Investment

Sunclear Energy sued for alleged fraud

November 30, 2002

A civil complaint alleging securities fraud has been filed in the United States against a firm whose unregistered shares are sold at offshore events.It is the latest in a long line of controversies surrounding Sunclear Energy Inc., its bankrupt affiliate

Temple Mortgage Fund reports heavy losses

November 30, 2002

Turks & Caicos Islands based Temple Mortgage Fund Ltd. has informed its 350 investors of losses due to downgrading the valuation of property on its books. As a result of the re evaluation, the fund incurred a loss of 19.02

Mezzanine Capital shares de-listed from Bermuda Stock Exchange

November 30, 2002

A Bermuda domiciled firm linked to fraud allegations involving over the counter stocks traded in the United States has voluntarily de listed its shares from the Bermuda Stock Exchange.In a press release on November 12, the BSX stated the shares

Former offshore insurance officer flees US despite monitoring device

November 30, 2002

A suspected fraudster who has worked in the insurance industry in Bermuda and the Bahamas has gone on the run again despite being fitted with an electronic monitoring device.John Keith McGarrity was fitted with the monitoring device after being arrested

Have you heard the one about the Governor, the Senator and the ‘Doctor’?

November 30, 2002

Naïve or cynical? That was a logical question to ask of United States Senator Hillary Rodham Clinton and Governor George Pataki after they teamed up with suspected fraudster Jerry C. Nims, whose Bermuda based business failures have cost investors millions

Vancouver regulators raid boiler room that promoted stock of Brek Energy

November 30, 2002

A raid on an alleged boiler room in Vancouver is further evidence that the Bank of Bermuda may have been conned out of $14.3 million when it invested in First Ecom.com Inc.

Mutual Risk Management finally files 2001 financials

November 30, 2002

At a time when Mutual Risk Management was desperate for cash to meet its liabilities, its then Chairman and CEO, Robert Mulderig, owed the firm an advance of $318,303, according to an SEC filing. Details of the debt, which has

Popular newsletter/investment club firm sues SEC

November 30, 2002

Baltimore based Agora Inc., which operates investment clubs and newsletters and claims to have tens of thousands of clients, has filed a complaint against the SEC, which is investigating one of its subsidiaries, Pirate Investor LLC. Agora, Pirate Investor and

Terry McKolskey sues former employer in TCI

November 30, 2002

The former General Manager of Lines Overseas Management (Cayman) has filed a civil complaint against an investment firm based in the Turks & Caicos Islands. Canadian national Terry McKolskey, who left Cayman in or around 1998 amid allegations of impropriety,

GTrade founder Andy Mann also operates Nauru bank with fellow fraud suspect, OffshoreAlert can reveal

November 30, 2002

OffshoreAlert has established a link between a businessman suspected of committing fraud and money laundering in the United States and Costa Rica and a sham offshore Internet stock exchange. The connection between Tim Ray Sacora, of Deerfield Beach, Florida, and

Canadian regulators raid boiler room

November 9, 2002

Canadian securities regulators and armed police have raided a Vancouver boiler room operation closely linked with Brek Energy, whose offshore investors, including the Bank of Bermuda and clients of Lines Overseas Management, have lost tens of millions of dollars in

Insider Talking: October 31, 2002

October 31, 2002

In the wake of action taken by Swiss authorities against the Zurich based Sovereign Finance Group, which is being investigated for money laundering involving Russia and the Caribbean, regulators in St. Vincent & the Grenadines are taking action against Sovereign

Five years in prison for Cash 4 Titles boss Richard Homa

October 31, 2002

Another of the masterminds behind a massive investment fraud that cost the Bank of Bermuda tens of millions of dollars has been sentenced to five years in prison. Charles Richard Homa was also ordered to pay restitution of $157 million

XL Capital partners with PlusFunds in hedge fund industry

October 31, 2002

XL Capital has formed a strategic relationship with PlusFunds Inc. to support the development of investment products based on Standard & Poor's latest index, the S&P Hedge Fund Index."The Index is designed to be investable and representative of the broad

Self-dealing CEO Gregory Pek retires from Brek Energy

October 31, 2002

Canadian national Gregory Pek has retired as President and CEO of loss making Brek Energy, formerly First Ecom.com, and been replaced by 57 year old Richard Jeffs.Pek stepped down only a few months after overseeing Brek's purchase for $770,000 of

Dennis Herula jailed again

October 31, 2002

Businessman Dennis Herula, who was jailed for fraud in Bermuda 11 months ago, has been imprisoned again, this time in the United States for contempt of court.Herula was jailed on October 24, 2002 by Judge Mary M. Lisi, sitting at

Bank of New York to acquire assets of International Fund Administration Ltd.

October 31, 2002

The Bank of New York has signed an agreement to acquire the assets of International Fund Administration Ltd.

Panama regulators warn against unlicensed ‘Tulip Fund’

October 31, 2002

The Panamanian Securities Commission has issued an alert against an unlicensed mutual fund with links to The Harris Organization financial services group.In an advisory dated October 25, 2002, La Comisión Nacional de Valores warned that Tulip Universal Project S. A., d.b.a. the Tulip Fund, has no license in Panama to market securities.

Former offshore banker David Taylor arrested in UK fraud investigation

October 31, 2002

The former General Manager of Overseas Development Bank & Trust, of Dominica, and three accountants in the United Kingdom have been arrested as a part of an investment fraud investigation.David Taylor was arrested and granted police bail in Leicestershire, England, in October, along with Shinder Singh Gangar, Alan White and Ian Collins.

Regulators pressure Omnicorp to sell investment portfolio, will probably revoke license

October 31, 2002

Pressure from regulators in St. Vincent & the Grenadines has caused Omnicorp Bank Inc. to take steps to sell its investment portfolio, after which it is expected to lose its banking license.The local Offshore Finance Authority stepped in due to concerns about the solvency of Omnicorp, which had offered clients annual interest of up to 60 per cent.

Unlicensed fund ‘Orion International’ collapses

October 31, 2002

In a collapse that is strikingly similar to The Genesis Fund, a Dominica-based group also purporting to trade foreign currency has informed its clients that virtually all of their funds have been lost.Russell Cline, "Head of Trading" of Orion International, posted a letter on its web-site at www.orionfx.com in August, 2002 stating that "in excess of 90%" of pooled money had gone.

Unlicensed Genesis Fund collapses amid fraud allegations

October 31, 2002

An ordinary IBC in Nevis that operates as an unlicensed mutual fund has collapsed owing an estimated $50 million to approximately 1,100 shareholders.Approximately $100 million is believed to have gone into The Genesis Fund Ltd. but about half of it was repaid as interest payments, according to a client's representative.

Evergreen Security’s William Zylka sentenced to 6-18 years in prison

October 31, 2002

A principal of an unlicensed mutual fund incorporated in the British Virgin Islands and managed in Florida was sentenced in October to serve six to 18 years in state prison in the United States.William J. Zylka, who helped to operate Evergreen Security Ltd., had previously pleaded guilty to multiple counts of grand larceny, fraud and conspiracy at New York State Supreme Court.

Jerome Schneider resurfaces with promotional brochure

October 30, 2002

A well-publicized IRS investigation into the activities of U. S. citizen Jerome Schneider has done little to dampen his enthusiasm for aggressively promoting dubious offshore products.In October, OffshoreAlert was a recipient of a mass mailed, 24-page, color, glossy promotional brochure from Schneider titled "New Wealth Perspectives".

United Kingdom: John Abrahamson et al

October 24, 2002

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in the United Kingdom into alleged fraud by John Abrahamson, Geoffrey Brailey, Roger Eden and Jeffrey Fowler, who were all former directors of Corporate Services Group Plc.

SEC v. Florida Stock Transfer, Inc. et al: First Amended Complaint

October 22, 2002

First Amended Complaint in SEC v. Florida Stock Transfer, Inc., Vector Holdings Corporation, and Allen Weintraub at the U. S. District Court for the Southern District of Florida.

Glade W. James v. Richard Day et al: Complaint

October 18, 2002

Complaint in Glade W. James, individually and as Trustee; Kirt W. James, Intrepid International Ltd., HJS Financial Services, Inc., Shibewalt Management, Inc., Intrepid International SA, Oasis Entertainment, LLC, Oasis Entertainment's Fourth Movie Project, Oasis Entertainment Corp, and Glenneyre Capital Corp. v. Richard Day, American Registrar & Transfer Co., Greg Harry, Jeff Harry, Jenna Harry, William S. Stocker, J. Dan Sifford, Jr., Karl E. Rodriguez, Karl E. Rodriguez Ltd., JeffJena Ltd., Anneius Equity Management, Inc., Polyandrous Trading Group Ltd., Exim International Inc., Glenneyre Equity Group Ltd., Dana Leasing, Inc., Patagonia Development SA, Patagonia Commercial SA, Quicksilver Development SA, Marshall Worldwide Ltd., Titan Capital SA, B&V Union Technologies Inc., Jozette Jamie Lee, Pam Fernley, Gaynell T. Harry, The Leeward Family Trust, The Albright Living Trust, Laurencio Jaen, Leopoldo Kennion, Teodoro F. Franco, Nixia Aurora Zerna, Kevin Harrington, Tim Harrington, Reliant Interactive Media Corp., Union Bank of California, Union Securities Ltd., Dominic Busto, Madison Stock Transfer, Inc., Michael Ajzenman, Bank of Montreal, Deborah Caldwell, Equitrade Securities Inc., Don Carrig, Stephen H. Roebuck, Kim Carroll, Canaccord Capital Corp., Brad Scharfe, John Skinner, MJK Clearing Services, Royal Bank of Canada, West America Securities, Banco de Costa Rica, Yorkton Securities, Tar Financial Group Inc., Cal Meese, Tarja Mordo, Morgan Stanley Dean Witter & Co., Richard Frank, Emily Ysais, Global Securities, Steve Regoci, Dundee Securities, John Horword, ED&P Investments AG, Erwin Haas, MFC Merchant Bank SA, Marta Pardo, Michael Smith, Golden Capital Securities, Ltd., Mellon Securities Trust Corp., Swiss American Securities, Lines Overseas Management, Trevo Kidd, Cardinal Capital Management Inc., Chris Dorst, Bank August Roth AG, Credit Lyonnais (Schweiz) AG, Bank Sal. Oppenheim jr. & Cie. (Schweiz) Ltd., Public Securities, and Michael Bascetta at the U. S. District Court for the District of Utah.

Imperial Consolidated administrator warns of dubious ‘asset recovery’ scheme

October 14, 2002

Imperial Consolidated administrator Mazars Neville is warning victims of the Imperial fraud to be wary of approaches for money by Weddington Holdings Ltd., which may be an advance fee fraud.Weddington has been telephoning and emailing clients of Imperial and asking them for $2,500 each to purportedly fund an "Asset Recovery Program" outside of that being conducted by Mazars Neville.

Tulip Fund: Investment Brochure

October 12, 2002

Promotional Brochure for the Tulip Fund, a short-lived, unlicensed investment fund in Panama - October 12, 2002

United Kingdom: Hercules Holdings

October 11, 2002

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in the United Kingdom into suspected investment fraud by William Booth Cook and Donald Nutter.

Endovasc Ltd. Inc. v. JP Turner & Co. LLC et al: First Amended Complaint

October 9, 2002

First Amended Complaint in Endovasc Ltd. Inc. v. J.P. Turner & Co. LLC, KCM Group LLC, The Keshet Fund LP, Sichenzia Ross & Friedman LLP, Keshet LP, Nesher Ltd., Talbiya B. Investments Ltd., Balmore Funds SA, David Grin, LH Financial Services Corp., Laurus Master Fund Ltd., Laurus Capital Management LLC, Celeste Trust Reg, and Patrick Power at the U. S. District Court for the Southern District of New York.

CFTC v. Sterling forex LLC et al: Complaint

October 3, 2002

Complaint alleging fraud in Commodity Futures Trading Commission v. Sterling forex LLC and Maurice L. Mills at the U. S. District Court for the Western District of Washington.

Latin America Round Up: September 30, 2002

September 30, 2002

ARGENTINAMenem off the hook, for the moment Judge Julio Speroni concluded there is not enough evidence to indict former President Carlos Menem in the case of the illegal arms sale to Croatia and Ecuador. Judge Speroni added, though, that Menem

Insider Talking: September 30, 2002

September 30, 2002

The Imperial Consolidated fraud has taken a further turn for the bizarre with the distribution in September of several press releases, masquerading as news stories, by a newly incorporated British company called Matrix International (Management) Ltd., whose commercial address is

Paul Lemmon denied bail in Florida

September 30, 2002

Bermuda company director Paul Lemmon has been refused bail in the United States after the judge ruled there was a "serious risk" that he would flee or obstruct justice if released on bail."The weight of the evidence against the Defendant

Stirling Cooke changes name to AlphaStar Insurance Group

September 30, 2002

Crisis firm Stirling Cooke Brown Holdings has changed its name to AlphaStar Insurance Group Ltd., effective September 30, in its latest attempt to shed itself of its poor image.The firm stated that its "Board of Directors had decided that a

Dennis Herula faces new prison threat

September 30, 2002

Businessman Dennis S. Herula, who was jailed for one month in Bermuda nine months ago trying to open a bank account with false documents, is facing prison again - this time in his native United States.A hearing has been set

Robin Cotterell firm agrees to arbitration award

September 30, 2002

A second arbitration award has been issued against International Depository Trust Corporation, which is operated by alleged mafia associate Joseph Andy Mann and Nevis based offshore provider Robin Cotterell.An application to confirm the award was filed at the United States

Default judgment entered against Eric Resteiner

September 30, 2002

A United States national who was once appointed a 'Roving Ambassador' to the Caribbean island of Grenada has had a $30 million default judgment entered against him in the United States.Eric E. Resteiner, a one time resident of the Bahamas,

David Siegel faces prison for contempt

September 30, 2002

Florida based businessman David H. Siegel looks set to become the latest suspected investment fraudster to choose money over prison.The SEC filed a contempt of court motion against 65 year old Siegel on September 27, 2002 after he failed to

Thierry Nano sues liquidator of his offshore banks

September 30, 2002

Thierry Nano, who is wanted in the United States on suspicion of money laundering, has filed a civil complaint in New York against the liquidator of his offshore banks.Defendants in the action are PricewaterhouseCoopers and Marcus A. Wide, a PWC

Former bankrupt (x2) and scam victim touts forex scheme

September 30, 2002

A twice bankrupt businessman who once fell victim to a foreign currency exchange scam is promoting his own Forex scheme and telling participants it is "realistic" to expect monthly returns of four per cent.Maurice Lewis Mills, 37, operates Washington State-based Sterling forex LLC, which claims it has "fulfilled CFTC Compliance requirements to offer forex trading advisory services to U.S. Clients".

The Genesis Fund Ltd.: Equity Recovery Plan

September 24, 2002

The Genesis Fund Ltd. Equity Recovery Plan - September 24, 2002

Belgium: Lernout & Hauspie et al

September 17, 2002

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Belgium into Jozef Lernout, Pol Hauspie and Lernout & Hauspie for alleged fraud.

Brazil: Wagner Baptista Ramos

September 12, 2002

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Brazil into allegations of money laundering, corruption, deviation of public funds and illegal trading in false securities involving Wagner Baptista Ramos and others.

Endovasc Ltd. Inc. v. JP Turner & Co. LLC et al: Complaint

September 11, 2002

Complaint in Endovasc Ltd. Inc. v. J.P. Turner & Co. LLC, KCM Group LLC, Kingdon Capital Management LLC, The Keshet Fund LP, Sichenzia Ross & Friedman LLP, Keshet LP, Nesher Ltd., Talbiya B. Investments Ltd., Balmore Funds SA, David Grin, LH Financial Services Corp., Laurus Master Fund Ltd., Laurus Capital Management LLC, Celeste Trust Reg, and Patrick Power at the U. S. District Court for the Southern District of New York.

USA v. Sylvia Hermann: Criminal Complaint

September 10, 2002

Criminal Complaint in USA v. Sylvia Hermann, a.k.a. Sylvia A. Ilcken, at the U. S. District Court for the Central District of California.

Belgium: Lernaut & Hauspie et al

September 5, 2002

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Belgium into Jozef Lernaut, Pol Haupsieof Lernaut & Hauspie and Lernout & Hauspie Speech Products for alleged fraud, forgery, insider dealing and price manipulation.

USA v. Richard F. Downes: Objection to Presentence Report

September 4, 2002

Defendant's Objection to Presentence Report and Motion for Downward Departure in USA v. Richard F. Downes at the U. S. District Court for the Southern District of Florida.

Germany: Edmund Ballier et al

September 3, 2002

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Germany into Edmund Ballier, Friedrich-Karl Gradl, Detlev Pinnow, Gerd Ullrich, Fritz-Heinz Bosking, Wolfgang Hummer, Philipp Schauer, Ludwig Schauer and others for alleged fraud.