Canada

Investors sue Lancer Group service providers for $570 m

March 18, 2004

Eighty-six investors from 19 countries who claim to have invested more than $570 million in the Lancer Offshore Group have filed a lawsuit against its directors, administrator, auditor and prime broker. The three biggest claimants are all based in Montreal, Canada: Fondation Lucie et Andre Chagnon, a charity with a claim for $100 million; Bombardier Inc., the world's biggest train maker and third largest civil aircraft manufacturer whose pension fund has a claim for $68 million; and the University of Montreal's pension fund, with a claim for $67 million.

United Kingdom: Anthony David Rich et al

March 17, 2004

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in the United Kingdom into Anthony David Rich and others for alleged fraud.

Canada: Wayne William Fincham

March 9, 2004

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Canada into alleged fraud by Wayne William Fincham.

Canada requests medical records of Michael Ongley for sentencing hearing

February 29, 2004

Article based on an application to collect evidence for the sentencing hearing of Michael John Ongley - pursuant to a request for a request for judicial assistance by Canada - that was filed at the U. S. District Court for the Eastern District of Michigan on July 18, 2003.

Spain: Enrique Emanuel Vecino Acosta

February 27, 2004

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Spain into Enrique Manuel Vecino Acosta, Ivan Recio Perez and Maximiliano Vecino Adami for alleged fraud.

EBI Securities Corporation, Inc. v. Rene Michael Hamouth: Default Judgment on Remand

February 6, 2004

Default Judgment on Remand in EBI Securities Corporation, Inc. v. Rene Michael Hamouth, The Hamouth Family Trust, 411396BC, Ltd., and Net Command Tech, Inc., f.k.a. Corsaire, Inc., f.k.a. Corsaire Snowboard, Inc. at the U. S. District Court for the District of Colorado.

Ontario Securities Commission v. Monte Friesner et al: Decision and Reasons

February 3, 2004

Decisions and Reasons in Ontario Securities Commission v. Monte Morris Friesner and First Federal Capital (Canada) Corporation.

Insider Talking: January 31, 2004

January 31, 2004

Lines Overseas Management has filed a lawsuit against the Bermuda Monetary Authority in an attempt to prevent the SEC in the United States from receiving information about LOM's clients; Two alleged participants in a massive investment fraud involving Evergreen Security, which was registered in the British Virgin Islands and managed in Florida, are to be re-tried after their trial for grand larceny in the first degree ended in a hung jury; How much does failed offshore hedge fund boss and accused $600 million fraudster Michael Lauer hate Christopher Byron, the New York Post columnist who exposed his activities at the Lancer Offshore Group?; Imperial Consolidated administrator Mazars Neville Russell has reported receipts of $6.48 million and payments of $4.57 million in the five months from June 10, 2003 to December 9, 2003 for the group's principal UK company, Imperial Consolidated Financiers Ltd.; On January 19, 2004 at the British Virgin Islands High Court, Allen Wheatley, former Financial Secretary of the BVI Government, and three accomplices pleaded guilty to corruption-related charges concerning the misappropriation of funds for telecommunications projects at the Terrance B. Lettsome International Airport; Canadian television firm CBC broadcast a fascinating documentary on convicted money launderer Martin Chambers on January 13, 2004, including hidden camera footage of the undercover sting operation that led to his arrest in the 'Bermuda Short' operation conducted by the FBI and RCMP a few years ago; A liquidator of First Cayman Bank, of the Cayman Islands, announced in December 2003 that he had paid out a third interim dividend of 15 cents in the dollar on November 21, 2003 to all admitted creditors in a distribution of approximately US$4.4 million; Eduardo Masferrer, former Chairman and CEO of the now-closed Hamilton Bank N.A., of Miami, Florida, has agreed to pay $960,000 in restitution for the benefit of the Federal Deposit Insurance Corporation and $40,000 in penalties and stay out of banking for an indefinite period; Grenada-domiciled IBC Joie de Vie Ventures Inc. closed for business after taking in millions of dollars from the public by offering returns of up to 100 per cent per year; U.K. attorney Christopher Stenning's Regalia Offshore Fund Ltd., which has an affiliate in the British Virgin Islands called The Regalia Fund Ltd., did not last long; A Canadian regulatory agency has issued a warning against a sham bank doing business as "Bermuda Credit Re-Insurance Bank Ltd."; The California Division of Corporations might want to look a little more closely at Gamboa Properties Inc. before renewing its status as an 'Active' company in the state; and Two Cayman Islands law firms announced they were merging with firms in other jurisdictions during January.

Legal battle for Terry Neal group’s gold and silver

January 31, 2004

A legal battle is taking place in Oregon for possession of gold and silver bars and coins that were seized during a raid on the offices of companies associated with offshore provider Terry Neal. The United States Government is seeking to take permanent possession of the property, worth approximately $225,000 at current prices.

Citco slammed by Lancer Group Receiver

January 31, 2004

An offshore fund administrator has been accused of "impeding" the investigation in the United States into the $600 million collapse of the Lancer group of hedge funds. Citco Fund Services (U.S.A.) Inc. has refused to turn over records concerning BVI-registered Lancer Offshore Inc. and The OmniFund Ltd., which its Netherlands Antilles affiliate administered.

Canadian regulator warns against Bermuda ‘bank’

January 31, 2004

A Canadian regulatory agency has issued a warning against a sham bank doing business as "Bermuda Credit Re-Insurance Bank Ltd." The Office of the Superintendent of Financial Institutions published its warning against BCRB on December 18, 2003.

Romania: John Paul Pender (North Carolina)

January 30, 2004

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Romania into identity fraud and money laundering.

Jury finds former Canadian Space Agency engineer guilty of fraud involving offshore bank

January 24, 2004

Former Canadian Space Agency engineer Serdar Kalaycioglu has been found guilty of fraud involving an offshore bank and a bogus mutual fund following a jury trial in the United States that spanned seven weeks. After 21 days of hearing testimony and four days of deliberations, the jury found 40-year-old Kalaycioglu guilty of 11 counts of wire fraud and one count of conspiracy to commit wire fraud at the U. S. District Court for the Southern District of Florida.

Energy Innovations Corporation: Section 304 Petition

January 23, 2004

Section 304 Petition for Assistance in Insolvency Proceedings in Canada by Mintz & Partners Limited, as the Foreign Representative of Energy Innovations Corporation, at the U. S. Bankruptcy Court for the Southern District of New York.

Parmalat Capital Finance Ltd.: Section 304 Petition

January 20, 2004

Section 304 Petition for Assistance in Insolvency Proceedings in the Cayman Islands by Gordon MacRae and James Cleaver, as the Foreign Representatives of Parmalat Capital Finance Limited, at the U. S. Bankruptcy Court for the Southern District of New York.

Martin Chambers receives 15-year prison sentence

December 9, 2003

Canadian attorney Martin Chambers has been sentenced to 15 years and eight months in prison for his role in an offshore money laundering scheme. Chambers, 64, was also fined $20,000 and ordered to forfeit $95,000, representing that portion of the $700,000 in cash that he took from undercover officers and agreed to launder but failed to return.

Insider Talking: November 30, 2003

November 30, 2003

Deloitte & Touche has offered $32 million to settle a class action lawsuit filed on behalf of shareholders of the British Virgin Islands registered Manhattan Investment Fund who bought shares between October, 1995 and January, 2000. D&T's Bermuda office audited

Switzerland: Ulrich Wymann et al

November 30, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Switzerland into Ulrich Wymann, Martin Wymann and Juerg Rothen for suspected investment fraud.

Switzerland: Marek Andrzei Hrycak (‘Investment Fraud’)

November 4, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Switzerland into Marek Andrzei Hrycak for alleged investment fraud.

US Gov’t applies to seize allegedly criminal proceeds

October 31, 2003

The United States Government has applied to seize $438,035 controlled by a United States-based attorney with close ties to a Grenada-based offshore bank and a convicted money launderer in Barbados.The funds are held at the Fifth Third Bank, of Evansville, Indiana, in an escrow account in the names of Price & Associates and Price & Collins law firms and controlled by attorney David E. Price, of Santa Claus, Indiana.

USA v. Gilbert A. Ziegler et al: Second Superseding Indictment

October 27, 2003

Second Superseding Indictment in USA vs. Gilbert Allen Ziegler, a.k.a. Van Arthur Brink; Rita Regale, a.k.a. Rita Brunges; Douglas Ferguson, Robert Skirving and Laurent Barnabe, a.k.a. Larry Barnabe, at the U. S. District Court for the District of Oregon.

Sandra V. Boylan et al v. Kevin McGeever et al: Complaint

October 22, 2003

Complaint in Sandra V. Boylan, Aidan J. Greaney, Paul A. Carnegie, Kevin Cleary, Dale Cochard, John R. Combes, Cynthia Crough, Robert Drake, Eddie Ewell, Ruth Frank, Daniel Zlotnick, Roger Gilmore, Jaime Hamame, Linda Hoitt, Jerry Holladay, Kenyield Limited, Curt Landberg, Helen Louros, Marlow, Davis & Byrd, Ltd., William D. McPeak, Mid America Capital Trust, Ida Ruth Morehouse, Stephen Schulte, Douglas Shortt, A. G. Skinner, Robert Stein, and Paul W. Vandermolen, Jr. v. Kevin McGeever, Douglas Johnson, James C. Sexton, Kenneth J. Adler, Liechtensteinische Landesbank, Gabriel Marxer, James McKiernan, Michael Miller, Raiffeissen Bank, Rudolf Ritter, and James C. Sexton, Jr. at the U. S. District Court for the Northern District of Illinois.

Three offshore bankers admit fraud conspiracy

October 18, 2003

Three ex-offshore bankers who were criminally indicted in 'Operation Bermuda Short' in 2002 have each pleaded guilty to one count of conspiracy to commit wire fraud.They are Sheldon Mickelson, 44, a former plumber of West Palm Beach, Florida; Mario Turcotte, 49, of Canada; and Richard Carson, of Westmount, Quebec, Canada, who helped to operate Meridian Investment Bank Ltd., a now-defunct bank once licensed in the crime-ridden Caribbean island of Grenada.

Bahamas-based offshore provider Dennis Sutton sentenced to prison

September 30, 2003

Canadian national Dennis Sutton has been sentenced to six months in prison in the Bahamas after being convicted of 68 counts of fraud and forgery regarding the formation of international business corporations.Sutton, who operated International Investors Group Ltd., in Nassau,

Jury convicts Martin Chambers, acquits Michael Hepburn

September 11, 2003

Vancouver based attorney Martin G. Chambers, 63, is due to be sentenced on December 5, 2003 after being found guilty of five counts of money laundering.Chambers was convicted of all counts against him by a jury at the U. S.

Fraudster pleads guilty, US Attorney to seek $1.6 m from Bermuda firm

August 31, 2003

A telemarketing fraudster has agreed to assist in an attempt to recover US$1.6 million that the United States Attorney in Los Angeles believes is being held by Bermuda-based e-commerce firm First Atlantic Commerce.Prosecutors believe the funds are the proceeds of Timothy Ryan Babuin's fraudulent activities, according to a plea agreement that he entered into at the U. S. District Court for the Central District of California on July 3, 2003.

Insider Talking: August 31, 2003

August 31, 2003

Fund manager Brian Paul Kuhn pleads guilty at the Grand Court of the Cayman Islands to several counts of theft of client funds; Switzerland investigates theft of financial data by computer hackers; HedgeWorld Limited closes Bermuda office and relocates its staff to New York; "Marc Harris stole your funds", investment fraudster tells clients; Bermuda-based Bank of Butterfield and Bank of Bermuda expand overseas; and career conman David Tedder is sentenced to five years in prison, fined $1.06 million and ordered to forfeit $2.7 million at federal court in the USA.

Witness claims attorney paid him not to testify

August 23, 2003

A stock promoter claims he was paid CDN$10,000 not to testify at a money laundering trial that is currently being held in Miami in which the defendants are Canadian attorney Martin Chambers and Bahamas accountant Michael Hepburn.Kevan Garner, of Vancouver, told prosecutors the payment was made on behalf of Chambers through an intermediary, Barry Mann. There is no suggestion that Hepburn was involved.

USA v. Jack Kronis: Criminal Judgment

August 11, 2003

Criminal Judgment in USA v. Jack Kronis at the U. S. District Court for the Western District of New York.

Newt Utopia: US continues to attack offshore gaming

July 31, 2003

Proposed U. S. Legislation; Asset Recovery - Rita Laframboise, Queen of the Reloads!; and Rant.

Insider Talking: July 31, 2003

July 31, 2003

Police in Bermuda have carried out raids on several offices on the island, including those of law firm Appleby Spurling and Kempe, looking for documents as part of a criminal investigation, reported The Royal Gazette newspaper on July 22, 2003; A Canadian Alliance MP wants Canada to investigate the possibility of annexing the idyllic Turks and Caicos Islands, reported the National Post, of Canada, on July 15, 2003; A court in Zurich, Switzerland, has sentenced Greek businessman Panagiotis A. Papadakis to 23 months and 16 days in prison for fraud, according to a newsletter published by the International Chamber of Commerce's Commercial Crimes Bureau; Former janitor John Wayne Zidar, 60, who orchestrated a Ponzi scheme that took in approximately $74 million from about 3,200 people in the United States and elsewhere, including Bermuda, was sentenced to 30 years in prison on July 28, 2003 at the U. S. District Court for the District of Western Washington; Mazars Neville Russell, the administrators of the Imperial Consolidated Group, have recovered relatively few assets for distribution to its clients and creditors, if a recent filing with Companies House for England & Wales is anything to go by; Just 15 months after they were formed, voluntary applications have been made to strike off two companies that were set up by former senior officers of the Imperial Consolidated Group to carry on in business as IC was collapsing after defrauding investors of $345 million; and A publicly-traded firm in the United States has written off its entire $1 million investment with Omnicorp Bank, which was closed down by regulators in St. Vincent last year but only after the bank's depositors were asked to convert their CDs to preferred shares in a highly dubious U. S.-registered, Canadian-based firm called Solara Ventures.

Receiver appointed in Canada for assets of Exchange Bank & Trust

July 31, 2003

The Supreme Court of British Columbia has appointed a Receiver for US$20 million of assets belonging to two offshore banks, their clients and related parties - more than three years after freezing them.Following its appointment on June 16, 2003, KPMG Inc., in Vancouver, Canada, is seeking claimants for the funds, which were frozen in April/May, 2000 as part of an investigation into securities fraud.

Canada: Michael John Ongley

July 18, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Canada into Michael John Ongley for allegedly uttering death threats, burglary, assault with a weapon and unlawful confinement.

Asset recovery firm wins $36 m judgment against US law firm

July 15, 2003

The organizer of the asset recovery section of OffshoreAlert's upcoming Symposium has won a $36 million judgment against a U.S. law firm.Interclaim Holdings Ltd. and Interclaim Recovery Ltd., which are based in Ireland and owned by a Bermuda holding company, secured the judgment in Chicago on July 3 following a trial that lasted two and a half weeks.

University’s Pension Plan invested $67 m in Lancer Offshore

July 9, 2003

The University of Montreal Pension Plan invested US$67 million - representing more than eight per cent of its total assets - in the now-insolvent Lancer Offshore fund, according to a lawsuit.Another major investor was the AXA group, whose investment vehicles put in $15.25 million in June, 2002 - less than three months before the New York Post newspaper began raising questions about the Fund and six months before the Fund announced it was suspending cash redemptions.

Hunt for Villalobos assets turns to Miami

June 30, 2003

Article based on an application to collect evidence for a criminal investigation into money laundering, narcotics trafficking and investment fraud - pursuant to a request for judicial assistance from Costa Rica - that was granted at federal court in the USA on May 27, 2003. Individuals and businesses mentioned in the request for assistance include Osvaldo Villalobos Camacho, Luis Enrique Villalobos Camacho, Freddy Villalobos Camacho, Victor Sandino Soto, Kenneth Alvarado Thomas, Bertrand Henri St-Onge, Sandra Kerwin St-Onge, Luc St-Onge, Richard Rivers, Norman Denault, Alejandro Alvarado Miranda, Javier Calderon Granados, Hermanos Villalobos Exchange House (OFINTER SA), Servicios de Soporte al Turismo SA, Casa de Libertad SA, Favillale, Carlos Badilla, Fonseca Vargas Omar, Mario Borges Soubirus, Michael Sterling, David Brown, Forbes & Stobart SA, Framagra SA, Palma de Mayorca SA, Inversiones Haas SA, Danir SA, Compania Mercantil El Desierto SA, Casa de Cambio Ofinter SA, Immobiliaria Internacional Platino SA, Barclays Bank, Whitney Bank, Amtrade International Bank, The International Bank of Miami, and LGT Bank.

Protect Kids From Online Porn, Inc. et al v. Donville Inniss et al: First Amended Complaint

June 3, 2003

First Amended Complaint in Protect Kids From Online Porn, Inc., of California, and One World Media LLC, of New Mexico v. Peter Zicherman, of Obtario, Canada; Fernando Pereira, of Barbados; Donville Inniss, of Barbados; Wired Solutions Inc., of Canada; Networks International Inc., of Canada; Rosedale Publishing Ltd., of Canada; Stormbreak Limited, of the Marshall Islands; Starruby Group Inc., of Canada; Giant Sun Group Inc., of Canada; Bizmedia Inc., of Barbados; Tempest Interactive Corp., of Barbados; Virtual Service Inc., of Canada; Internet Billing Company Ltd., of Florida; Internet Billing Company LLC, f.k.a. iBill Ltd., of Georgia; InterCept Inc., of Georgia; PSW Inc., of Rhode Islands, and Web Transaction Services Inc., of Texas, at the U. S. District Court for the Central District of California.

Canadian financial adviser Brian Kuhn arrested in Cayman for alleged US$1.9 m fraud

May 31, 2003

A mutual fund operator was taken into custody by police in the Cayman Islands on May 30 on suspicion of misappropriating approximately US$1.9 million of client funds.The arrest of Canadian national Brian Paul Kuhn follows an investigation into the activities

Peter Sabourin abandons indebted weight-loss business

May 25, 2003

Notwithstanding the fact that he weighs approximately 500 pounds, janitor turned offshore promoter Peter Sabourin has achieved the difficult task of disappearing - leaving behind a mountain of debt.Sabourin, a 43 year old Canadian national, abandoned his weight loss business

Sterling International Bank sued in Canada

May 23, 2003

A 'paper' company registered on the Caribbean island of Nevis has filed a lawsuit in Canada against an insolvent offshore 'shell' bank in an effort to recover $1.08 million that it claims to have deposited. Nevis-domiciled Kachina Inc., formerly Praxis Inc., is seeking a judgment for $1,088,588 against Sterling International Bank Inc., which, according to the complaint, was licensed in Nauru on November 28, 1994 and went into provisional liquidation on September 27, 2000.

Costa Rica: Luis Enrique Villalobos Camacho et al

May 21, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Costa Rica into Osvaldo Villalobos Camacho, Luis Enrique Villalobos Camacho and Freddy Villalobos Camacho for allegedly laundering the proceeds of narcotics trafficking by Bertrand Henri St-Onge, Sandra Kerwin St-Onge, Luc St-Onge, Richard Rivers and Norman Denault.

USA v. Jack Kronis: USA’s Motion for Downward Departure

May 19, 2003

USA's Motion for Downward Departure in USA v. Jack Kronis at the U. S. District Court for the Western District of New York.

Bank of Montreal accused of breaching asset freeze order

May 17, 2003

The Bank of Montreal has been summoned to attend a hearing before the British Columbia Securities Commission on May 21 to answer an allegation that it breached an asset freeze order. The allegation concerns accounts controlled by Exchange Bank and Trust,

Lawsuit filed against Exchange Bank & Trust

April 30, 2003

Exchange Bank & Trust, which was licensed as an offshore bank in Nauru and operated in Nevis, is being sued for $3 million by a client in British Columbia.The civil lawsuit was filed at the Supreme Court of British Columbia on April 24, 2003 by Umbrella LLC, which is registered in Nevis and based in Vancouver.

Ukraine: Pavel Lazarenko et al (2003)

April 23, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Ukraine into Pavlo Ivanovych Lazarenko, Mykola Ivanovych Agafonov, Petro Mykolayovych Kyrychenko and Igor Oleksandrovych Polozhentsev for alleged embezzlement.

USA v. Serdar Kalaycioglu et al: Superseding Indictment

April 10, 2003

Superseding Indictment in USA vs. Serdar Kalaycioglu, Mario Turcotte, Richard Carson, and Sheldon Mickelson at the U. S. District Court for the Southern District of Florida.

Insider Talking: March 31, 2003

March 31, 2003

A United States law firm accused of lining its own pockets by cutting an illegal deal with a telemarketing fraudster to the detriment of one of its clients - an asset recovery firm - has been ordered by a court to produce all of its financial statements and tax returns from 2000 to the present; Three men who were accused of kidnapping an offshore investment fraudster in Kingston, Ontario, Canada in 2001 have pleaded guilty to a lesser charge of common assault; David Ballantyne, who became one of the most despised people in the Cayman Islands, finally agreed to resign as Attorney General, effective March 15, 2003, in the aftermath of the collapse of the Euro Bank money laundering trial; A letter to the editor that was published in the Caymanian Compass on February 26, 2003 spoke volumes for the level of animosity among locals towards the people widely believed to be primarily responsible for the Euro Bank fiasco, which is likely to cost Cayman's taxpayers many millions of dollars in legal fees, costs and damages; Bermuda company director Paul Lemmon has been sentenced to 21 months in prison after pleading guilty to conspiracy to defraud the United States; A dispute involving two offshore entities and two Canadian firms has arisen over the rights to the domain name 'poker.com'; Thirteen days after OffshoreAlert's article last month about a lawsuit filed at federal court in Miami by Florida-registered Growth Fund Partnership Inc. against Nevis-registered Condor Insurance Ltd., both of whose operations raise red flags, the action was dismissed with prejudice; Three firms have been ordered to pay tens of millions of dollars of restitution for their part in a massive investment fraud; Florida-based crook Rommy Kriplani, who specializes in ripping off residents of Third World countries by taking their money on the promise of jobs in the United States that never materialize, is at it again, once more in partnership with his favorite law firm of Spiegel & Utrera, of Coral Gables, Florida; and James Michael Dwyer, who until last year owned the White Sands Hotel in Bermuda, was criminally indicted for bank fraud on March 4, 2003 in his native New Jersey.

Ian Calvert Bleasdale arrested in Panama

March 31, 2003

A fugitive investment fraudster was arrested and deported to Costa Rica after being tracked down in Panama by two of his victims on March 8, 2003, according to a report in The Tico Times newspaper. Ian Calvert Bleasdale, 62, a British-born, naturalized Canadian, will now stand trial on five counts of fraud, reported the newspaper on March 14.

Dozens arrested as FBI targets investment fraudsters at home and abroad

March 31, 2003

Dozens of people in the United States and six other countries have been targeted in a massive police clampdown on alleged perpetrators of high yield investment frauds. Some of the people targeted in the clampdown were: Charles Ellis Halvorsen, Christopher Michael Taylor, William Joseph "Bill" Herisko, Leonard Kalish, Seymour "Sy" Taub, Mario Piccolino, Elson Quon Lui, Nicholas Roblee, a. k.a. Nicholas Richmond, Linda June Eaton, Joseph Lawrence Finney, Raj Mallick, Ronald Gaopalelwe Mokwena, Jack Louis Schrold, William Bruce Harper, John Cocoman, Gregory Smith, Larry Taylor, Rebecca Taylor, James "Doc" McCall, Victor Carl Vaccaro, Robert Downing II, Thomas Patterson, Antonius Maria Heijnen, Rudolfo Nieto, Henry Young, Charles Judson "Judd" Strader, Marion "Bowden" Atherton, James Joseph Honse, Harry Livingston, Alexander Moorehead Sr., Mark Scott Petkovich, Kenneth Samuel Harrison, Rosemary O'Connor, Garrett Oldhouse, Pamela Weeks Clark, Kitten Otto, William Patrick Bailey, Peter Johnson, Harmondev "Hardev" Bal, George Rieg, Alok Basudev, Kevin McKee, Sendjer Shefket, Yen Lung Chen, Tom Hauser, Karl Kortmeyer, and Marius Vermaak.

Offshore bankers plead guilty to fraud

March 31, 2003

A dentist and his accomplice who defrauded $1.2 million from clients of their Grenada-licensed offshore shell bank that was capitalized with just $300 have entered into plea agreements in the United States. Dr. Noel E. H. Tait and Douglas E. Castle each pleaded guilty to one count of wire fraud at the U. S. District Court for the Eastern District of Pennsylvania on March 14 and March 27, 2003, respectively.