All content of David Marchant

Privy Council protects liquidators of Cayman firms from misguided debtors

November 30, 1999

The Privy Council in London has issued a ruling that limits the rights of debtors of Cayman-registered entities to seek the removal of liquidators they do not approve of. The decision represents a victory for Christopher Johnson and John Dinan, of PricewaterhouseCoopers, and a defeat for rival accounting firm Deloitte & Touche.

Elderly investor sues Harris Organization representative in Costa Rica

November 30, 1999

A criminal lawsuit has been filed against the head of the Costa Rica office of The Harris Organization financial services group after an elderly US investor claims she was unable to redeem her investment. Floyce Capmany, 72, who lives in Nevada, claims she is still owed $37,668 of a $70,000 investment she made through The Harris Organization's sales office in Costa Rica in 1998.

Stock Generation may be close to collapse

November 30, 1999

It appears that Dominica-registered Stock Generation, which operates a Ponzi scheme dressed up as an investment game that is played over the Internet, may be about to collapse. The company, whose dubious game was featured in the September edition of Offshore Alert, has, by its own admission, stopped paying out participants.

NimsTec seeks listing on NASDAQ under the name ‘i3Dx.com’

November 30, 1999

A company linked with former Bermuda Premier Sir David Gibbons is involved with a fresh attempt to raise capital for a product that has lost investors tens of millions of dollars over two decades of failure. Nevada-registered i3Dx.com, which is a front for Bermuda-based NimsTec Limited, registered 100 million shares with the SEC on November 12, 1999.

Three Bank of Bermuda officers suspended as part of Cash 4 Titles investigation

November 30, 1999

Three officers of the Bank of Bermuda (Cayman) have been suspended on full pay pending an internal investigation into the bank's links with an alleged criminal. The bank suspended Michael Day, Marc Vanmarsenille and David Spohr shortly after one of its clients, Michael Gause, was arrested in Florida on October 15.

MRM directors file to sell shares

November 30, 1999

Two directors of Mutual Risk Management - Jerry Rosenbloom and Allan Fulkerson - gave separate notice to the SEC on September 23 that they intended to each sell 20,000 of the company's shares. There has been no notification to the SEC that the shares have been sold which may indicate that the that the price dropped too steeply to meet their sell criteria.

Imperial Consolidated moves from Bahamas to Grenada after pressure from regulator

November 30, 1999

Imperial Consolidated Securities S. A. has moved its investment division to Grenada following consultations with regulators in the Bahamas, where the company is registered and physically based. The move, which was due to be completed by November 30, followed concerns about the company's involvement in the sale of unregistered securities.

Mezzanine Capital writes off $10 m of worthless German bonds

November 30, 1999

Bermuda-registered Mezzanine Capital Ltd., which appears to be involved in the manipulation of penny stocks in the US, has reported a loss of $10.57 million for the 12 months ended June 30, 1999 after writing off $10.1 million of German bonds. The company, whose shares are listed on the Bermuda Stock Exchange, had disclosed in 1998 that the bonds, which it acquired for one million of its common shares, might be worthless but did not decide to write off the investment until the current fiscal year.

Stirling Cooke applies to dismiss Odyssey Re’s amended complaint

October 31, 1999

Stirling Cooke Brown Holdings Ltd. has filed a motion to dismiss an amended RICO complaint filed against it by Odyssey Re at federal court in New York.The Bermuda-based broker/reinsurer claims that the amended complaint "contains no new causes of action against Stirling Cooke".

New-look Clarendon ends Eton Management contract

October 31, 1999

The Clarendon Insurance Group has terminated a substantial business production agreement with New York-based Eton Management, which is run by notorious businessman Martin Hoffman.

Cayman Financial Brokerage House closes amid losses and police investigation

October 31, 1999

A trading/brokerage operation known as The Cayman Financial Brokerage House Ltd. closed its doors in early October amid reports that it has heavy debts and is being investigated by local police.

Bahamas entities sued over alleged fraud

October 31, 1999

A multi-millionaire Canadian geophysicist has filed a lawsuit in Canada against Barclays Bank (Bahamas) and others claiming he was defrauded of US$1.5 million.Theodore Rozsa, who is in his eighties, claims to have been swindled out of his funds by conmen peddling a fake investment scheme and blames Barclays Bank and Swiss-based private bank Darier Hentsch et Cie for contributing to his loss through alleged negligence.

American Re claims ‘deception’ regarding coverage for Business Insurance Group

October 31, 1999

American Re has claimed it was duped into providing $175 million of workers' compensation reinsurance coverage for Superior National Insurance Company subsidiary Business Insurance Group.The allegation is contained in American Re's answer to a lawsuit brought against it and Bermuda-based Inter-Ocean Reinsurance Company by Superior National Insurance Company in the Superior Court of California.

FIBG latest: Dodgy share offerings and more ‘paper’ firms list on sham stock exchange

October 31, 1999

The latest phase of what is turning out to be one of the most extravagant offshore frauds ever involves the sale of shares over the Internet, supposedly to finance a 120-room luxury resort hotel in Grenada and an on-line casino. Investors in the resort project are "guaranteed" annual dividends of between 25-30 per cent, depending on the amount invested, even before anything has been built, while shareholders of the casino venture are promised 35 per cent annually.

Bank accounts frozen after Cash 4 Titles businessman arrested

October 31, 1999

Two weeks after an article in the September 30th edition of OffshoreAlert about a Bahamas-based mutual fund - Olympia Fund - that invests in a business known as Cash 4 Titles, C4T's funds were frozen following criminal and civil action in the United States.The problems came with the arrest in Fort Lauderdale on October 15 of Michael E. Gause, who helps to run the underlying business in which the fund invests.

Shorex ’99 to be held in Toronto

October 31, 1999

Shorex North America '99 takes place on November 8-9 at the Sheraton Center Toronto.

MRM and insiders snap up the company’s stock

October 31, 1999

Mutual Risk Management and its officers and directors have taken advantage of the recent massive collapse in the company's stock price by aggressively snapping up shares on the open market.

KPMG resigns as LaSalle Re auditor over independence issue

October 31, 1999

KPMG has resigned as auditor of LaSalle Re due to a conflict of interest.The accounting firm cited "a potential independence issue arising from a personal relationship between an officer of LaSalle Re and a member of the firm of KPMG not working on the LaSalle Re audit", stated a press release issued by the reinsurer.

Bahamas-based businessman survives ‘assassination attempt’

October 31, 1999

Bahamas-based businessman Joe Lewis, who is one of Britain's richest people, recently survived an assassination attempt in Argentina, according to a report in The Independent newspaper in London.

La Prensa newspaper charged over Harris Organization stories

October 31, 1999

La Prensa newspaper in Panama and some of its journalists have had a criminal libel brought against them after several articles on The Harris Organization financial services group.La Prensa has alleged improper links between The Harris Organization, the Attorney-General, José Antonio Sossa; and a Panamanian attorney, Carlos Jones; allegations which have been denied by the subjects of the articles.

Bank of Bermuda accounts used for on-line gaming

October 31, 1999

Links to the Internet gaming industry have embarrassed the Bank of Bermuda and contributed to the termination of its correspondent banking relationship with Swiss American Bank in Antigua. The bank, which is based in a jurisdiction that prohibits gambling, except for special events such as 'Cup Match', insists that it does not provide banking services to on-line gaming operators. However, more than a dozen gaming web-sites claiming to be licensed in Antigua and Venezuela have been informing gamblers for several months that they can open up accounts by wire transferring funds into Bank of Bermuda accounts at Citibank in New York and Midland Bank PLC in London.

Insider Talking: October 31, 1999

October 31, 1999

BaTelCo throws spanner in the works of Bahamas International Stock Exchange private placement, Cayman Islands Stock Exchange tells New Utopia to take a hike, trial in Bermuda over European family's wealth costs $600,000 per week, First International Bank of Grenada has difficulty with its math, journalists arrested in Grenada, new sham investment game appears on the Internet, and the growth of the Bahamas is detailed in a prospectus for the new Bahamas International Securities Exchange.

Rudolph Linschoten given prison sentence in California

September 30, 1999

Investors International founder Rudolph Linschoten was sentenced on September 13 to serve 60 months in prison after pleading guilty to conspiracy and securities fraud at the US District Court for the Central District of California.

Bermuda Commodities Exchange loses money for AIG

September 30, 1999

The Bermuda Commodities Exchange, which suspended trading in the first week of August, appears to have been an expensive failure for the American International Group.AIG is believed to have borne the brunt of the estimated losses of more than $2 million suffered by the experimental insurance derivatives exchange in its two -year life-span.

FIBG ‘auditor’ has no CPA licence, co-owner indicted in US

September 30, 1999

Offshore Alert can this month report further disturbing revelations about the First International Bank of Grenada that make a mockery of the island as a legitimate financial centre.One of the most shocking discoveries is that the annual financial statement filed recently by the bank with regulators was signed by a former bankrupt with a criminal record who is passing himself off as a CPA.Nevada-based accountant Kenneth Nelson Craig had his CPA licence revoked in the US in 1996 after committing an appalling number of offences, including swindling three clients out of $81,000.Equally disturbing is news that one of FIBG's owners, Roger V. Cagle, has been criminally indicted in New Jersey on charges of racketeering, bribery and conspiracy to defraud the United States.

Stock Generation Internet game: ‘So what if it’s a Ponzi scheme?’

September 30, 1999

OffshoreAlert takes a comprehensive look at the Internet-gaming pheneomenon called Stock Generation, that is growing at a rapid pace even though it appears to be a Ponzi scheme.

Inter-Ocean refutes Superior National’s ‘false’ allegations

September 30, 1999

Inside Bermuda has received a letter from Inter-Ocean President Mervin Holland in response to allegations made to the media about his company by Superior National Insurance Company President Chris Seaman.Holland was particularly upset at an article that appeared in The Royal Gazette newspaper on September 23 headlined: "Inter-Ocean tried to mug us - US insurer."

Stirling Cooke’s little-known Cayman affiliate

September 30, 1999

The Bermuda-based Stirling Cooke insurance group is a shareholder in a little-known reinsurer called Alternative Risk Reinsurance Company Limited that is registered in the Cayman Islands and managed by Mutual Risk Management (Cayman) Limited.

Details of four UK lawsuits filed against Stirling Cooke Brown Holdings

September 30, 1999

Inside Bermuda has obtained specific details about four of the seven lawsuits filed against Stirling Cooke Brown Holdings and/or related entities in the High Court of Justice, Queen's Bench Division Commercial Court, in the UK.

BVI regulator responds to judge’s ruling against The Harris Organization

September 30, 1999

In the face of an onslaught of pressure from the international community, offshore regulators have been quick to claim over the last few years that they are not havens for criminal activity.However, the proof of the pudding is, as they say, in the eating.

‘Legalized loan-sharking’ fund launched in Bahamas

September 30, 1999

A Bahamas-registered mutual fund has been set up to invest in a controversial industry in which high-interest loans are issued to low income people who use their pay checks and car titles as collateral.Some call it legalized loan-sharking, others call it a cash life-line to the poor. To investors in Olympia Fund Limited, though, it is, perhaps, best called a means to earning above-average returns.

TCI company accused of bilking Japanese firms of $1 billion

September 30, 1999

The SEC and the Commodity Futures Trading Commission this month filed separate complaints alleging securities fraud against a businessman whose Turks & Caicos Islands-registered entity racked up investment losses estimated at $1 billion.Both complaints were filed on September 13 at the U. S. District Court for the Southern District of New York against New Jersey-based Martin A. Armstrong, aged 50; Turks & Caicos Islands-registered Princeton Economics International Ltd. and Princeton Global Management Ltd.

Superior National’s aggressive tactics in dispute with Inter-Ocean Re

September 30, 1999

Industry watchers have been taken aback by the aggressive strategy adopted by Superior National Insurance Group Inc. in its $175 million contract dispute with Inter-Ocean Re and Inter-Ocean's principal shareholder, American Re-Insurance Company.Not content to wait for the outcome of arbitration proceedings that are due to be held soon in New York, Superior National filed a lawsuit against both parties in Los Angeles County Superior Court on September 7 in which they seek $200 million.

UBS (Cayman Islands) sued by former client

September 30, 1999

UBS (Cayman Islands) Ltd. is being sued for breach of trust and fiduciary duty in relation to the alleged misappropriation of $775,000 of client funds by former trust officer Barry Victor Randall.The lawsuit was filed at the Grand Court of the Cayman Islands on August 10, 1999 by Publishers Representatives Limited, suing as Trustee of the Asian Sources Retirement Plan, and Lee Sku Lee, representing beneficiaries of the plan.

Insider Talking: September 30, 1999

September 30, 1999

Dominica-registered Overseas Development Bank & Trust has yet to satisfy three judgments totalling US$1.24 million that were entered against it in favor of creditors on January 29, 1999, sham New Utopia jurisdiction claims it is launching "the New Utopia Investment Fund of the Cayman Islands", Ralph Sherman's involvement in the First International Bank of Grenada, comparisons between Van Brink's First International Bank of Grenada and Michael Randy's Canadian Trade Bank, alleged investment fraudster Brent Wagman surfaces in Panama, '60 Minutes' television show goes soft on Alexandre Konanykhine.

‘Nothing unusual’ about turn-over of Cayman bank records to US Receiver, say Cayman attorneys

August 31, 1999

Although much has been made overseas of a decision by the Grand Court of the Cayman Islands to approve a request to hand over the bank records of Euro Bank Corporation client Kenneth Taves to his US-based Receiver, there is nothing unusual about such a move. The foreign press has been lauding the deal as a break with tradition by Cayman after comments to that effect by Robb Evans, the Receiver for Kenneth Taves, his wife, Teresa; and their businesses J. K. Publications Inc., MJD Service Corp., TAL Services Inc. and their affiliates and subsidiaries.

Bermuda bows to foreign pressure, makes tax evasion an offence

August 31, 1999

Bermuda has led the way among offshore financial centres by making tax evasion an offence under its Proceeds of Crime Act. When the amendment comes into effect, which will not be before January, 2000, foreign investigating authorities such as the US government will be able to obtain bank records and other information about people charged with, or suspected of, tax evasion offences.

Inter-Ocean Re/Superior National to arbitrate $175 m contract

August 31, 1999

An arbitration between Bermuda-based Inter-Ocean Reinsurance Company and Superior National Insurance Company over a $175 million contract could take place before the end of the year. The dispute relates to coverage Inter-Ocean provided to US-based Business Insurance Group - now a subsidiary of Superior National - and 100 per cent reinsured by American Re.

Nevis drafts law to regulate offshore service providers

August 31, 1999

A final draft of the regulatory legislation providing for the supervision and licensing of offshore service providers is currently circulating in Nevis. The Service Providers Supervision Ordinance 1999 is expected to become law later this year.

Grenada Prime Minister clears FIBG of illegal acts

August 31, 1999

The massive financial scam being committed in Grenada by Canadian and American crooks has reached new levels of farce after the island's government announced that it had investigated - and cleared - the First International Bank of Grenada of any wrongdoing. Grenadian Prime Minister Keith Mitchell gave the bank a clean bill of health at a press conference held on July 23 and attended by local journalists.

Keith King in legal setback in the Isle of Man

August 31, 1999

Keith King, the head of the Nevis-based First Nevisian corporate services/stockbroking group, has suffered a setback in his latest court battle in the Isle of Man with a former client, Virginia Anne Callow. King's inactive Isle of Man company, City & International Securities, is suing Callow for US$39,717 and £13,409 (approx. US$21,695), claiming the amounts are debit balances on personal trading accounts.

Former manager of Cayman fund disciplined by SEC

August 31, 1999

US-based businessman Keith E. Walsh has reached a settlement with the SEC for illegalities in the way he ran a now defunct Cayman-registered company called CS First Boston Offshore Cash Reserve Fund. Walsh, 41, who lives in Pennsylvania, has agreed to be barred from association with any broker, dealer, investment adviser or investment company, with the right to re-apply after three years.

Insider Talking: August 31, 1999

August 31, 1999

In February, Offshore Alert reported about stock manipulation allegations involving Bermuda Stock Exchange-listed Mezzanine Capital; Viktor Kozeny, the 'Pirate of Prague' who allegedly defrauded his countrymen in the former Czechoslovakia of tens of millions of dollars before fleeing, buying an Irish passport and going to live in the Bahamas, has apparently fallen out with the Grenada government, according to Grenada Today newspaper; A letter to the editor that was published in the Caymanian Compass newspaper on August 20, 1999 caused rum amusement in knowledgeable law enforcement circles; and In the ten days after we posted the Harris Organization/OBNR libel judgment on our web-site, 638 people had downloaded the entire 17 pages, making it the most popular document on the 'Free Documents' section of our web-site.

Odyssey Re files amended complaint against Stirling Cooke et al

August 31, 1999

Odyssey Re (London) Limited has filed an amended complaint against Stirling Cooke Brown Holdings, several of its subsidiaries and other parties at the U. S. District Court for the Southern District of New York.

Aneco Re wins $35 m UK court decision against Johnson & Higgins

August 31, 1999

Aneco Reinsurance Underwriting, the Bermuda-based reinsurance group that went into liquidation in 1992, has won US$34.98 million in damages for negligent advice given by US brokerage Johnson & Higgins, reported the Financial Times on July 31, 1999. The broker was also held to be liable for the insurer's losses.

Offshore banker William Cooper escapes extradition on a technicality

August 31, 1999

An Antiguan court has decided not to extradite to the US banker William Cooper, whose banks have featured in several money laundering investigations and have a habit of failing with debts to deposits of tens of millions of dollars.

UPS offered little evidence to show it was not avoiding US taxes

August 31, 1999

Given the amount of money at stake, which could eventually come to more than $2 billion in back taxes and fines, the attempt by UPS to create an 'arm's length' reinsurance company in Bermuda appears to have been remarkably clumsy, according to Judge Ruwe's 114-page opinion. In laying the groundwork for the restructuring of its shipper's risk program in 1983, the company seems to have drawn up little or nothing in the way of documentation that could later be used to give the appearance that the change was driven by sound business reasons, rather than a desire to avoid US taxes.

Overseas Partners to lose $370 of premiums following UPS Tax Court decision

August 31, 1999

Overseas Partners Limited expects to lose about 35 per cent of its annual premium volume as a result of the US Internal Revenue Service's recent favorable tax ruling over United Parcel Service of America, whose shipper's risk program is OPL's biggest source of revenue. The annual dollar cost to OPL is likely to be in the region of $370 million in lost premiums and approximately $200 million of net income, according to the company's own estimates.

Harris Organization appeals libel decision

August 31, 1999

The Harris Organization financial services group of Panama has served official notice that it will appeal its loss of a recent libel lawsuit against Offshore Business News & Research Inc., which publishes Offshore Alert. The grounds for the appeal were not known at press time.

Transamerica wins arbitration to rescind Stirling Cooke-brokered spiral business

August 31, 1999

Stirling Cooke Brown Holdings has suffered a major setback in an arbitration held recently in London. The arbitration panel decided by three votes to nil to rescind reinsurance contracts for 1993 and 1994 that the San Francisco-based Transamerica insurance/financial services group had with Duncanson & Holt, Chubb Insurance Group and Chubb-subsidiary Federal Insurance Company.