Articles

Corrupt Antiguan ex-regulator Leroy King admits receiving bribes of $500K from fraudster Allen Stanford

February 10, 2020

Corrupt ex-Antigua financial regulator Leroy King, 74, faces up to five years in prison in the US after admitting receiving over $500,000 in cash and tickets to two Super Bowls from $7 billion fraudster Allen Stanford in return for turning a blind eye to his activities and obstructing an investigation by the SEC

Suspected fraudster Mark Nordlicht accused of ‘hiding assets’ in Cook Islands trust

February 6, 2020

In a lawsuit by two investors, suspected Platinum Partners fraudster Mark Nordlicht has been accused of "hiding" tens of millions of dollars in a Cook Islands trust and other offshore structures to make himself "judgment proof" against claims from creditors.

US investigations firm Diligence sues British ex-CEO Nick Day for ‘fraud’

January 26, 2020

US-based investigations and intelligence firm Diligence is suing its British recently-resigned CEO, Nicholas Day, for allegedly misappropriating its Swiss "subsidiary", part of a broader dispute between Diligence's majority owner, Cayman-domiciled Information Security Investment Co., and its senior management, comprising Day, in Geneva; Mike Baker, in New York, and Trefor Williams, in London.

EXPOSED: Symtomax Group’s fraudulent €12M Bond Offering

January 22, 2020

A €12 million bond offering by British nationals Minette Coetzee, a.k.a. Minette Compson, and Paul Segal via their Symtomax Group for a purported medical cannabis production facility in Portugal is fraudulent, OffshoreAlert can reveal. The scheme involves entities and individuals in the BVI, Canada, Dubai, England, Gibraltar, Morocco, Netherlands, Panama, Portugal, Scotland, Spain, South Africa, and Switzerland.

Fraud charges filed over Cayman firm’s $30M ICO

January 17, 2020

Criminal and regulatory charges alleging fraud have been brought in New Jersey against Canadian Boaz Manor and Israeli attorney Edith Pardo regarding a $30 million Initial Coin Offering by BCT Inc. SEZC, of the Cayman Islands.

Petition to wind up British £40M fraud firm Privilege Wealth Plc

January 7, 2020

Nearly two years after their appointment and having run out of cash, the Joint Administrators of Britain's Privilege Wealth Plc have applied to wind up the company, which collapsed after its £40 million-plus investment fraud was exposed by OffshoreAlert.

SEC-targeted fund sues law firm for advising that ‘Crypto Assets are not securities’

January 2, 2020

US law firm Faegre Baker Daniels is being sued for legal malpractice for allegedly advising a cryptocurrency fund that "Crypto Assets are not securities", only for the Fund - controlled by Timothy Enneking - to be later targeted by the SEC, eventually paying $200,000 to settle an Enforcement Action.

Arab nations claim ‘hundreds of millions of dollars are missing’ from Cayman Islands fund

December 30, 2019

In an application to take discovery from 12 US banks, a financial institution owned by six Arab nations claims that "hundreds of millions of dollars are missing" from a Cayman Islands investment fund that was set up to invest in "port-related assets around the world".

Briton David Rae pleads guilty to money laundering in US

December 27, 2019

U.K. national David Rae, who was exposed by OffshoreAlert in 2012 for his role in a £100 million investment fraud by Cayman Islands-domiciled Axiom Legal Financing Fund, has pleaded guilty to money laundering in New Jersey regarding unrelated health care fraud schemes.

Standard Chartered Bank sued for ‘retaliating’ against ‘Iran money laundering whistleblowers’

December 24, 2019

Two "whistleblowers" in India and England are suing the British, Dubai and New York operations of their former employer, Standard Chartered Bank, for allegedly retaliating against them for exposing "a highly sophisticated money laundering scheme on behalf of Iran".

Swiss regulator appoints investigator for Bitcoin dealer and ‘investment boutique’

December 23, 2019

Swiss regulator FINMA has announced that two unrelated firms - SASuisse Group GmbH and BrokerGroup AG - have been placed under regulatory supervision, effective December 17th.

Samuray Consulting AG suspected of ‘unauthorized activity’, warns Swiss regulator

December 20, 2019

The Swiss Financial Market Supervisory Authority has warned the public that Samuray Consulting AG - whose principal is Burhan Samuray, of Germany - is suspected of conducting unauthorized financial activity.

Swiss crypto exchange Lescovex targeted by financial regulator

December 18, 2019

The Swiss Financial Market Supervisory Authority has warned the public that cryptocurrency exchange Lescovex Exchange SA - whose principal is Spaniard Vicent Nos Ripolles - is suspected of conducting unauthorized financial activity.

HSBC agrees to pay $192M & admits tax fraud after being criminally charged by US

December 10, 2019

Switzerland-based HSBC Private Bank (Suisse) SA has agreed to pay $192 million and cooperate with tax investigations under a deferred prosecution agreement with the USA after being criminally charged with conspiracy to commit tax fraud.

Malta regulator declares E&S Consultancy ‘unfit’, cancels corporate services provider registration

November 25, 2019

The Malta Financial Services Authority has cancelled the registration of corporate services provider E&S Consultancy Limited for various regulatory breaches, including not being "fit and proper".

US affiliate of Malta bank accused of massive fraud by SEC

November 21, 2019

New York-based, Cayman Islands-administered investment adviser International Investment Group LLC, which is affiliated with Malta's IIG Bank, with both owned by a bankrupt fund in Curaçao, committed "a string of frauds to cover up tens of millions of dollars in losses", the SEC has alleged.

Denmark’s tax agency sues US pension plans that received $120M from ‘tax refund fraud’

November 20, 2019

Denmark's tax collection authority filed a complaint yesterday at federal court in New York against 14 U.S. pension plans and their advisers who allegedly received $120 million from a fraudulent tax refund scheme.

$150M lawsuit alleges crypto fraud by parties in Antigua, BVI, Hong Kong & US

November 4, 2019

A complaint for damages of $150M for alleged cryptocurrency futures trading fraud and the operation of an unlicensed money transmitting business has been filed against individuals and companies in Antigua, British Virgin Islands, Hong Kong, and the United States, including Alameda Research and FTX Trading.

U.S. acts against Swiss crypto exchange First Global Credit, now operating as PanXora

November 1, 2019

Law enforcement and regulators in the US have taken action against Swiss cryptocurrency exchange First Global Credit, which is controlled by Britons Gavin Smith and Marcie Terman and now operates as PanXora, which claims to have affiliates in the Bahamas, Cayman Islands, Gibraltar, Singapore, and UK.

Briton Simon Hooper charged with fraud – 4 years after being exposed by OffshoreAlert

October 30, 2019

Briton Simon Hooper, who was exposed as a fraudster by OffshoreAlert four years ago, has been charged with fraud in England regarding his latest firms, Rationale Asset Management Plc and Rationale Investments Ltd.

Non-attorney Paul Bilzerian banned from representing sons at Saint Kitts High Court

October 28, 2019

Paul Bilzerian - who moved to the Caribbean after being jailed and fined $62 million for securities fraud in the United States - has been barred from representing his sons - Dan and Paul Bilzerian - in civil proceedings at Saint Kitts and Nevis High Court.

US taxpayer admits fraud involving ‘offshore Swiss insurance wrapper’

October 24, 2019

A 74-year-old U.S. citizen faces up to 18 months in prison for failing to report $1.4 million in income that he earned from an "offshore Swiss 'insurance wrapper' policy".

Fraud alleged in €79M ‘security token’ dispute between Cayman firms

October 22, 2019

Cayman Islands financial advisory Outcrop Capital, which is owned by a former resident of Russia now living in Israel, claims to have been swindled out of bonds with a nominal value of €79.8 million in a "security token" deal with Russian-controlled, Cayman firm Versatile Chain.

Blockchain firm Skrumble sued in Cayman for alleged unpaid fees

October 22, 2019

A Cayman Islands affiliate of Canadian blockchain and communication technology firm Skrumble Technologies is being sued in Cayman over alleged unpaid fees owed to the operator of a special economic zone for innovators and entrepreneurs.

‘Financial crime consultant’ Kenneth Rijock defamed Israeli attorney Steven Slom, rules Miami judge

October 22, 2019

Miami-based self-described "financial crime consultant" Kenneth Rijock "falsely" accused Israeli attorney Steven Slom of involvement in serious financial crime, a Florida judge has determined.

BVI operator of Bitfinex crypto exchange seeks discovery in ‘hunt for missing $880M of client funds’

October 20, 2019

The BVI operator of Bitfinex cryptocurrency exchange, which was sued 12 days earlier for allegedly perpetrating a multi-billion dollar fraud, has applied to take discovery in California for a purported attempt to recover $880 million of client funds that its Swiss payments processor has allegedly failed to remit.

Ex-UK military personnel lost pensions in dubious Guernsey scheme, says regulator

October 19, 2019

Former UK "military personnel" were persuaded to transfer their government pensions to Guernsey-based Marlborough Pension Trustees, which then invested their assets in unsuitable "high-risk investments" that failed and distributed false net asset values that concealed losses, a regulator has claimed.

Greenberg Traurig agrees $65M payment to settle Allen Stanford fraud litigation

October 18, 2019

After seven years of defending litigation, law firm Greenberg Traurig has agreed to pay $65 million to settle a complaint that it helped fraudster Allen Stanford's offshore bank swindle thousands of investors out of $7 billion.

Insolvent Cayman discount broker OneTRADEx accused of impropriety

October 16, 2019

Insolvent Cayman Islands online discount broker OneTRADEx Ltd. allegedly illegally received $851,396 in "commissions and profit sharing" by borrowing cash from U.S. lender Stockloan Solutions using a client's assets as security without the client's "knowledge or authorization".

Mossack Fonseca sues Netflix for defamation over Panama Papers-inspired movie ‘The Laundromat’

October 15, 2019

Defunct Panama law firm Mossack Fonseca and its founders - Jürgen Mossack and Ramón Fonseca - have filed a defamation complaint against Netflix in the US, alleging that the recently-released movie 'The Laundromat' portrays them as "ruthless uncaring lawyers who are involved in money laundering, tax evasion, bribery and/or other criminal conduct".

Cayman lawyer David Marshall leaves Maples Group after arrest for alleged domestic assault

October 14, 2019

Following his arrest for allegedly violently assaulting his wife at a Miami Beach hotel, British investment funds lawyer David Marshall is no longer employed by Cayman Islands-based Maples Group, of which he was a partner.

Isle of Man’s Montpelier Trust in receivership after boss accused of diverting ‘millions of pounds’ of client funds

October 9, 2019

Following a regulator's allegation that its principal, Watkin Gittins, has diverted "millions of pounds" of client money to fund his lifestyle, Isle of Man-based Montpelier (Trust & Corporate) Services Ltd. has been forced into receivership.

Cayman lawyer David Marshall arrested in Miami Beach for domestic assault

October 8, 2019

British attorney David Marshall, a partner with Cayman Islands law firm Maples and Calder, has been arrested and criminally charged with felony aggravated battery causing "great bodily harm" in Miami Beach after allegedly violently assaulting his 15-year wife and mother of his three children in their hotel room on his birthday while drunk.

Bermuda crypto firm Arbitrade’s ‘$14B gold bullion provider’ sued again

October 8, 2019

Ras Al Khaimah-domiciled SION Trading FZE and Utah-domiciled Scotia International of Nevada Inc., which participated in an apparent pump-and-dump cryptocurrency fraud by Bermuda-domiciled Arbitrade Ltd., are being sued in the US for allegedly failing to pay for gold and silver that underpinned the scheme.

Austrian regulator issues ‘investor warning’ against British firm Cryptotrustconsulting Ltd.

October 7, 2019

The Austrian Financial Market Authority has issued an "Investor Warning" against British cryptocurrency management firm Cryptotrustconsulting Ltd., which is owned and operated by Marc Bendrat, a citizen of Germany residing in Austria.

$1.4 Trillion class action against crypto exchange Bitfinex & cryptocurrency Tether for ‘largest bubble in human history’

October 7, 2019

A class action securities fraud complaint for damages that "likely surpasses $1.4 trillion" for creating "the largest bubble in human history" has been filed against cryptocurrency exchange Bitfinex and cryptocurrency Tether, with defendants from the BVI, Hong Kong, Italy, Netherlands, Panama, Switzerland, and the US.

Mauritius bans British accountant & local lawyer whose firm provided services to drug trafficker

October 4, 2019

British chartered accountant David Gaskell and Mauritian lawyer Penny Hack, whose management firm provided services to British drug trafficker James Mulvey, have been banned as corporate officers in Mauritius.

Briton Harold Burke’s ‘venture capital’ firm taken over by Swiss regulator

October 3, 2019

Holtzbrinck Schweiz AG, which is operated by Briton Harold Burke and claims to finance start-ups, has been taken over by the Swiss Financial Market Supervisory Authority.

Bermuda reinsurance boss owed $421K by insolvent US brewing firm

October 2, 2019

The CEO of Bermuda-based reinsurer Fleming Reinsurance Ltd. - Eric Haller - is the largest unsecured creditor of a brewing company that has filed for Chapter 11 bankruptcy protection in Massachusetts. Eight Bermuda residents are among the firm's 20 largest unsecured creditors.

BVI Gov’t to sue US lawyer Lester Hyman after ‘$7.2M loss’ on failed Miami-to-BVI airline venture

September 30, 2019

Claiming a loss of $7.2M, the BVI Government disclosed in a court filing that it intends to sue its former, 30-year US-based legal representative, Lester Hyman, for suspected self-dealing regarding a failed airline venture to operate flights between the BVI and Miami.

Funds from $100M ‘binary options’ fraud laundered via BVI firms, says US regulator

September 26, 2019

An Israeli father-and-son and a resident of Germany swindled tens of thousands of investors out of more than $100M in a 'binary options' fraud, laundering much of the proceeds through two BVI firms, the US SEC has alleged in a complaint at federal court in Los Angeles.

Amicorp BVI sued over alleged $20M investment fraud by clients

September 25, 2019

British Virgin Islands-based corporate services provider Amicorp is being sued in the United States for damages of up to $20 million arising from a suspected fraud against residents of Ecuador who invested in a scheme by the 'Vanguardia Group' that involved individuals and legal entities in the Bahamas, Bermuda, BVI, Cayman Islands, and USA.

SEC accuses offshore firms of $125M investment fraud

September 19, 2019

The U. S. Securities and Exchange Commission has accused companies in the Bahamas, Cayman Islands, Cook Islands, New Zealand, Puerto Rico, Saint Vincent and the Grenadines, and the United States of participating in a $125 million investment fraud involving a group known as Mediatrix Capital.

Cayman crypto firm ICOBox sued by US regulator for ‘unregistered’ activity

September 18, 2019

Cayman Islands cryptocurrency "incubator" ICOBox and its founder, Nikolay Evdokimov, have been sued by the U.S. SEC for alleged illegal involvement in digital token offerings that raised $665 million. In a separate lawsuit last year, a former CEO of an ICOBox subsidiary claimed the group's "main shareholders" were "all funded by Russian money laundered through bitcoins and other cryptocurrencies".

Vista Holding Group AG targeted by Swiss regulator

September 18, 2019

The Swiss Financial Market Supervisory Authority has warned the public that Vista Holding Group AG is suspected of conducting unauthorized financial activity.

Crypto firm Global Trade Solutions taken over by Swiss regulator

September 15, 2019

Cryptocurrency firm Global Trade Solutions AG, which appears to be caught up in the suspected theft of $850 million from BVI-owned crypto exchange Bitfinex, has been placed under regulatory supervision in Switzerland.

British lawyer George Lonsdale struck off for dishonesty

September 6, 2019

Yet another British lawyer - George Lonsdale - who was involved with the fraudulent Cayman Islands-domiciled Axiom Legal Financing Fund has been struck off for dishonesty, this time for stealing from an elderly client in an unrelated incident.

Blockchain firm LCX AG is ‘unlicensed’, warns Liechtenstein regulator

September 5, 2019

The financial regulator in Liechtenstein has warned that LCX AG, the "Liechtenstein Cryptoassets Exchange" that describes itself as "A Blockchain Bank For The New Financial World", is not licensed to offer financial services. LCX is operated by Monty Metzger and lists Canadian blockchain proponent Don Tapscott and Wikipedia founder Jimmy Wales among its "Advisors".

NY client sues offshore firms over failed Belvedere Management investments

August 30, 2019

Thailand-based British financial adviser Paul Gambles and his MBMG Group, including firms in the BVI, Mauritius, Singapore, and Thailand, are being sued for $3.5M in Bermuda by a U.S. client whose cash was invested in funds managed by the Belvedere Management Group, whose fraudulent operations were exposed by OffshoreAlert in 2015.

British fraud firm Etaireia Investments goes into administration

August 29, 2019

British firm Etaireia Investments Plc has gone into administration - four years after being exposed by OffshoreAlert for perpetrating a property-based investment fraud involving firms and individuals in the BVI, England, Gibraltar, Isle of Man, Scotland, Seychelles, and Spain.