All content of David Marchant

Bank of Bermuda settles Cash 4 Titles litigation

July 9, 2001

The Bank of Bermuda has settled two lawsuits filed on behalf of victims of the Cash 4 Titles Ponzi scheme, whose losses have been estimated at up to $300 million.The settlement requires the bank to pay up to 50 per cent of "actual losses" suffered by participants in the Cash 4 Titles scheme, according to a press release issued on July 9, 2001 by the Bank of Bermuda.

Incriminating FIBG documents

July 4, 2001

In the public interest, we have posted two new documents on our web-site about the First International Bank of Grenada, which can be downloaded from www.offshorebusiness.com/fibgpage.htm.   Both documents are emails that were sent last year, one from FIBG founder Van Brink to Tai Hastey on March 28, 2001 and the other from British barrister Lawrence Jones to Brink on June 8, 2000.

How to get around Bermuda’s 60:40 rule without breaking sweat

June 30, 2001

The farcical nature of the Bermuda law that is supposed to restrict foreign ownership of local companies to 40 per cent was exposed this month in a transaction regarding Bermuda Commercial Bank.On June 15, 2001, BCB announced that Netherlands Antilles-registered First Curacao International Bank N. V. had increased its shareholding from 33.74 per cent to 48.08 per cent of common shares.

Imperial Consolidated founders take back control of hotel

June 30, 2001

Imperial Consolidated Group founders Lincoln Fraser and Jared Brook have bought a vacant hotel in Morecambe, England that was the primary cause of their financial problems a few years ago. They bought the Midland Hotel through a UK-based firm they control called Kalber Leisure Ltd. for between GBP350,000 and GBP500,000 (US$496,000-US$708,000) on June 11, 2001, according to the local press.

UK Official Receiver declines to halt Grant-St. James bankruptcy

June 30, 2001

Since last month's story about clients of Nevis-based Global Dominion Financial Services being unable to redeem their investments, OffshoreAlert has discovered that the firm's head is an undischarged bankrupt in the UK.Nicolas Eugene Grant-St. James, 38, who was a clothes salesman prior to going into offshore services, was declared bankrupt at the High Court in London on June 16, 1998.

Would-be investor in Resource Underwriters accused of fraud

June 30, 2001

The potential embarrassment that Bermuda avoided by not granting a license to Robin Spencer-Arscott's Resource Underwriters in 1997 has been hammered home by an SEC lawsuit filed in the United States.The man whom Spencer-Arscott claimed was providing Resource's $30 million start-up capital, New York State-based Steven Blumhagen, has been accused of masterminding a $12 million investment fraud.Steven D. Blumhagen and his wife, Susan, who are both 50, are defendants in a civil lawsuit filed last year at the United States District Court for the Western District of New York.

Revocation of bank licenses in Grenada, Bahamas, Cayman and St. Vincent

June 30, 2001

Regulators in Grenada have revoked the licenses of six more offshore banks, at least two of which were linked to the First International Bank of Grenada and stopped operating months ago.The banks are Anglo-American Limited, Rahab Trust and Management, Wellington Bank and Trust, Caribbean Merchant Bank, Crown Meridian Bank and Bern Savings Bank.

Police investigate collapse of Atlas Securities

June 30, 2001

Police are investigating Wayne Turner and his son, Scott, for allegedly misappropriating an estimated $8 million from clients of Atlas Securities Inc., of the Turks & Caicos Islands.TCI police began an investigation after a KPMG audit apparently turned up evidence that the Turners had used client funds to cover margin calls relating to their personal trading accounts.

Third Cash 4 Titles lawsuit filed against Bank of Bermuda

June 30, 2001

Another civil lawsuit has been filed in the United States against the Bank of Bermuda in relation to the Cash 4 Titles Ponzi scheme that collapsed in 1999 with debts estimated at $300 million.The lawsuit was filed on behalf of more than 170 plaintiffs from various parts of the United States at the Circuit Court of Shelby County, Alabama on April 26, 2001.

David Voth cleared of impeding tax evasion inquiry

June 30, 2001

Canadian offshore advisor David Voth has been found not guilty by a provincial court of failing to comply with Revenue Canada's requests to see his financial records. Judge Bria Huculuk ruled on April 6, 2001 that the Crown had not proven "beyond a reasonable doubt" that Voth, 42, had the criminal intent of deliberately avoiding compliance, reported a local newspaper.

Fund manager Ian Renert signed documents in names of pet geese, claims SEC

June 30, 2001

Investment advisor Ian Renert has been portrayed in a lawsuit as a bungling fraudster who genuinely believes that bank debenture trading programs exist and who signed mutual fund documents in the names of his pet geese.Renert, who controlled 36 mutual fund firms that were mostly incorporated in the Bahamas, has been accused of defrauding at least 850 investors who invested $22 million from June, 1997 to April, 1999.

First Ecom.com buys Bank of Bermuda out of FEDS

June 30, 2001

Loss-making First Ecom.com Inc. announced on June 19, 2001 that it had acquired the 50 per cent of the shares of First Ecommerce Data Services Ltd. that it did not already own from the Bank of Bermuda for $4.25 million.

Judgment entered against client of Terry Neal’s Exchange Bank and Trust

June 30, 2001

A client of Exchange Bank and Trust, which is operated illegally in Nevis by Terry Neal-controlled Nevis American Trust Company, has lost a stock fraud lawsuit filed by the SEC in the United States.Judgments were entered against Stephen C. Sayre, Independent Financial Reports Inc. and Silver Screen Industries Inc. at the US District Court for the Central District of California on May 24, 2001.

Businessmen indicted over Evergreen Security alleged fraud

June 30, 2001

Three businessmen have been criminally indicted in the United States for allegedly stealing $27.7 million from British Virgin Islands-registered  mutual fund Evergreen Security Ltd.William J. Zylka, James P. Conroy and Martin W. Boelens Jr. were each charged with two or more counts of Grand Larceny at the Supreme Court of the State of New York on June 7, 2001.

DIAK Bank sued for alleged fraud

June 30, 2001

A Grenada-registered bank that is operated from St. Vincent without a license is being sued for alleged fraud in the United States.DIAK Bank and one of its directors, Kenneth R. Lagonia, are both defendants in a lawsuit filed at the US District Court for the District of Montana on January 17, 2001.

Sham insurer run by Harris Organization sued by victims

June 30, 2001

A sham insurer operated by The Harris Organization financial services group of Panama is being sued by creditors of Lifeblood Biomedical Inc., which is in bankruptcy in the United States.Threshold Insurance Services Ltd. has been accused of providing "fictitious insurance coverage" for about $10 million of Promissory Notes issued by Lifeblood Medical, which itself was a sham firm.

UPS and Overseas Partners celebrate tax court decision

June 30, 2001

A US appeals court has overturned a 1999 decision that a reinsurance program operated by UPS and Bermuda-based Overseas Partners Ltd. amounted to tax evasion.The Eleventh Circuit Court of Appeals said the reinsurance program, which covered extra package insurance for UPS clients, was not a "sham transaction", as determined by the IRS and Tax Court.

Marc Harris clients imprisoned for tax evasion

June 30, 2001

Marc Harris clients Tony Vigna and his son, Joseph, have been sentenced to prison terms of 24 months and 18 months, respectively, at the U. S. District Court for the Southern District of Florida after previously pleading guilty to tax evasion.

Tri-West courier arrested while carrying $4.5 million

June 30, 2001

Tri-West Investment Club, which raised approximately $50 million from more than 6,000 people by promising monthly returns of ten per cent, has stopped payments after its founder was arrested in Mexico.Alyn Richard Waage, 55, was arrested carrying $4.5 million in cashiers' checks and money orders after he landed at Puerto Vallarta on a leased Lear Jet in April, according to international press reports.

John McGarrity given bail and an ankle bracelet

June 30, 2001

Former Bermuda and Bahamas insurance businessman John Keith McGarrity is currently out on bail and wearing an ankle bracelet around Tampa, Florida after being arrested in Texas on May 31.McGarrity was detained after entering the US on a fake passport in Houston, according to a regulatory source.

Meridian Investment Bank principal accused of fraud

June 30, 2001

A civil fraud lawsuit has been filed in Florida against a former plumber who is a principal of Grenada-registered Meridian Investment Bank. Sheldon Mickelson was named as a defendant in a lawsuit filed at the Seventeenth Judicial Circuit of Florida for Broward County on June 12, 2001. Plaintiffs Atul Bisaria and Deventra Sharma claim that Mickelson and two co-defendants, Mario C. Turcotte and Arthur Godin, defrauded them in a land deal.

Elderly client claims Sabourin and Sun cleaned her out

June 30, 2001

A 61-year-old woman is suing Canada-based offshore provider Peter Sabourin to recover CDN$876,451 that was allegedly defrauded from her trading account, leaving her destitute.Judith Laiken claims that Sabourin, who is described in court filings as a former school janitor, wiped out her entire account within six months of it being opened in March, 1999.

Lines Overseas Management paid $50,000 in 1997 to settle client lawsuit

June 30, 2001

Bermuda-based investment firm Lines Overseas Management and a former employee at its office in the Cayman Islands paid $50,000 in 1997 to settle a lawsuit brought by a disgruntled client, we can disclose.LOM and Andrew C. McAlpine were accused of fraud and mismanagement by Plaintiffs Vokoban Corporation and VAM International, which opened a $500,000 brokerage account with LOM in 1996.

International Risk Management Group fighting $200 m lawsuit

June 30, 2001

Captive manager International Risk Management (Bermuda) Ltd. is fighting a $200 million lawsuit filed in the United States by British-based minerals giant Rio Tinto PLC.In the lawsuit, IRMBL has been accused of mismanaging Rio Tinto's Bermuda-registered captive, Three Crowns Insurance Company Ltd., by failing to obtain adequate reinsurance coverage.Other defendants are Three Crown's reinsurance brokers: Minet Ltd., Alexander & Alexander of California Inc., Jardine Insurance Brokers Inc., Emett & Chandler Inc., Aon Risk Services Inc. of Northern California Insurance Services and Aon Corporation.

Stirling Cooke shareholders approve name change

June 30, 2001

Stirling Cooke Brown's shareholders voted at its AGM on May 23 to approve changing the firm's name to Atlantic Star Insurance Company Ltd. - a move which was disclosed two months ago in InsideBermuda. The make-over is part of a continuing attempt by the company to rid itself of the stench of its founders Nicholas Brown and Mark Cooke.

Sentinel investigators slam Bott and Associates

June 30, 2001

Insurance management firm Bott and Associates has been strongly criticized by Bermuda's Registrar of Companies for its lack of help with an investigation into Sentinel Insurance Company.In an affidavit filed at a U. S. Bankruptcy Court, Jeremy Cox stated that Sentinel's Bermuda representative had shown "a disturbing lack of co-operation" with an inquiry into what appears to have been a massive fraud.

XL Capital controls 18.5% of Mutual Risk Management following deal

June 30, 2001

XL Capital is now by far the biggest shareholder in Mutual Risk Management following an XL-led $112 million financing deal that saved the troubled firm from having its ratings lowered.As of June 15, 2001, XL Capital was the beneficial shareholder of 18.5 per cent of MRM's common, according to a recent filing with the SEC.

British Trade & Commerce Bank sued in Tennessee

June 30, 2001

Dominica-based British Trade and Commerce Ltd., which went into receivership earlier this year, has been named as a defendant in a lawsuit filed in the United States.The lawsuit was filed by Global 3000 LLP, a Delaware Limited Partnership, and Herbert Beck at the U. S. District Court for the Eastern District of Tennessee on June 14, 2001.

Ken Dart lawsuit halted pending Isle of Man settlement

June 30, 2001

A civil racketeering lawsuit in which a Russian industrial firm was seeking $150 million against Cayman resident Ken Dart, Dart Management Inc. and two of its employees has been stayed pending a settlement.

Hurlstone brothers slammed by liquidators of Cayman construction firm

June 30, 2001

The liquidators of one of Cayman's biggest construction firms have issued a scathing report alleging greed, incompetence and misappropriation of corporate funds on the part of it's directors.Christopher Johnson and John Dinan, of PricewaterhouseCoopers, accused brothers Robert Hurlstone, 50, and John Hurlstone, 46, of misappropriating so much money that Hurlstone Construction Ltd. was rendered hopelessly insolvent by 1994.

Insider Talking: June 30, 2001

June 30, 2001

The First International Bank of Grenada loaned $30,000 to the wife of Grenada's then chief regulator, Michael Creft, so that she could buy a car and another $50,000 to the then President of the Grenada Bar Association, Reynold Benjamin, according to a document sent to OffshoreAlert; Dean Cantrell and Marcel Deinnet snap up domains in names of countries in the Bermuda-Caribbean region, fraud complaint filed against 'offshore banker' Douglas Castle, 72-year-old convicted fraudster is back in business, SEC continues trend of failing to menaingfully punish accused fraudsters, First Ecom.com Inc. acquires half of First Ecommerce Data Services Ltd. that it did not already own, Antigua gaming outfit World Sports Exchange Ltd. sues County Savings Association over three checks that allegedly bounced, First American International Bank becomes latest offshore bank to be operated in Nevis without a license by Global Dominion Financial Services, and Latvia-based Paritate Bank appears to be in financial trouble.

Six more bank licenses revoked in Grenada

June 25, 2001

Regulators in Grenada have revoked the licenses of six more offshore banks, at least two of which were linked to the First International Bank of Grenada and stopped operating months ago.   The banks are Anglo-American Limited, Rahab Trust and Management, Wellington Bank and Trust, Caribbean Merchant Bank, Crown Meridian Bank and Bern Savings.

Clients of Marc Harris imprisoned in Florida

June 13, 2001

Marc Harris clients Tony Vigna and his son, Joseph, have been sentenced to prison terms of 24 months and 18 months, respectively, at the US District Court for the Southern District of Florida after previously pleading guilty to tax evasion.

SEC sues Ian Renert and Hawthorne-Sterling

June 9, 2001

The Securities & Exchange Commission has filed a civil lawsuit against US-based Ian Laurence Renert and his unregistered, Bahamas-based mutual fund group Hawthorne-Sterling & Co., for an alleged $22 million fraud.   As part of the complaint, an emergency order freezing the assets of both parties was granted on June 7, 2001 by the US District Court in Connecticut.

Nevis-based offshore provider is an undischarged bankrupt in the UK

June 7, 2001

OffshoreAlert can today confirm that the man who runs Global Dominion Financial Services in Nevis, whose approximately 200 clients are unable to redeem investments of more than US$6 million, is currently an undischarged bankrupt in the United Kingdom.   Former clothes salesman Nicolas Grant-St. James was declared bankrupt in the UK High Court on June 16, 1998 (Case number 2849 of 1998) and is due to be discharged, by expiry of time, in nine days time on 16 June 2001.

$50,000 reward for arrest of Stephen Cohen

June 5, 2001

US businessman Gary Kremen has offered a US$50,000 reward for information leading to the arrest of Stephen Michael Cohen, whom a US court recently ruled had stolen the domain name 'sex.com' from Kremen and subsequently made millions of dollars from it. An arrest warrant was issued against Cohen on March 2, 2001 after he failed to turn over details relating to his assets. On April 3, 2001, Kremen was awarded $65 million against Cohen by a Federal Court in California.

John McGarrity arrested in Texas

June 4, 2001

John Keith McGarrity, who is a former insurance officer in both Bermuda and the Bahamas, was arrested on May 31 in Houston, Texas after entering the United States on a fake passport, according to a US regulatory source.   A bond hearing was held on Friday, June 1 and we do not yet know whether he was released or remanded in custody.

First Ecom.com moves into oil and gas as losses mount

May 31, 2001

E-commerce firm First Ecom.com, whose principal shareholders include the Bank of Bermuda, clients of Bermuda-based investment firm Lines Overseas Management and various offshore entities, is fast becoming a lemon of gargantuan proportions. Faced with unrelentingly dire operating results, the firm took the drastic measure in May of announcing that it was using some of the $28 million of capital that it still has left to buy a Nevada-registered oil and gas exploration company called Gasco Energy Inc.

Imperial Consolidated changes web-site and postpones deposition

May 31, 2001

OffshoreAlert's investigation into the Imperial Consolidated Group reached high farce in May when the firm gave a number of Pythonesque answers to questions that we submitted to its UK-based Public Relations firm, Luther Pendragon. Perhaps the most comical response was a claim that it was prevented by UK law from disclosing the qualifications and experience of a 25-year-old man listed as General Manager of Grenada-based Imperium Bank.

Suisse Security Bank & Trust hearings put on hold to mid-June, 2001

May 31, 2001

Suisse Security Bank & Trust's fight to get back its Bahamas banking license and have the Central Bank Governor held in contempt of court for suspending and then revoking it is on hold until the judge handling the case returns from vacation on June 10, OffshoreAlert has been told.

Burdett Streeter sued for alleged fraud in the California

May 31, 2001

A man who at one time was listed as a Director of Grenada-registered Meridian Investment Bank has been accused of defrauding 59-year-old twin sisters out of $550,000 in a civil lawsuit filed in the United States. California-based Burdett Hale Streeter is alleged to have conned the women out of their savings by selling them into a "High Yield Investment Program" and other schemes that were described as "risk free".

John Wayne Zidar placed in custody pending trial

May 31, 2001

John Wayne Zidar and four others who were allegedly involved in a multi-million dollar investment fraud that was heavily promoted in Bermuda, as well as other countries, were arrested in April and are currently being held in custody after being criminally indicted at the U. S. District Court for Western Washington on March 28, 2001.

Indicted ex-client of John Mathewson linked to Nevis trust company

May 31, 2001

A man who is under criminal indictment in the United States for alleged money laundering and fraud is no longer involved with Nevis-based Guardian Trust Company, said the firm's manager, Jessica Huggins. Even though one of Guardian's web-sites is still registered to Baron D. Abboud, of Omaha, Nebraska, Huggins said: "He no longer has anything to do with the company."

Offshore firms defendants in new lawsuit against Grenada bank

May 31, 2001

Bermuda-based investment firm Lines Overseas Management and Turks & Caicos Islands-based RBC Dominion Securities are among 72 defendants in a civil fraud lawsuit filed in the United States by clients of Cambridge International Bank & Trust, of Grenada. They are in good company, with fellow defendants including household names such as J&H Marsh McLennan and Lloyds TSB Bank (Isle of Man).

Global Dominion clients unable to redeem investments

May 31, 2001

About 200 people who invested more than $6 million through Nevis-based Global Dominion Financial Services are unable to redeem their investments, OffshoreAlert can reveal. One investor, a 39-year-old disabled woman residing in Washington State, is due to have her house repossessed on June 24, 2001 because she cannot meet her mortgage payments.

Indictment left Clarendon MGA ‘too depressed’ to work

May 31, 2001

A former Managing General Agent for the Clarendon Insurance Group and business associate of Stirling Cooke who claims that a criminal indictment left him too depressed to work is suing an insurer for stopping his disability payments. David R. Sanz, 39, claims that he is still incapacitated even though he was acquitted of racketeering, grant theft and fraud by a jury in Florida more than two years ago.

Gulf Union Bank settles lawsuit brought against former US athlete

May 31, 2001

The liquidators of Gulf Union Bank (Bahamas) Ltd. have reached an out of court settlement with a former professional athlete in the United States who borrowed money from the bank. Fred D. Barnett Jr., who played in the National Football League between 1990 and 1997 for the Philadelphia Eagles and Miami Dolphins, had received a loan of about $70,000 from the bank to buy a sports car, said a bank representative.

Another dubious Grenada bank run by an American dentist

May 31, 2001

OffshoreAlert has come across another dubious Grenada-registered offshore bank that is operated by an American dentist. Lincoln Investment Bank Ltd., which is run by Dr. Thomas E. Miller, of North Platte, Nebraska, has been offering depositors annual interest of up to 144 per cent.

Bahamas arbitrators issue award against Robin Cotterell client

May 31, 2001

A Bahamas arbitration tribunal has awarded nearly $500,000 against a Nevis-registered entity managed by Robin Cotterell on behalf of American fugitive Joseph Andrew Mann. The award was handed down on February 21, 2001 in favor of Nevada-registered Basic Capital Management for breach of contract against International Depository Trust Corp.

Application to liquidate American International Bank

May 31, 2001

Regulators have applied to the High Court of Antigua to remove Edward St. Clair Smith as Receiver of American International Bank and change the bank's status from receivership to liquidation. St. Clair-Smith is opposing the action on the grounds that the bank can still be sold as a going concern and that there is a reputable Caribbean company interested in buying it, said a source.