Articles

Fraud charges brought against three Axiom Legal Financing Fund insiders

August 21, 2020

Three UK nationals - Timothy Schools, Richard Emmett, and David Kennedy - have been criminally charged with fraud over their involvement with Cayman Islands-domiciled Axiom Legal Financing Fund, whose £100 million litigation funding-based investment scam collapsed after being exposed by OffshoreAlert eight years ago.

Despite fraud charges, Briton Simon Hooper becomes director of 8 British firms

August 19, 2020

Undeterred by fraud charges on which he is due to be tried in England next month, U.K. national Simon Hooper, who is part of an international gang of serial fraudsters previously exposed by OffshoreAlert, recently became a director of eight British firms.

Angola’s central bank sues two Cayman funds for allegedly misappropriating $25M

August 5, 2020

Banco Nacional de Angola, which is the African country's government-owned central bank, has accused two Cayman Islands investment funds - Quantum Global Opportunities Fund SP and Refund Emerging Market Fund SP - of misappropriating $25 million.

Released from prison, British fraudster now operates under new name (Sencer Orhan)

August 4, 2020

Notorious British fraudster Sencer Sevket has changed his name after being released from prison and seemingly gone into business with a member of the ruling family in Abu Dhabi, OffshoreAlert can reveal.

Cryptocurrency group Arbitrade sued in Bermuda for ‘unpaid rates’

July 22, 2020

Fraudulent cryptocurrency group Arbitrade, which purchased a seven-floor office building in Bermuda in 2018 that it has apparently never occupied, is being sued for $168,101 in allegedly unpaid "rates" by the municipal government that administers the jurisdiction's capital city of Hamilton, where the property is located.

Blockchain firm Uulala sued for indebtedness in California

July 16, 2020

Blockchain group Uulala, which 22 months ago became the first applicant to be approved to conduct an Initial Coin Offering in Bermuda despite a plethora of red flags, is being sued for alleged indebtedness in California.

Cayman regulator revokes license of Focus Administration

July 13, 2020

Citing insolvency and other regulatory issues, the Cayman Islands Monetary Authority has revoked the Full Mutual Fund Administrators License of Focus Administration Limited, effective July 8th.

Former deVere USA officers settle SEC fraud complaint

July 10, 2020

British nationals Benjamin Alderson and Bradley Hamilton have agreed to pay penalties totaling $750,000 to settle a fraud complaint by the SEC regarding their employment with investment firm deVere USA.

Cayman law firm sued by clients who claim to have lost $524K in ‘phishing scam’

July 9, 2020

Cayman Islands law firm Giglioli & Company is being sued by clients David and Michelle Holden, who claim the company's computer server was hacked and emails intercepted, causing them to be swindled out of US$523,998.

Creditors apply to wind up Cayman’s Obelisk Capital Management

June 22, 2020

Alleging "serious wrongdoing", two creditors claiming to be owed $448,333 under a loan bearing interest at 10% per month have applied to wind up Cayman Islands-based Obelisk Capital Management Ltd., which manages factoring and gold funds for Obelisk Global, whose directors include Jazeb Jones, who was previously dismissed as MD of a Cayman bank over his relationship with a client accused of committing a £50 million fraud.

Creditors apply to wind up Cayman parent of Liechtenstein’s Gable Insurance

June 17, 2020

Creditors in the British Virgin Islands, England, and Guernsey have applied to wind up the Cayman Islands parent company of insolvent Liechtenstein insurer Gable Insurance AG.

Cayman regulator revokes licenses of Atlas Re & Intrepid Re

June 16, 2020

The Cayman Islands Monetary Authority has revoked the insurance licenses of Atlas Re SPC and Intrepid Re SPC, which are both managed by USA Risk Group (Cayman) Ltd., for suspected insolvency and breaches of the jurisdiction's Insurance Law.

Malta FSA cancels licenses of three investment firms, fines two others

June 14, 2020

In a series of regulatory actions announced on Friday, the Malta Financial Services Authority cancelled the licenses of three investment firms and imposed fines on a retirement scheme and its administrator.

ABRAAJ liquidators seek discovery from US banks for Cayman proceedings to recover $385M in alleged fraud proceeds

June 12, 2020

The liquidators of ABRAAJ Investment Management Ltd. have applied to take discovery from 17 banks and a clearing house in the U.S. for "contemplated litigation" in the Cayman Islands to recover more than $385 million allegedly misappropriated by the Dubai-based ABRAAJ Group's founder, Arif Naqvi.

Bittrex & Poloniex crypto exchanges added as defendants to ‘multi-billion dollar fraud’ lawsuit

June 4, 2020

Two major U.S.-based cryptocurrency exchanges - Bittrex and Poloniex - have been added as defendants to a class action complaint that alleges crypto buyers around the world were collectively swindled out of billions of dollars in an unprecedented "criminal" price manipulation scheme.

Cayman regulator revokes license of Hinduja Bank

May 28, 2020

The Cayman Islands Monetary Authority has revoked the banking license of Hinduja Bank & Trust (Cayman) Ltd. for suspected insolvency, its Switzerland-based sole director, Gilbert Pfaeffli, not being "fit and proper", and other regulatory breaches

Intelligence firm Diligence accuses ex-CEO Nick Day of ‘outrageous legal spending’

May 21, 2020

Intelligence and investigations firm Diligence has accused its former CEO, Nick Day, of trying to "sink the business with his outrageous legal spending" after it was forced to advance him $788,377 to satisfy legal bills that he incurred at a rate of approximately $12,500 per day in the first two months of defending a lawsuit that the company brought against him for allegedly swindling it out of "millions of dollars".

Insolvent Bermuda Digicel firm files for Chapter 15 bankruptcy in New York

May 16, 2020

An insolvent Bermuda holding company within the Digicel Group, which provides mobile phone, cable television, Internet, and other communications services in the Caribbean and South Pacific, has filed for Chapter 15 recognition of its Bermuda provisional liquidation at bankruptcy court in Manhattan as part of a plan to restructure debt that totals $7.4 billion.

Blockchain firm Uulala claims ‘viability at risk’ after ‘investors seek withdrawals’

May 15, 2020

Blockchain group Uulala, which has operations in Bermuda, Canada, Mexico, and the United States, has claimed in a lawsuit that its future is "at risk" after "multiple" investors asked to withdraw "approximately $800,000" and are threatening legal action due to a "campaign of disparagement" by three former employees.

British fraudster Mark Munnelly forms new firms

May 13, 2020

British accountant Mark Munnelly, who played a leading role in a £40 million-plus investment fraud committed by the now-defunct Privilege Wealth group, has formed three new firms in England over the last three months, OffshoreAlert can reveal.

SEC sues TCA Fund Management & four Cayman funds for alleged fraud

May 11, 2020

The SEC has sued Florida-based TCA Fund Management Group, which claims to have over $500 million of assets under management, and four affiliated funds in the Cayman Islands alleging they swindled "approximately 470 investors".

Malta regulator bans service providers Karl Schranz & Christian Ellul

May 10, 2020

Accountant Karl Schranz and lawyer Christian Ellul have been banned by the Malta Financial Services Authority for their "lack of honesty and integrity".

US crypto investor sues 18-year-old for allegedly stealing $24M (when he was 15)

May 7, 2020

In a lawsuit, Los Angeles-based blockchain investor Michael Terpin has alleged that he lost "nearly $24 million of cryptocurrency" in a hack whose "evil mastermind" was "a then 15-year-old high school student" in New York who "boasted" of stealing "over $100 million worth of cryptocurrency through scores of hacks".

Guernsey regulator bans wealth managers Mark Penney and Marc Roxby

May 4, 2020

The Guernsey Financial Services Commission has fined and disqualified Mark Penney and Marc Roxby over self-dealing and misleading clients while operating failed financial services firm Criteria Wealth Management Ltd.

Cayman fund obtains $5M award against NY lawyer for Bitcoin scam

May 1, 2020

Cayman Islands-domiciled Benthos Master Fund Ltd. has obtained a $5 million arbitration award against New York attorney Aaron Etra regarding "a purported sale of Bitcoin that turned out to be a scam".

Denmark’s tax agency seeks discovery from BVI & Cayman firms for ‘$2B fraud’ litigation

April 30, 2020

Denmark's national tax agency has applied to take discovery from 21 corporate services providers in the British Virgin Islands and Cayman Islands whose clients are suspected of participating in a $2 billion tax refund fraud.

Judgment for $427K against firms involved in Bermuda/US crypto scam

April 29, 2020

A judgment for $427,552 has been entered against UAE-domiciled SION Trading and Utah-based Scotia International of Nevada for non-payment of gold and silver that was used for a cryptocurrency scam that began in Canada, moved to Bermuda, and is currently being conducted by firms in Delaware.

Antigua Ambassador Dario Item given bank license despite corporate ban

April 20, 2020

Antigua and Barbuda's banking regulator appears to have fast-tracked a licensing application by one of the country's diplomats - London-based Swiss lawyer Dario Item - after his bank in Labuan ran into regulatory problems and he received a corporate ban, OffshoreAlert can reveal.

Swan Developments becomes latest member of British fraud group to collapse

April 16, 2020

Scotland-based Swan Developments Management Limited has become the latest firm to go into liquidation that was operated by, or associated with, the notorious Swan Group of British investment fraudsters.

BVI crypto exchange Bitfinex seeks evidence from US banks for ‘$880M recovery effort’

April 15, 2020

The BVI-domiciled, Taiwan-based operator of the cryptocurrency exchange known as Bitfinex has applied to take discovery from banks in Georgia and Colorado as part of its attempt to recover $880 million that was allegedly misappropriated by Swiss firm Crypto Capital and related parties.

Bermuda target of $2B US tax fraud investigation accuses Australian lawyer of stealing $20M

April 7, 2020

Australian barrister Evatt Tamine has been accused of stealing "more than $20 million" from a Bermuda charitable trust set up by American billionaire Eugene Brockman, while the Trust itself is apparently the target of a $2 billion "tax and money laundering" investigation in the U.S., according to two court judgments.

11 class actions against 42 defendants in 16 countries alleging sale of unregistered cryptocurrencies

April 4, 2020

The cryptocurrency industry had its own 'Red Wedding' at federal court in Manhattan yesterday when 11 class action complaints alleging the sale of unregistered securities were filed against 42 defendants in the BVI, Canada, Cayman Islands, China, Estonia, Hong Kong, Israel, Japan, Malta, Seychelles, Singapore, South Africa, Switzerland, Taiwan, USA, and Vietnam.

NY-based participant in deal to buy Bermuda Commercial Bank sued again

April 2, 2020

A participant in a group that has received regulatory approval to purchase Bermuda Commercial Bank was sued by American Express two months ago over an allegedly unpaid credit card debt of $64,854 - the latest of several allegations of indebtedness against Logan Sugarman over the last 20 years.

New lawsuit against Delaware affiliate of Bermuda crypto firm Uulala

March 31, 2020

A Delaware company controlled by the California-based head of Bermuda cryptocurrency firm Uulala, Oscar Garcia, is being sued for allegedly defaulting on an agreement to pay $700,000 to settle a lawsuit brought by minority shareholder Gustavo Lopez, who claimed that Garcia swindled him.

Malta FSA cancels AIS Capital’s investment license

March 31, 2020

The Malta Financial Services Authority has cancelled the investment license of AIS Capital Management Investment Fund SICAV PLC, whose directors are Briton Paul Chandler and American/Maltese Richard Wight.

Bermuda crypto firm Arbitrade sues SION Trading for alleged fraud

March 30, 2020

Bermuda-domiciled cryptocurrency firm Arbitrade Ltd. has filed a legal action in New York against Max Barber and his firm, SION Trading FZE, of Ras Al Khaimah, alleging fraud.

Development owned by AIG CEO collapses owing $168M to Bermuda Gov’t

March 27, 2020

A "partially complete" luxury hotel and residences development on "prime real estate" in Bermuda whose principal beneficial owner is AIG CEO Brian Duperreault has gone into provisional liquidation owing at least $168 million to the local government.

Nigeria seeks US bank records for investigation into ‘$10B fraud by BVI shell entity’

March 26, 2020

Nigeria is seeking records from ten banks in the United States for a criminal investigation into an alleged $10 billion bribery and fraud scheme committed by a "shell entity" in the British Virgin Islands that was set up and operated by citizens of Ireland and the United Kingdom.

‘Virtual casino’ firm Crypto Meca has registration revoked in Isle of Man

March 24, 2020

The Isle of Man Financial Services Authority has revoked the registration of South Korea-based Crypto Meca Ltd., which solicited investors' funds last year purportedly to finance the development of a virtual casino platform that has not been launched.

Swiss banker investigated for allegedly embezzling $8.7M from Banca Raiffeisen clients

March 20, 2020

Police in Switzerland are investigating Stefano Billeter for allegedly embezzling $8.73 million from four clients while he worked for Banca Raiffeisen, in Lugano.

Peter Nygård’s insolvent Canadian clothing group files for Chapter 15 recognition in NY

March 19, 2020

The newly-appointed Receiver of former Bahamas resident Peter Nygård's Canada-based clothing group has applied for Chapter 15 recognition of the Canadian insolvency proceedings in New York.

Offshore bank sues Mastercard for ‘driving it into liquidation’ by terminating its license

March 12, 2020

Loyal Bank, of Saint Vincent and the Grenadines, is suing Mastercard for allegedly causing its liquidation by terminating its license and keeping its $1.5 million deposit as a "termination fee" after the offshore bank was charged with money laundering in the U.S.

Founder of LSE-listed, Russian online bank arrested for suspected US tax fraud

March 6, 2020

Russian businessman Oleg Tinkov has been arrested in London after being indicted for tax fraud in California for allegedly failing to disclose his $1 billion beneficial ownership of, and $199 million income from, a London Stock Exchange-listed online bank via three BVI companies when renouncing his U.S. citizenship in 2013.

‘Billion Dollar’ crypto gold firm sued for unpaid rent of $6,632

March 4, 2020

Scotia International of Nevada, which claims to own gold worth billions of dollars as part of a cryptocurrency-based investment fraud by Bermuda/Canada-domiciled Arbitrade and Delaware-domiciled Dignity Holdings, is being sued for unpaid rent of $6,632 in Utah. It's the fifth lawsuit against the SION group over the last eight months.

Fraud lawsuit filed over crypto scam group’s ‘Hands of Mandela gold casts’

February 27, 2020

A complaint alleging fraud has been filed in New York regarding a deal to sell purported "gold casts of President Nelson Mandela's hands" to the Bermuda/Canada-domiciled Arbitrade Group, whose cryptocurrency scam was exposed by OffshoreAlert last year.

Transcript shows British money launderer David Rae lied to obtain lenient sentence

February 25, 2020

A transcript of Briton David Rae's recent sentencing hearing for money laundering at federal court in New Jersey indicates that he lied to obtain leniency, that his lies went unchallenged by prosecutors, and the judge accepted them as fact.

Canadian Troy Hogg sues Hong Kong-based crypto exchange HitBTC

February 20, 2020

Canadian Troy Hogg, who perpetrated a cryptocurrency scam via his Bermuda-domiciled Arbitrade group, is suing a Hong Kong-based Bitcoin exchange known as HitBTC, alleging it has failed to redeem C$1.18 million of Bitcoin he claims to own.

Guernsey FSC fines and bans Louvre Fund Services & Directors

February 17, 2020

The Guernsey Financial Services Commission has imposed financial penalties totaling £203,000 and/or corporate bans regarding fund administrator Louvre Fund Services Limited and four of its directors, Kevin Gilligan, Charles Tracy, Derek Baudains, and Julian Lane.

Briton David Rae sentenced for money laundering in US

February 12, 2020

Despite a recommended imprisonment range of 57 to 71 months under a plea agreement, British national David Rae was sentenced at federal court in New Jersey on Friday to "time served" for money laundering and deported back to the United Kingdom.

Canadian Troy Hogg sued for fraud twice by Hollywood movie insiders

February 10, 2020

Two lawsuits alleging fraud and breach of contract regarding the movie industry in Hollywood have been filed in Los Angeles against Canadian Troy Hogg, whose scams include Bermuda cryptocurrency firm Arbitrade.