scheme can expect to receive a dividend of approximately one-third of their recognized losses, according to Philip Stenger, the SEC Receiver responsible for administering claims; Four offshore companies and their registered agents have been trying to prevent their local regulator in the Turks & Caicos Islands from having access to their records; Also at the TCI Supreme Court, John E. Rutley Jr. has filed a lawsuit against Timothy Prudhoe, Christian Papachristou, Melbourne Wilson and Stephen Wilson, sued as and on behalf of the partners of McLeans law firm, formerly McLean McNally; Financial criminals operating in six offshore centers in the Bermuda-Caribbean region can breathe more easily next year with news that the Miami, Florida-based White-Collar Crime Investigation Team, is being disbanded on March 31, 2004 due to the withdrawal of funding by the United Kingdom government; The capacity of sales people for UK-based due diligence information provider World-Check to tell outrageous lies to potential customers in an attempt to secure a sale appears to know no bounds. FirstRand, the South African parent of Ansbacher (Cayman) Ltd., has agreed to pay 25 per cent of the amount being sought by the Irish government to cover the costs of an offshore tax investigation carried out by a panel known as the McCracken Tribunal, reported the Irish Examiner newspaper on December 19, 2003; and The Australian Securities & Investments Commission has obtained an interim order appointing a receiver over Queensland-based Comcash Australasia Pty Ltd., which it claims was operating an unregistered investment scheme in conjunction with SMC Corporation, of Dominica.

Japanese insurer awarded $1 b against Fortress Re

December 31, 2003

An arbitration panel sitting in New York has awarded more than $1 billion against failed aviation reinsurance pool manager Fortress Re Inc., of North Carolina. In a decision issued on December 16, 2003, the panel found that Fortress Re and its principals, Maurice Sabbah and Kenneth Kornfeld perpetrated a massive fraud against Sompo Japan Insurance Inc.

IRS accesses records of Florida card processor

December 21, 2003

A Florida-based firm which processes card transaction payments has been ordered to turn over its records to the IRS as part of an investigation into offshore tax evasion using MasterCard, VISA and American Express. An order issued on September 11, 2003 at the U. S. District Court for the Southern District of Florida allows the IRS to serve a "John Doe" summons on Credomatic of Florida Inc., of Brickell Avenue, Miami.

AlphaStar files for Chapter 11 bankruptcy protection

December 21, 2003

Bermuda-domiciled AlphaStar Insurance Group Ltd. and 11 of its subsidiaries have applied for Chapter 11 bankruptcy protection in New York. The group is seeking breathing room while it seeks buyers for its assets, including policy-issuing subsidiary Realm National Insurance Company, for which AlphaStar "is no longer able to provide capital".

Dobb White & Co. forced into liquidation

December 15, 2003

A United Kingdom-based accounting firm accused of fraud involving an offshore bank has gone into liquidation and its two partners declared bankrupt. Orders to wind-up Dobb White & Co., of Leicester and Nottingham, in England, and bankrupt Shinder Singh Gangar and Alan White were issued by the UK High Court on December 2, 2003.

Nine indicted for allegedly defrauding Espirito Santo Bank

December 15, 2003

Nine businessmen have been criminally indicted in Florida for allegedly perpetrating an accounts receivable factoring scam which an offshore bank group claims has cost it approximately $170 million. The December 4th indictment relates to the same circumstances which led to Cayman Islands-licensed Bank Espirito Santo (International) Ltd. filing a civil lawsuit against E. S. Bankest LLC earlier this year.

Eric Witmeyer receives non-custodial sentence for conspiracy to commit tax evasion

December 9, 2003

California-based attorney Eric John Witmeyer has received a non-custodial sentence in return for helping prosecutors with their case against his co-defendant and former business partner Jerome Schneider.Witmeyer was sentenced to one-year of probation and a $10,000 fine at the U. S. District Court for the Northern District of California on October 31, 2003.

Martin Chambers receives 15-year prison sentence

December 9, 2003

Canadian attorney Martin Chambers has been sentenced to 15 years and eight months in prison for his role in an offshore money laundering scheme. Chambers, 64, was also fined $20,000 and ordered to forfeit $95,000, representing that portion of the $700,000 in cash that he took from undercover officers and agreed to launder but failed to return.

Swiss financial consultant allegedly embezzled US$4.4 m

November 30, 2003

A financial consultant operating in Switzerland embezzled approximately US$4.4 million from his clients, it has been alleged.Marek Andrzei Hrycak, a 48-year-old Polish national, is currently in prison in Bern while a criminal investigation is carried out into his activities.

Annuity & Life Re shareholders bring class action against KPMG

November 30, 2003

KPMG's operations in Bermuda, the United States and the United Kingdom are defendants in a class action lawsuit filed by shareholders of financially troubled Annuity & Life Re (Holdings) Ltd., which it audited. The complaint was filed by Communications Workers of America, and Midstream Investments Ltd. at the United States District Court for the District of Connecticut on October 23, 2003.

Marc Harris convicted of money laundering, conspiracy and tax evasion

November 30, 2003

Five and a half years after being exposed as a criminal by OffshoreAlert, offshore businessman Marc M. Harris, 38, has been found guilty of 16 counts of money laundering and tax evasion.Harris was convicted by a jury on November 24, 2003 following six days of testimony at the United States District Court for the Southern District of Florida, in Fort Lauderdale. He did not testify on his own behalf or call a single witness.

Forex ‘trader’ sues bankrupt firm for commissions on alleged profits

November 30, 2003

An offshore company which collapsed with massive losses amid allegations of fraud is being sued by a purported forex trader who claims he is owed commissions for making it a profit.Igor Toshchakov, of Los Angeles, California, filed a lawsuit against Orion International LLC, of Western Samoa, and its President, Russell B. Cline, at the U. S. District Court for the Central District of California on August 14, 2003.

Billionaire accused of washing trades through Bermuda firm

November 30, 2003

A Bermuda-based firm has been implicated in the fraudulently-trading of shares of a Nasdaq-listed medical research and manufacturing firm.I.A.T. Reinsurance Syndicate, Ltd. was allegedly used by billionaire Peter Kellogg in a series of "wash and matched trades" of securities issued by Thoratec Corp., which is based in California.

Deloitte & Touche offers $32 m to settle hedge fund lawsuit

November 30, 2003

Deloitte & Touche has offered $32 million to settle a class action lawsuit filed on behalf of shareholders of the British Virgin Islands-registered Manhattan Investment Fund who bought shares between October, 1995 and January, 2000.

$37 m award rewards fraud by General Electric captive, claims reinsurer

November 30, 2003

A United States reinsurer on the wrong end of a recent $37 million arbitration award claims that General Electric's Bermuda-based captive, EMLICO Ltd., is being rewarded for committing fraud.OneBeacon America Insurance Company, formerly known as Commercial Union Insurance Company, of Massachusetts, is seeking to overturn the June 19, 2003 arbitration ruling.

Marc Harris advised clients to destroy documents, allege prosecutors

November 10, 2003

Offshore businessman Marc Harris advised two of his United States-based clients to destroy their business records and flee to Panama in 1995 when they were being audited by the IRS, a jury in Florida heard today.Tony Vigna and his son, Joseph, took the advice, shredding and burning documents concerning their illegal refrigerant gas smuggling operation and moving to Panama, said federal prosecutor Gregory Tortella in his opening argument on the first day of what is expected to be a nine-day trial.