‘I see no evidence of fraud’, writes Grenada’s Chief Regulator
Letter to the Editor of Offshore Alert from Michael Creft, Grenada's Chief Regulator regarding the First International Bank of Grenada.
‘I see no evidence of fraud by FIBG,’ writes Grenada regulator Michael Creft
Letter to OffshoreAlert from Grenada's financial regulator Michael Creft regarding the First International Bank of Grenada, World Investors' Stock Exchange, Fidelity International Bank, International Exchange Bank, and International Deposit Insurance Corporation. Disturbingly, the letter was faxed to OffshoreAlert from FIBG's office.
Cayman Islands Governor v. FEDEBANK: Winding Up Petition
Winding Up Petition in Governor-in-Council of the Cayman Islands v. Federated International Bank Limited, a.k.a. FEDEBANK, at the Grand Court of the Cayman Islands.
Scott Oliver’s bank: The hunt is over
Lines Overseas Management is standing by its Cayman-based salesman Scott Oliver despite the fact that a bank he is linked with is part of a major fraud and is operating illegally from Bermuda, where LOM is headquartered. LOM has decided not to fire him even though, five months after Offshore Alert caught him claiming in LOM marketing material to be 'an advisor to the International Exchange Bank of Bermuda', we have found that such a bank has indeed been operating illegally on the island.
Attorneys threaten OffshoreAlert with lawsuit over exposé of insurance-banking fraud
Offshore Alert has received two letters from attorneys threatening to sue us over the banking/insurance scandal involving World Investors Stock Exchange, International Deposit Insurance Corporation, First International Bank of Grenada, International Exchange Bank and Fidelity International Bank, that is exposed in the January 29, 1999 edition of Offshore Alert.
Banking-insurance scam advertisements ask investors to sign away their assets
Avertisement from 'Vincent Lachmi' and 'Dr. Vincent Kumar' starts appearing on the Internet in connection with fraud perpetrated in the names of the International Deposit Insurance Corporation, the World Investors Stock Exchange, Fidelity International Bank, International Exchange Bank and the First International Bank of Grenada.
Marc Harris-OBNR lawsuit due to be tried in May
The Harris Organization's $30 million libel action against Offshore Business News & Research, Inc. and its principal, David Marchant, is scheduled to go to trial in May of this year at the Federal District Court for the Southern District of Florida (Miami).
OffshoreAlert exposes massive offshore banking and insurance fraud
Offshore Alert can today expose a massive fraud involving at least three banks, an insurance company and a stock exchange into which investors are believed to have invested tens of millions of dollars. Participants in the scam include the World Investors Stock Exchange in Grenada, the International Deposit Insurance Corporation in Nevis, the First International Bank of Grenada, the International Exchange Bank, which is registered in either Nauru or Grenada but operated out of Bermuda and Texas; and Fidelity International Bank, which is registered in Nauru but operated from St. Vincent.
‘Apologize and pay damages’, demands IDIC’s attorney
Letter to the Editor from Gerald Burton threatening to sue OffshoreAlert for libel on behalf of his client, IDIC, a fraudulently-operated offshore 'insurer'.
The fiasco surrounding the collapse of American International Bank and the dubious track record of William Cooper
Further information has come our way this month that sheds more light on the collapse of American International Bank and the fiasco that ensued after the same people who caused its problems attempted to transfer the business into another entity they controlled.
It seems that American businessman William W. Cooper and his wife, who co-owned AIB, closed down the bank at the end of December, 1997 and transferred its business on January 2 to a new Antigua-registered entity called Overseas Development Bank Ltd.
IDIC – a bogus insurance company in Nevis
A Nevis company that purports to provide insurance for depositors at offshore banks may be a scam similar to one used to attract funds to the European Union Bank in Antigua that was closed down last year after fleecing investors of several millions of dollars, we can disclose.
International Depositor's Reinsurance Corporation Ltd., which does business as International Deposit Insurance Corporation or IDIC, has all the hallmarks of a fraud. It is in breach of Nevis law by using the word 'Insurance' in its trading name and by passing itself off as an insurance company in its promotional literature at its web-site at http://www.depositinsurance.com.
Melvin Ford’s plan to buy American International Bank falls through
A proposal to buy American International Bank Ltd. that was put forward by a businessman with a history of operating shady schemes has fallen through, we have been told.
AIB's receiver, Edward St. Clair Smith, is now believed to be trying to sell the insolvent bank to other interested parties for $3.5 million, according to a source.
Antigua regulators issue order against AC Banking Group
Regulators in Antigua - where scams run by Eastern Europeans seem to be rife - have issued a cease and desist order against a Latvian-linked group that falsely claims to be licensed in the jurisdiction.
The offending parties are Atlantic Caribbean Bank and Trust Ltd. and its associate firm AC Banking Group Ltd.
FEDEBANK put into court-appointed administration
Roy McTaggart and Frederico A. Golcher, of KPMG in the Cayman Islands and Costa Rica, respectively, have been appointed as controllers of the Cayman-registered Federated International Bank Limited or FEDEBANK, as it is known.
Hunt continues for Scott Oliver’s ‘fictitious’ bank
As regular readers of this newsletter should be aware, we recently caught Lines Overseas Management salesman Scott Oliver lying to potential clients about his credentials by claiming he was on the board of advisors of the International Exchange Bank of Bermuda, which does not exist.
After being exposed, Oliver sent out e-mails to associates in which he claimed that "this bank was not registered in Bermuda as initially discussed but instead was registered in another British Commonwealth offshore jurisdiction". He also declared that he was no longer an advisor to the 'bank'.
UBS (Bahamas) obtains an Anton Piller order against attorney Leslie Vernon Rolle
UBS (Bahamas) Limited has obtained a seldom-granted court order allowing its representatives to enter a Bahamian attorney's premises without notice and take away documents and other movable assets.
The order - known as an Anton Piller order - was granted by the Bahamas Supreme Court on December 11 against attorney Leslie Vernon Rolle, who operates from Nassau, and Esson Securities and Investments Ltd. and Weybridge Properties Ltd.
Plans move ahead for fourth bank in Bermuda
It might have all the hallmarks of a disaster about to happen but plans are moving ahead to form a new, fourth bank in Bermuda called the First International Citizens' Bank.
A Private Members' Bill to incorporate what is intended to be a Bermudian-owned bank was introduced to the House of Assembly this month.
Gulf Union Bank (Bahamas) Ltd. v. Sheik Abdus Shimmy Quraeshi et al: Complaint
Complaint in Gulf Union Bank (Bahamas) Limited v. Sheik Abdus Shimmy Qureshi, Escue Management, Inc., Shahid S. Quraeshi, Crown Capital Advisors, Sohail S. Quraeshi, and Syed Asadullah Kazmi at the U. S. Bankruptcy Court for the Southern District of Florida.
In the Matter of Stanford Trust Company Limited: Memorandum of Agreement
In the Matter of Stanford Trust Company Limited, d.b.a. Stanford Fiduciary Investor Services - Memorandum of Agreement - State of Florida Department of Banking and Finance - December 14, 1998
Cayman Parliament officially removes fiscal exemption clause in PCCL
The Cayman Islands Legislative Assembly passed an amendment on November 18, 1998 to remove the fiscal exemption clause from its Proceeds of Criminal Conduct Act, as we told readers would happen in the September edition of Offshore Alert. The amendment
Battle for control of American International Bank assets
A battle is taking place for control of the assets of American International Bank Ltd. of Antigua, which went into receivership earlier this year.
The bank's demise happened after its principal, William Cooper, tried to set up a new bank called Overseas Development Bank Ltd. to buy AIB, said sources.
Swiss American Bank wins lawsuit brought by US government
The US government has lost its bid to recover $7 million from banks in Antigua, Panama and Switzerland that were the proceeds of marijuana smuggling carried out in Massachusetts.
Judge William Young, of the Federal District Court for the District of Massachusetts in Boston, dismissed a lawsuit brought against Swiss American Bank and Swiss American National Bank (both of Antigua), Swiss American Holding Company S.A. of Panama and Inter-Maritime Bank of Geneva.
Marc Harris latest: Senior officers undergo lie detector tests
Information coming from Panama indicates that November has been yet another bad month for The Harris Organization.
All the signs are that the offshore financial services group, which has been accused in this newsletter of running a Ponzi scheme and of massive insolvency, is about to go bust.
‘Caribbean Bank of Crooks’
Offshore Alert can this month reveal further details about an Internet bank in Antigua that is perpetrating a fraud so crude that it illustrates why the island has developed such a poor reputation in the offshore world.
The fraud is all the more disturbing because the bank's legal representative in Antigua is Steadroy Benjamin, who is a Senator for the ruling Antigua Labour Party and is the Deputy Speaker of the Antiguan House of Representatives.
US private banking officers fail to comply with guidelines on offshore accounts
Private banking officers of US banks that provide accounts to offshore entities are failing to comply with Federal Reserve Bank 'know your customer' guidelines that recommend they find out the identities of beneficial owners. That is one of the conclusions
The Harris Organization forms UK PLC to raise much-needed cash
The cash strapped Harris Organization of Panama has formed a UK public limited company in an apparent attempt to raise up to £5 million ($8.5 million) by selling shares to the public. The Marc M Harris Group PLC was registered
St. George’s Club timeshare firm sues Bermuda Commercial Bank
The St. George's Club Limited, which owns a timeshare resort in Bermuda, is seeking $14.8 million in a lawsuit filed last month against Bermuda Commercial Bank and International Trust Company of Bermuda Limited, which is a subsidiary of the bank.
Antigua amends offshore laws in bid to curb white-collar crime
Following a 17-month review, the government of Antigua and Barbuda this month announced a series of legislative initiatives aimed at cleaning up the jurisdiction's reputation for being one of the most poorly regulated offshore financial centres.
Proposed amendments to the International Business Corporation Act and the Money Laundering (Prevention) Act will create the Offshore Financial Sector Authority, which will have broad oversight and enforcement powers over offshore financial institutions.
Antigua’s regulators fight to close down Caribbean Bank of Commerce Ltd.
The Caribbean Bank of Commerce Limited, which operates as an Internet bank and appears to have Russian connections, has won the latest battle in an attempt by Antiguan regulators to take away its banking licence and strike it off the Companies Register.
But the authorities are continuing their fight to close down the bank, one of whose officers with a heavy Russian accent called the offices of Offshore Alert this month and told us that "you don't know who you're dealing with" after we had started making inquiries about their operations.
Former US regulators lend support to white-collar criminals in Antigua
A report that we have been told was paid for by powerful banker Allen Stanford and presented to the Antiguan government in January of this year as part of the review of Antigua's offshore financial services sector contained a recommendation that would have severely hindered efforts to combat rampant white-collar crime.
First Cayman Bank Ltd. v. Al Jabor Group: Originating Summons (1998)
Originating Summons in First Cayman Bank Ltd. (in Liquidation) v. Al Jabor Group at the Grand Court of the Cayman Islands.
Sidney Kohl v. Winchester Global Trust Company Ltd et al
In the Matter of In the Matter of the Evidence Act 1905, and In the Matter of Order 70 of the Rules of the Supreme Court of Bermuda, and In the Matter of a Civil Matter now pending before the Circuit County Court of the 17th Judicial Circuit Court in and for Broward County, Florida in the United States of America between Sidney Kohl, as General Partner of D&S Partners, a general partnership and TLRES L.P. Real Estate Fund Inc., Riverside Capital Advisors Inc., RTL Partners L.P., RTL Trust, Winchester Global Trust Company Limited, Gulfstream Financial Advisors Inc., Steven Massey and Thomas J. Ryan III. - Bermuda Supreme Court
PaineWebber fires broker, closes offshore brokerage accounts
PaineWebber this month fired long-serving broker Terry Cross and terminated its relationship with Bahamas-based financial and corporate services company International Trade & Investments Limited over fears of becoming implicated in a possible tax evasion scandal.
PaineWebber took this aggressive action after being tipped off that Cross, who worked at its San Francisco office, had allegedly promoted tax evasion during a speech he gave at an offshore seminar held two months ago in Nassau by ITI.
Marc Harris latest: Liquidity crisis deepens, another client goes to prison
More information has come our way this month that sheds further light on the current and past turmoil of The Harris Organization of Panama, including details of liquidity problems, the conviction of another one of its clients on a drug trafficking charge and allegations of 'bounty hunting' against two of the group's officers.
The financial services group, which we have previously reported as being insolvent, running a Ponzi scheme, ripping off clients and laundering the proceeds of crime, seems to be in financial trouble.
US freezes $3.2 m at Stanford International Bank
U. S. authorities have frozen nearly $3.2 million in accounts at Antigua-based Stanford International Bank, as part of an investigation into the illicit fortune of the late Mexican drug lord Amado Carrillo Fuentes, reported The Wall Street Journal.
La Firma de Marc M. Harris v. David Marchant: Criminal Complaint
Criminal Complaint alleging defamation in La Firma de Marc M. Harris v. David Marchant and Offshore Business News & Research at the First Judicial Circuit Court of the Province of Panama.
Cayman Islands: Syed Asadullah Kazmi
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in the Cayman Islands into Syed Asadullah Kazmi for alleged fraud and theft regarding First Cayman Bank and Gulf Union Bank.
US government battles for jurisdiction over Swiss American Bank
A battle for legal jurisdiction between the US government and four offshore financial institutions in a $7 million forfeiture case contains a number of important issues that will affect all companies and individuals who operate offshore but have US clients.Among arguments being put forward by the US government for jurisdiction over banking entities located in Antigua, Switzerland and Panama is the fact that the offshore companies sell their services over the Internet, which can be accessed in the US; that Swiss American Bank has advertised in the in-flight magazine of American Airlines; and that SAB has correspondent banking relationships with banks in the States.
US seeks to extend legal powers over foreign countries
Major legislation has been introduced to US Congress that would extend the power of the US authorities to apply its money laundering laws and penalties in other countries.The proposed laws, which were tabled in April, has the support of both Democrats and Republicans, according to a report in Miami-based newsletter Money Laundering Alert.
The colourful world of the promoters of The Harris Organization
One wrote a book describing Albania as a "fairy tale land" and promised he could show investors "how to double your capital at no risk", another sells seemingly dodgy insurance brokerage licences to the gullible, promising they are available within 72 hours to people with no qualifications or even a formal education who will be able to access the Lloyd's of London market; and another has written a book on prostitution showing where "balding, fat guys like your author" can find "Thai virgins".
First Cayman Bank liquidators prepare to sue directors
The liquidators of First Cayman Bank have opened negotiations with the bank's directors and officers with a view to holding them financially accountable for their responsibilities. A lawsuit for negligence is also being considered against the bank's auditors.
This and the fact that professional fees and disbursements totalling $1.16 million were incurred in the first 23 weeks of provisional or official liquidation were the highlights of the second report of FCB's liquidators, Ian Wight and Michael Pilling, of Deloitte & Touche, dated May 14.
Marc M. Harris et Cie SA et al v. David Marchant et al: Amended Libel Complaint
Amended Libel Complaint in Marc M. Harris et Cie S.A., The Firm of Marc M. Harris, Inc., and Marc M. Harris Trust Company, Ltd. v. David E. Marchant and Offshore Business News & Research, Inc. at the U. S. District Court for the Southern District of Florida.
Insider Talking: April 30, 1998
David Walsh, the former head of Bre X Minerals, tried to close a bank account in the Bahamas and take out his entire deposit of $25.3 million two weeks after an audit revealed concluded that the supposedly rich Busang gold
The Harris Organization: a $30 million lawsuit, more fraudulent banks and an airplane
Offshore Alert's exposé on The Harris Organization last month has caused quite a stir, with journalists from several international media organizations showing an interest in following up the story.
Marc M. Harris et Cie SA et al v. David Marchant et al: Libel Complaint
Libel Complaint in Marc M. Harris et Cie S.A., The Firm of Marc M. Harris, Inc., and Marc M. Harris Trust Company, Ltd. v. David Marchant and Offshore Business News & Research, Inc. at the U. S. District Court for the Southern District of Florida.
‘The Harris Matrix’ for hiding money from the IRS and your wife
Offshore Alert has obtained confidential documents that are presented to clients of The Harris Organization advising them how to hide their assets from their creditors, be it the IRS or their wives if they are going through a divorce.
The documents are so sensitive that the cover sheet states: "Under no circumstances may this document be utilized outside the offices of The Harris Organization. Misuse or disclosure of this document is subject to civil and criminal sanctions under Panamanian law."
Marc Harris says: ‘We’re cleaner than clean.’
David Marchant, the publisher of Offshore Alert, flew to the Bahamas on Wednesday, March 25 to meet with Marc Harris at the Radisson Grand Hotel in Cable Beach, near Nassau.
Also present at the meeting were Larry Gandolfi, who is a salesman; Christopher Davy, head of computers; and Alan McAloon, head of trust services.
The Harris Organization’s multi-million dollar Ponzi scheme
Offshore Alert can today disclose that Panama's most-hyped financial services group, known as The Harris Organization, is being run as a massive Ponzi scheme in which clients are being defrauded out of millions of dollars.
The situation is so serious that The Harris Organization, which employs 150 people in Panama, is hopelessly insolvent, with net liabilities of at least $25 million, according to sources knowledgeable of the group's financial affairs.
Gulf Union (Bahamas) finally goes into permanent liquidation
After a hearing that lasted half a day, the Bahamas Supreme Court officially placed Gulf Union Bank (Bahamas) into liquidation on March 26 but deferred a decision on whether to appoint the current provisional liquidators as permanent liquidators.
The court first ruled on two preliminary legal issues regarding the competence and appropriateness of the National Insurance Board, which is a government agency, in being allowed to petition for the winding-up of the bank.
BCCI liquidator wins High Court judgment
The liquidator of the Bank of Credit & Commerce International has won a High Court judgment in London for £17 million ($28 million) against former employees and relatives of a loans officer at the bank, which was closed in 1991.
Two million pounds of the total, representing the value of four residential properties and a unit on an industrial estate in London, will be available immediately to the liquidator, Deloitte & Touche, reported the Financial Times newspaper.
