Actions From Regulators Around the World
Basic details of warnings and actions by regulators around the world.
Imperial Consolidated administrator awaits results of geological survey in Argentina
The results of an independent geological survey of 4.5 million acres of land in Argentina to which the Imperial Consolidated Group has mining rights are expected to be known by the end of August.
They will go a long way to determining the level of dividend creditors can reasonably expect, said a spokesman for Imperial's UK-based administrator, Mazars Neville Russell.
Two new lawsuits filed in Evergreen Security bankruptcy
Two new civil lawsuits have been filed against parties believed to have contributed to the collapse of Evergreen Security, an unlicensed 'mutual fund' that is believed to have defrauded investors of approximately $200 million.On July 9, 2002, Evergreen's Bankruptcy Trustee, Bill Cuthill Jr., announced he had sued Bahamas resident Greg A. White for an amount that could exceed $50 million.
Brek Energy – past allegations against CFO
OffshoreAlert has uncovered further information casting doubt on the legitimacy of Nasdaq-listed Brek Energy, whose dismal operating results caused the Bank of Bermuda to write off its entire $14.3 million investment.We have obtained details of allegations of impropriety against the firm's Chief Financial Officer in 1995 relating to a former employer.
Bahamas resident sued for more than $50 million by Evergreen Security’s Bankruptcy Trustee
A civil complaint has been filed against Bahamas resident Greg A. White as part of the investigation into Evergreen Security, whose principals defrauded its clients of more than $200 million.The action, which seeks to recover more than $50 million, was filed at the United States Bankruptcy Court for the Middle District of Florida, in Orlando, by Evergreen's Chapter 11 Bankruptcy Trustee, R. W. (Bill) Cuthill, Jr.
Imperial Consolidated has debts of US$336 million
The value of mining rights in economically crippled Argentina will determine the financial condition of the Imperial Consolidated Group.
More than 50 per cent of Imperial's total assets - on paper - are in holdings in mining ventures in Tucuman, said a spokesman for the group's UK-based administrator, Mazars Neville Russell Services.
Judgment for $1.18 million against VistaBank
A default judgment for $1.18 million has been entered in the United States against Grenada-licensed VistaBank Ltd. and its principal, Carl H. Lane.The judgment, comprising $835,537 in actual damages and $350,000 in punitive damages, was entered on March 7, 2002 at the United States District Court for the Eastern District of Virginia.
Brazil: Improver International Fund Ltd.
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Brazil into British Virgin Islands-domiciled Improver International Fund Ltd. for suspected involvement in corruption, securities fraud, tax evasion and money laundering.
Imperial Consolidated goes into administration
The Imperial Consolidated Group has gone into 'voluntary administration' in the United Kingdom.
The news was announced today by Imperial's London-based public relations firm, Luther Pendragon.
Fidelity Bank and Trust International Ltd. et al v. Christopher Donnachie, et al: Judgment
Judgment in Fidelity Bank and Trust International Limited and British American Card Company Limited v. Christopher Donnachie and Pandon Technology, SA at Bahamas Supreme Court.
Arrest warrant issued for former Bermuda insurance officer Simon Samuels
An arrest warrant has been issued in Las Vegas for 46 year old former Bermuda based insurance officer Simon John Samuels.The warrant was issued at the U. S. District Court for the District of Nevada on February 21, 2002 -
USA v. Alvin Irwin Moss et al: Criminal Indictment
Indictment filed by USA against Alvin Irwin Moss, Frederick John Collier, Avraham Zohar, a.k.a. Avy Zohar; Richard Titterington, Geoffrey L. Feldman, Sherrie-Lee Doreen Cave, Peter James O'Sullivan, Rosalind Rose, Wayne Budd, Thomas Montgomery Bayer, Robert Murray Bohn, Stacy Layne Beavers, Beverly Ann Moss, Jeffery Allen Moss, Larry Charles Moss, Michael Joseph Harkin and Michael Elliot Cole at the U. S. District Court for the Western District of Tennessee.
British Virgin Islands: Bank of America
Application for the appointment of a Commissioner to collect evidence - pursuant to a request for judicial assistance from the British Virgin Islands - for a criminal investigation into Berton Smith, Derek Grant, Nu-Tel Communications Inc., Lester Salkey, Clyde Thompson, Albion Hodge, Alvin Hodge, and B&A Networking Services for suspected bribery, corruption, false accounting, fraud, and theft regarding a contract to construct and expand the Terrance B. Lettsome International Airport.
Insider Talking: April 30, 2002
Business associated with Imperial Consolidated founders Lincoln Fraser and Jared Brook applies for permission to use a property on an old Royal Air Force base in England to store and test military equipment, Offshore Finance Authority of St. Vincent & the Grenadines revokes licenses of nine offshore banks, BVI Financial Secretary L. Allen Wheatley suspended from his duties after being arrested and charged with conspiracy to defraud, Bahamas International Securities Exchange reports net loss of $2.24 million for the 11 monthsended June 30, 2001, criminal action against Yank Barry drags on in Texas, British businessman Sean Quinn charged with US$3 million fraud in Barbados, former FIBG principals fail to comply with subpoeans, and the ego of Marc Harris apparently knows no bounds.
Four plead guilty to Evergreen Security charges
Four men have agreed to plead guilty to criminal charges relating to the 'Evergreen Security' investment scam, which defrauded approximately $200 million from more than 2,000 investors.They are Thomas Spencer, 51; Robert W. Boyd, 55; and Martin W. Boelens Jr., 45, all of Orlando, Florida; and Anthony V. Micciche, 72, of Tampa, Florida.Spencer and Boyd are shareholders of Bahamas-based Surety Bank and Trust (in liquidation), which ended up with some of the proceeds from the fraud.
United Kingdom: Kentaro Matsumoto et al
Application for the appointment of a Commissioner to collect evidence for a money laundering investigation in the United Kingdom into Kentaro Matsumoto and Illy Chakrabarty.
US court approves application to serve summonses on VISA International for tax evasion investigation
A California court has approved a request by the Internal Revenue Service for leave to file "John Doe" summonses on VISA International as part of an investigation into tax evasion using offshore credit cards.
The order, issued on March 28, 2002, allows the IRS to examine the records of VISA credit or debit cards issued "by, through, or on behalf of banks or other financial institutions" in 31 offshore jurisdictions.
Insider Talking: March 31, 2002
Subpoenas have been sent out to several former officers of the First International Bank of Grenada, including Rita Regale, Robert Skirving and Van Brink, to appear for examination in Grenada as part of the liquidation process being carried out by PricewaterhouseCoopers; Yet another Grenada offshore bank has gone out of business amid allegations of fraud against its clients; The Bank of Bermuda has estimated that its remaining potential liability to outstanding litigation relating to the Cayman-based Cash 4 Titles Ponzi scheme, excluding the $67.5 million settlement of a class action lawsuit in the United States, is no greater than $20 million; A civil complaint alleging 'dumpster diving' against international debt recovery firm Interclaim that was reported in last month's edition of OffshoreAlert has been dropped; The incredibly slow - yet inevitable - collapse of The Harris Organization financial services group of Panama appears to be closer than ever; and Bermuda-based stockbroker Carol Green has been ordered by a local court to repay $143,536 of debt run up with her former employer Lines Overseas Management.
Insider Talking: February 28, 2002
The scam committed by Morrison Cross Financial Investments, which fleeced investors while operating as a stock broker in Panama without a license, has entered a new phase; Justice Ephraim Georges, sitting in the Antigua High Court, has apparently recused himself from legal hearings relating to the liquidation of Eurofed Bank after an objection by attorneys acting for former Ukrainian Prime Minister Pavlo Lazarenko, who considered that the judge's partiality was compromised by his son being employed by PricewaterhouseCoopers, which is liquidating the bank; On February 12, 2002, a Dallas County Grand Jury in Texas returned 24 indictments against Cameron O. Bailey relating to the sale of unregistered securities, namely Certificates of Deposit issued by Cambridge International Bank & Trust, of Grenada, and promissory notes issued by Omne Srl; As Julien Giraud waits in custody in Florida for the start of his trial on money laundering charges, his wife Lyn has been writing letters of outrage to the local press in their native Dominica, protesting at the arrest of her husband in Puerto Rico last November while he was traveling with Dominica's Finance Minister, Ambrose George; OffshoreAlert has previously reported on stock scams and other frauds perpetrated by firms linked with Bermuda Stock Exchange-listed Mezzanine Capital; and Complaints are starting to be made publicly by people who have either bought shares from, or have been approached about buying shares by, Goodman Hart Associates, Morgan Paris & Company and/or St. James & Company, who have been promoting two stocks particularly heavily: AdRentaCar Inc. and Spantel Communications Inc.
Regulatory Warnings: December 31, 2001
Recently-filed warnings from securities regulators around the world.
Evergreen Trustee wants offshore trust company to turn over documents
OffshoreAlert reported last month that R.W. Cuthill, Jr., the Trustee of Evergreen Security Ltd., had filed an Adversary Proceeding against Costa Rica-based Intrados S.A. at the United States Bankruptcy Court for the Middle District of Florida, where Evergreen has been in bankruptcy since January 23, 2001.
Former AFC Re owner sued for return of loans from investment fraud firm
A fund manager whose interests have included a Bermuda reinsurer and a Bahamas bank is being sued for $8.5 million by the Bankruptcy Trustee of a fraudulently run offshore investment firm.The defendants are Atlantic Portfolio Analytics and Management Inc., a.k.a.
Canadian Venture Exchange blocks offshore firm’s reverse merger attempt
The Canadian Venture Exchange has blocked a reverse merger attempt by a firm offering online stockbroking products to offshore investment firms.British Virgin Islands domiciled Blue Chip Online Ltd., whose President is Canadian businessman Richard Czerlau, had been trying to reverse
Bahamas regulators must go through courts to freeze assets, rules judge
The Bahamas Supreme Court dealt a blow to the local government's fight against money laundering by issuing a landmark ruling limiting the powers of the new Financial Intelligence Unit.In a decision dated November 27, 2001, Judge Anita Allen ruled that
Fraud lawsuit filed against public issuer linked to Hawthorne-Sterling
A firm whose insiders included the now defunct Hawthorne Sterling mutual fund group of the Bahamas has been accused of stock fraud in the United States.The stock of Trans Energy Inc. was artificially inflated by the dissemination of several false
Imperial Consolidated lays off workers
Imperial Consolidated PLC, which is funded by offshore mutual funds, has laid off a majority of its workforce at its main site in the village of Binbrook, England.All 150 200 workers at Binbrook received letters on August 31 advising them
Former owner of AFC Re caught up in fraud investigation
The former owner of Bermuda-registered AFC Re has been caught up in an investigation into an alleged $200 million fraud involving an unlicensed offshore mutual fund.Atlantic Portfolio Analytics and Management, of Orlando, was an investment adviser to Evergreen Security Ltd., which filed for bankruptcy in Florida on January 23, 2001.
Asset freeze order against Surety Bank and Trust over failed mutual fund
A Florida court has issued an injunction forbidding the liquidator of Bahamas-based Surety Bank and Trust from distributing assets to seven people, including six of the bank's shareholders.The injunction is part of an investigation into an alleged $200 million fraud committed in the name of Evergreen Security Ltd., which effectively operated as an unlicensed offshore mutual fund.
Aristocrat Endeavor Fund emerges as key component of First International Bank of Grenada fraud
A Cayman-registered mutual fund whose shares were once listed on the Bermuda Stock Exchange has emerged as a centerpiece of the massive fraud committed by the First International Bank of Grenada.Shares in the Aristocrat Endeavor Fund comprised $17.25 million of FIBG's bogus initial capital of $32.75 million in 1997, according to a new report by the bank's liquidator, Marcus Wide.
Insider Talking: July 31, 2001
The long-awaited criminal trial of Bahamas resident Yank Barry in Texas on charges that he bribed a prison governor to secure a lucrative contract for his soy-based food firm called VitaPro is due to start on August 7, 2001 following previous delays; A look at OffshoreBanc.com; Kevin Mann, Registrar of Mutual Funds in the British Virgin Islands, has issued a Cease and Desist Order against Ian Renert's so-called Equivest Premier Holdings (BVI) Inc., which has been holding itself out to be an offshore mutual fund manager; Evergreen Security - details about creditors and how much they are owed; The 'New Utopia' farce continues; Bahamian Hubert Bowe is still trotting out press releases at www.alexandersworld.net claiming that he is about to "break ground" on a major development called Alexander's World; The last remains of FIBG's sham insurer, IDIC, disappeared recently when its web-site at www.idic-ec.org went off-line; The purchase of about 10 million shares in Manchester United PLC for some GBP28 million (US$40 million) by BVI-registered The Cuban Expression Company Ltd. - pushing its overall stake up to 6.77 per cent - caused quite a stir among business and soccer reporters in England; Further misrepresentation by The Harris Organization of Panama; and Paul de Weerd leaves his position as Superintendent of the Turks & Caicos Financial Services Commission.
Antigua Gov’t tries to seize Eurofed Bank assets
In secret court hearings held in Antigua, the island's government has been trying to seize all or most of the $76 million of assets recovered so far in the liquidation of Eurofed Bank Ltd., we can reveal.The government is claiming the assets under its anti-money laundering laws on the grounds that they are the proceeds of criminal activity by former Ukraine Prime Minister Pavlo Lazarenko, 48.
Third sham bank linked with The Harris Organization
The Harris Organization financial services group has set up yet another Internet bank that is being operated without a license.Operating from a web-site at www.ginvestmentgroup.com, G Investment Group claims that it is "a diversified financial services company providing clients a broad range of international structures involving financial, asset protection and investment opportunities".
Elderly client claims Sabourin and Sun cleaned her out
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.
Fund manager Ian Renert signed documents in names of pet geese, claims SEC
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.
Businessmen indicted over Evergreen Security alleged fraud
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.
Insider Talking: April 30, 2001
Attorney David Hampton Tedder, 54, who has spent much of his career involved in offshore finance, including several dubious ventures, is no longer licensed to practice law in the United States. Records kept by the State Bar of California, where
Securities Commission of the Bahamas v. Alastair-Prescott Ltd. et al: Judgment
Judgment in Securities Commission of the Bahamas v. Alastair-Prescott Ltd. and 35 other defendant companies at Bahamas Supreme Court.
Belgium: Melchior Wathelet
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Belgium into Melchior Wathelet for suspected forgery and bribery.
PILL’s Pierre Gauthier: ‘Referrals demonstrate customer satisfaction’
Letter to OffshoreAlert from Pierre J. Gauthier, MBA, CFP, Managing Director, Prosper International.
Panamanian regulators act against Marc Harris
The Panama Securities Commission has turned down an investment advisor application by Harris Investment Advisory Inc., which is part of The Harris Organization group. A Commission spokesman said the application was rejected primarily because of "the number of complaints we have received from Harris clients alleging all sorts of dubious practices".
Imperial Consolidated: Prior debts of principals and more regulatory problems
The Chairman of the Imperial Consolidated Group was threatened with criminal action in England in 1996/97 after being accused of breaking the terms of his bankruptcy, we can disclose. Even then, it took Lincoln Julian Fraser many more months to settle a debt of GBP22,000 (approximately US$32,111) to Lincolnshire-based creditor Heckford Advertising.
Failed $200 million fund linked with Bahamas bank
An offshore mutual fund that has collapsed amid debts of $200 million and allegations of massive fraud had close links with Bahamas-based Surety Bank & Trust, OffshoreAlert can reveal. SBT's relationship with British Virgin Islands-registered Evergreen Security Ltd. appears to be the reason why the bank chose voluntary liquidation late last year over being sold as a going concern.
Monaco: William Fogwell et al
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Monaco into William Fogwell, Shelley Fogwell and Guillaume Losada y Padilla for alleged fraud regarding the Hobbs Melville Group.
VP Bank and Bank of Butterfield caught up in ‘sex.com’ dispute
A federal judge in California has appointed a receiver to take control of any assets of VP Bank (BVI) that were earned from a hard-core pornography web-site at www.sex.com.The Receivership Order, which was issued on February 2, 2001 against convicted felon Stephen Michael Cohen, also covers the assets of two BVI-registered IBCs and other Cohen-related entities.Receiver George C. Fisher, of Palo Alto, is permitted to "locate assets of Stephen Michael Cohen, Ocean Fund International Limited, Sand Man International Limited, VP Bank (BVI) Limited directly or indirectly related to the operation of the Internet domain name 'sex.com'," reads the Order.
Insider Talking: February 28, 2001
Offshore regulators act against banks named in U. S. Senate's 'Correspondent Banking: A Gateway to Money Laundering' report, Marc Harris denounces attempt to strip him of Panamanian citizenship, David Voth comes up with a novel excuse as to why he can't make investment pay-outs, complaints about Morrison Cross Financial Investments start coming in, details of relatively-recent lawsuits involving Jerome Schneider and/or related entities, U. S. court approves settlement plan between Heartland Financial Services and investors who received "false profits", Pittsburgh travel agent Roy Davis Jr. becomes latest victim of John Mathewson's co-operation with US authorities, sset freeze order issued against Midpoint Trading Corporation, Euro Bank Corp. 'Preliminary Inquiry' hearing starts in Cayman Islands.
Imperial Consolidated files lawsuit against OBNR, seeks injunction
Imperial Consolidated PLC has followed in the footsteps of The Harris Organization and the First International Bank of Grenada and filed a libel lawsuit against OBNR and its principal, David Marchant.
While the previous two lawsuits were filed at federal court in Miami, Imperial Consolidated filed its complaint at state court, specifically the Circuit Court of the Eleventh Judicial Circuit for Miami-Dade County, Florida, on February 21, 2001.
Imperial Consolidated Plc’s first audit reveals little about health of entire group
UK-based Imperial Consolidated PLC filed its first-ever audit with Companies House in early February but it shed little light on the financial status of the overall group.
Although the firm is described as the "Imperial Consolidated PLC Group of Companies" in its audit, the results of none of its overseas affiliates are included, nor are some of the group's UK companies.
Grenada bank with dignitaries as directors implicated in fraud
AÂ bank whose directors include an ex-Prime Minister, a former Governor-General and two Justices of the Peace has become Grenada's latest offshore financial institution to be implicated in fraud. A promoter and 'Honorary Director' of Windsor International Bank & Trust, Douglas E. Castle, is being sued in the United States for allegedly defrauding a client of $244,636.
Imperial Consolidated Plc misses filing deadline for audit
The British holding company for the Imperial Consolidated financial services group has missed a statutory deadline for the filing of its first ever audit, OffshoreAlert can disclose.
Leon Brener v. Malcolm Alan Novack et al: Complaint
Complaint in Leon Brener v. Malcolm Alan Novack, Marilyn Novack, Watermark (International) Holdings Ltd., Buckingham Holdings International Ltd., Pembroke Trading Company Ltd., and Gabelle Holdings Ltd. at the U. S. District Court for the Southern District of Florida.