Banks & Trusts

Marc Harris found guilty of tax evasion and money laundering

November 24, 2003

Offshore services provider Marc M. Harris, 38, was today found guilty of 16 counts of money laundering and tax evasion.A jury at the United States District Court for the Southern District of Florida, in Fort Lauderdale, found him guilty of

Marc Harris: No verdict until next week

November 19, 2003

There will be no verdict in the Marc Harris money laundering tax evasion trial until Monday, November 24 at the earliest.The jury retired to consider its verdict at 12.35 p.m. today and the judge allowed jurors to deliberate until well

Harris jury will consider verdict tomorrow

November 18, 2003

A jury in Florida will retire tomorrow to determine the fate of offshore businessman Marc Harris.After five days of presenting several witnesses and mountains of documented evidence, the United States Government wrapped up its case against Harris at 3.48 pm

Marc Harris’ attorney puts blame on former business partner, Robin Baily

November 17, 2003

It was Panama based offshore services provider Peter Robin Baily, not Marc Harris, who set up and maintained a scheme for Florida businessman Moises Kriger to evade United States taxes, a jury heard today.That was the scenario put to Kriger

UK seeks evidence from US banks for investigation into alleged fraud involving Versailles Group

November 15, 2003

The United Kingdom has requested evidence from banks in the United States as part of a criminal investigation into the collapse of Versailles Group PLC. Details are contained in an application for the appointment of a Commissioner to collect evidence

Police called when irate client demanded funds, court hears

November 13, 2003

Police were called to the office of Marc Harris in Panama when a client turned up demanding access to his funds, a jury in Florida heard today.Despite their presence, Joseph Vigna testified that he would not leave the premises but

Marc Harris advised clients to destroy documents, allege prosecutors

November 10, 2003

Offshore businessman Marc Harris advised two of his United States-based clients to destroy their business records and flee to Panama in 1995 when they were being audited by the IRS, a jury in Florida heard today.Tony Vigna and his son, Joseph, took the advice, shredding and burning documents concerning their illegal refrigerant gas smuggling operation and moving to Panama, said federal prosecutor Gregory Tortella in his opening argument on the first day of what is expected to be a nine-day trial.

SEC Receiver criticized by judge over efforts to recover assets

November 8, 2003

An SEC appointed Receiver has been criticized by a judge for not doing enough to recover assets of an $87 million fraud that were transferred offshore, including $61 million to Barclays Bank in the Bahamas.The target of the criticism is

The Marc Harris money laundering/tax evasion trial set to start on Monday

November 8, 2003

Despite late efforts to have charges against him thrown out, offshore businessman Marc Harris will go on trial for 30 counts of money laundering and tax evasion in Miami, Florida on November 10.Harris will be defended by Frank Rubino, a

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.

Offshore ‘banker’ Dennis Shollenburg indicted for fraud in California

October 31, 2003

The manager of a Nauru-licensed bank that was operated illegally in Nevis has been criminally indicted in the United States for alleged fraud concerning another bank that he operated.Dennis L. Shollenburg was arrested on August 18, 2003 - five months after a sealed indictment was brought against him at the U. S. District Court for the Central District of California.

Former FIBG promoters fined for a separate banking fraud

October 31, 2003

Promotional spiel used by two former insiders of the First International Bank of Grenada to promote a separate fraudulent investment scheme has been likened to a legendary comedy sketch by a judge.Their tale of purported high-reward, no-risk trading in "mid-term notes" resembled "the old Abbot and Costello routine of 'who's on first'", stated Circuit Judge Frank L. Bearden.

Ex-BVI Gov’t minister Andrew Fahie investigated for money laundering

October 31, 2003

A United States federal court has granted a request for judicial assistance regarding a criminal investigation into a former member of the British Virgin Islands Government and his banking officer wife.The targets of the investigation are Andrew Alturo Fahie, 33, who was the BVI's Minister of Education & Culture until a change of government in June of this year, and his wife, Sheila E. Fahie, a.k.a. Sheila Fannie, Sheila Romney, 36, an officer with Banco Popular in BVI.

USA v. Hellivesa Foundation: Forfeiture Complaint

October 29, 2003

Forfeiture complaint in USA v. Accounts at LGT Bank in name of 'Hellivesa Foundation' at the U. S. District Court for the District of Idaho.

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.

Cash 4 Titles victims sue Leadenhall Bank and Axxess International

October 25, 2003

Two years after obtaining a $67.5 million settlement from the Bank of Bermuda, victims of the Ponzi scheme known as Cash 4 Titles have filed a class action lawsuit against another offshore bank.The target this time is Bahamas-based Leadenhall Bank & Trust, which is a defendant along with its credit card processing affiliate, Axxess International, also of the Bahamas.

Offshore bank was perpetrator, not victim, claims lawsuit

October 25, 2003

A Cayman Islands-licensed bank is being sued in the United States following the collapse of an accounts receivable factoring group.Far from being a victim of the now insolvent E. S. Bankest Group, Bank Espirito Santo International Ltd. participated with it in a fraudulent scheme, it has been alleged.

Trinidad & Tobago: Telecommunication Services of Trinidad and Tobago Limited

October 24, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Trinidad and Tobago into Telecommunication Services of Trinidad and Tobago Limited for alleged fraud.

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.

‘Bank of Bermuda loans were repaid in full, not written off,’ claim First Atlantic Commerce

October 10, 2003

Letter from Richard Horseman, of Wakefield Quin law firm, complaining about an OffshoreAlert article about his client, First Atlantic Commerce Ltd.

Marc Harris fails to have indictment dismissed, trial to start on Nov. 10

October 10, 2003

Offshore asset protection specialist Marc Harris, who is in custody awaiting trial, has failed to have a 13-count tax evasion and money laundering indictment against him dismissed at federal court in Miami, Florida.On October 6, 2003, Judge James I. Cohn denied two motions by Harris to dismiss all or some of the 13 counts brought against him on May 6, 2003.

Poland: Bank Pekao(2)

October 10, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Poland into alleged fraud.

Poland: Jacek Piskulski et al

October 10, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Poland into Jacek Piskulski, Maciej Jeleniewski, Ewa Winerowicz and Michal Gajewski for alleged fraud.

Imperial Consolidated’s assets frozen by US Bankruptcy Court

September 30, 2003

A U. S. Bankruptcy Court in New York has issued a preliminary injunction freezing the assets of the Imperial Consolidated Group in the United States. The injunction, issued in September, 2003, also prohibits "all persons and parties in interest" from

Former FIBG director DuSean Berkich ‘commits suicide’, says attorney

September 30, 2003

A former director of the fraudulently operated First International Bank of Grenada has apparently committed suicide while awaiting sentence for another banking fraud, according to his attorney.DuSean Berkich apparently killed himself on August 10, 2003 - less than two months

New York businessman accuses offshore fund administrator of racketeering

September 30, 2003

A New York real estate businessman is seeking $136 million in damages against a provider of offshore hedge fund services and its alleged associates.In a civil complaint filed at the U. S. District Court for the Eastern District of New

Criminal investigation into Hamilton Bank executives

September 30, 2003

Two former executives of a now-closed U. S. bank that provided correspondent services to many offshore financial institutions are targets of a criminal investigation. They are Eduardo Masferrer and Carlos Bernace, formerly Chairman/CEO and Executive Vice President/Director, respectively, of the Hamilton Bank, in Miami.

Hamilton Bank officers accused of fraud

September 27, 2003

The U. S. Securities and Exchange Commission has filed a lawsuit alleging fraud against three former senior officers of Florida-based Hamilton Bank N. A., which was closed down by U. S. regulators in January, 2002. Eduardo A. Masferrer, Juan Carlos Bernacé and John M.R. Jacobs are defendants in the action, which was filed at federal court in Miami on September 25, 2003.

Imperial Consolidated creditors can expect 11 cents in dollar

September 24, 2003

Unsecured creditors of one of the main companies within the Imperial Consolidated Group have been told to expect a dividend of approximately 11 cents in the dollar. That is the "estimated outcome" for parties owed money by Imperial Consolidated Financiers Ltd. as forecast by the firm's administrators, Philip Lyon and Steve Woods, of Mazars Neville Russell.

Marc Harris asks judge to dismiss indictment

September 18, 2003

Offshore asset protection businessman Marc Harris has filed motions to dismiss a 13 count money laundering indictment brought against him in Florida. Among the grounds put forward by Harris' attorney, Joaquin Fernandez, are "statute of limitations" bars and "pre indictment

Swiss bank sues Florida receivables factoring firm

September 18, 2003

A Florida receivables factoring group which is being sued for $170 million by a Cayman Islands bank is a defendant in a new action brought by a bank in Switzerland. In a lawsuit filed on August 27, 2003, EFG Private

Client complains about Whitherspoon Seymour & Robinson

August 31, 2003

A business which operates from addresses in the United States has been accused of ripping off a Hong Kong-based client through the sale of an offshore bank charter.Whiterspoon Seymour & Robinson Inc. received $41,980 from the client in November, 2002 for a shelf bank called European Securities Bank Ltd. that was purported to be licensed in Fiji. The funds were sent to WS&R's account at PNC Bank, 500 First Avenue, Pittsburgh, Pennsylvania.

Bank of Bermuda CEO files to sell shares worth $2.3 m

August 31, 2003

Over the last nine months, Bank of Bermuda CEO Henry Smith has notified the SEC that he plans to sell 69,000 of his shares in the bank with an estimated open market value of $2.32 million.SEC filings show that Smith made eight separate 'Planned Sale' filings with the SEC from December 19, 2002 to August 19, 2003. However, there are no filings yet showing that he has sold any.

‘Banc Caribe action has no adverse effect on our bank’, says NCB

August 25, 2003

Letter to the Editor of OffshoreAlert from National Commercial Bank of Dominica Regarding Banc Caribe.

Spain: Jose Maria Clemente Marcet et al

August 25, 2003

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Spain into Jose Maria Clemente Marcet, Mustapha Djaoudi, Nayez Bin Fawwaz Al Shaalan, Gabriel Usuga Norena, Oscar Eduardo Campuzano Zapata, Carlos Alfonso Ramon Zapata, Margarita Maria Carmonar, Jaime Alberto Gomez Giraldo for alleged involvement in narcotics trafficking and money laundering.  

Cayman bank sues US factoring firm for $170 m

August 18, 2003

A Cayman Islands-licensed bank is suing a Florida-based accounts receivable factoring company which has allegedly defaulted on loans totaling $170 million.Bank Espirito Santo (International) Ltd., which is part of the Portugal-based Espirito Santo Group, filed a civil lawsuit against E. S. Bankest LC at the U. S. District Court for the Southern District of Florida on August 6, 2003.

Investors in Bahamas-domiciled MJ Select Global seek to recover $9.8 m in losses

August 18, 2003

Investors in a failed Bahamas-based investment fund have filed a lawsuit in the United States in which they are seeking to recoup $9.8 million of losses.The plaintiffs are investors in M. J. Select Global Ltd., which is in liquidation after suffering total losses of "at least $30-$40 million", according to the complaint.Several of the many defendants are based in the Bahamas, including M. J. Select Global Ltd., Oceanic Bank & Trust Ltd., Citco Fund Services (Bahamas) Ltd. and Lion Corporate Services Ltd.

Panama to investigate alleged corruption regarding Marc Harris

August 9, 2003

Panama's government is to carry out an investigation into allegations of corruption involving its own officials and offshore crook Marc Harris, according to the local media. President Mireya Moscoso announced on August 6 that a Commission would be appointed to conduct the inquiry, reported La Prensa newspaper.

U. S. dentist imprisoned for offshore bank fraud

August 9, 2003

US dentist Noel Tait, who operated a fraudulent offshore bank licensed in Grenada, has received a prison-term in the United States.

Letter to Bank Crozier depositors from Peter Johansson

July 31, 2003

Letter to Depositors of Bank Crozier by Bank Crozier's CEO, Peter Johansson.

Montenegro revokes licenses of all of its offshore banks

July 31, 2003

Effective August 1, 2002, all offshore banking licenses in Montenegro were revoked by the Central Bank. However, some are continuing to operate without a license, including Goldstar Commercial Bank, at www.goldstar-bank.com, and Tempus Bank, at www.tempusbank.info.

US Gov’t obtains order to freeze assets of couple suspected of bankruptcy fraud

July 31, 2003

A United States court has issued an order allowing the U. S. government to seize $660,000 held in an account at Credit Suisse First Boston in Switzerland.In an order dated May 12, 2003, the U. S. District Court for the Eastern District of Washington ruled that the funds came from bankruptcy fraud by Robert Wayne Kersey and Vickie A. Kersey.

Euro Bank Corp. (Cayman) creditors to receive 100 cents in the dollar

July 31, 2003

Clients of Cayman Islands-based Euro Bank Corp. (in liquidation) are to be re-paid their entire principal and some will even receive interest, they have been informed. The payment of a final dividend of 20 cents - bringing the total dividend to 100 cents in the dollar of principal - was approved by the Grand Court of the Cayman Islands on May 1, 2003.

Bermuda police raid law firm’s offices

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.AS&K's two main offices at Cedar House and Cumberland House, both in Hamilton, were searched, reported The Royal Gazette newspaper on July 22, 2003.

Lawsuit filed against Bank Leumi and former officers

July 31, 2003

The Swiss operation of Bank Leumi le-Israel and two of its former senior officers are being sued in the United States by a client who claims to have been defrauded of her life savings.New York resident Elizabeth Varabiev is seeking $1 million in actual damages and $3 million in punitive damages, plus legal fees. Defendants are Bank Leumi (Switzerland), its former CEO, Meir Gross; and its ex-head of private client banking, Ernst Imfeld, the latter of whom was fired in 2001 for alleged embezzlement.

Marc Harris hires Manuel Noriega’s criminal defense attorney

July 31, 2003

Jailed offshore provider Marc Harris has hired former Panamanian leader Manuel Noriega's attorney to defend him against 13 counts of money laundering in Miami.Frank A. Rubino confirmed to OffshoreAlert that: "I am representing Mr. Harris in the U. S. District Court for the money laundering charges filed against him."

Grenada’s offshore banking industry plumbs new depths

July 31, 2003

Petitions to wind-up five offshore banks were presented at Grenada High Court on July 24, 2003.The banks were Bank Crozier Ltd., DIAK Bank Ltd., Anglo American Bank Ltd., Wellington Bank & Trust Ltd., and Cornerstone International Saving & Investment Bank Ltd.

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.

MasterCard terminates Leadenhall Bank’s credit card-issuing license

July 31, 2003

One of the biggest issuers of offshore credit cards, Leadenhall Bank & Trust in the Bahamas, has had its card issuing license terminated by MasterCard.Effective July 29, 2003, all MasterCards issued by Leadenhall Bank were cancelled - a victim of the U. S. clampdown on the use of offshore cards to access the proceeds of crime, including tax evasion.