‘We demand an apology’, says Sunclear Energy’s Randy Akers
Letter to the Editor of OffshoreAlert from Randy Akers, President, Sunclear Energy Inc.
Regulatory Warnings: June 30, 2002
Recently-filed warnings from securities regulators around the world.
Vultures circle Mutual Risk Management: Three class action lawsuits filed
Three Class Action lawsuits were filed against Bermuda-based insurance firm Mutual Risk Management and three of its current and former officers in June.
The complaints were all filed at the United States District Court for the Southern District of California, in San Diego, on June 7, June 24 and June 25.
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.
Lincoln Fraser blames OffshoreAlert for Imperial Consolidated’s problems
After many months of refusing to be interviewed by OffshoreAlert, Imperial Consolidated co-founder Lincoln Fraser finally responded to questions about his business activities on June 30. In an email, Fraser inferred that it was inaccurate to state that Imperial had "collapsed" and disputed our assertion that he had a track record of failure in business, even though he was petitioned into bankruptcy in 1996 by a creditor, was last year disqualified from serving as a company director for four years in the UK and has managed at least two previous firms which were compulsorily wound-up by their creditors, namely Progressive Leisure Ltd. and Fraser Brook Corporation Ltd.
Ralph Hines indicted for fraud in North Carolina
Suspected investment fraudster Ralph Glen Hines was criminally indicted at the United States District Court for the Eastern District of North Carolina on June 6, 2002,Hines, who has multiple prior criminal convictions, was indicted on ten counts relating to an allegedly fraudulent scheme operated from November, 2000 to January, 2002. Hines is alleged to have defrauded $1.158 million from parties who are not named in the indictment, using his account at Central Carolina Bank and Trust, in Raleigh, North Carolina to handle funds.
Cambridge International Bank files action against former principal
Cambridge International Bank & Trust, whose banking license was revoked in Grenada last year, has brought a lawsuit in the United States against its former principal, David Frank Rowe.
The action was filed as an Adversary Proceeding at the United States Bankruptcy Court for the Southern District of Mississippi on May 13, 2002.
Suspicious trading in shares of Brek Energy, formerly First Ecom
Stock manipulation or a happy coincidence? That is the unanswered question surrounding the recent share activity of perennial loss-maker Brek Energy, formerly First Ecom.com.For more than ten months, the firm's shares had closed at below $1 on the Nasdaq National Market System in breach of the Exchange's $1 minimum bid requirement for continued listing.
Bermuda firm suspected of fraudulent transfer of assets
A company partly-owned by former Bermuda Premier Sir David Gibbons and other Bermuda-based investors is being investigated for a suspected fraudulent conveyance of assets in the United States.
It is the latest chapter in the sordid saga of NimsTec Ltd., a 3-D technology firm which - together with predecessor companies and affiliates - has lurched from one fiasco to another over many years.
Regulators in Bahamas and Canada warn against offshore ‘bank’
The Central Bank of the Bahamas has issued a warning against an unauthorized bank operating from Nassau following details of the illegal activity in last month's edition of OffshoreAlert.On June 6, 2002 - six days after our article - the Central Bank issued a "Warning Notice" that Alpha Credit Union, of 51 Frederick Street, P.O. Box CB-12287, Nassau, was not licensed in the Bahamas.
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.
USA v. Richard F. Downes: Plea Agreement
Plea Agreement in USA v. Richard F. Downes.
Germany: Hans-Jurgen Henning
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Germany into Hans-Jurgen Henning and others for alleged fraud.
Class action lawsuit filed against Mutual Risk Management
A class action lawsuit has been filed in California against Mutual Risk Management Ltd. and three of its current or former senior officers, alleging misrepresentation of the firm's finances.
The civil lawsuit was filed at the United States District Court for the Southern District of California on June 7, 2002.
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.
CIBC World Markets Corp. v. Rani Jarkas: Cross-Complaint
Cross-Complaint filed by CIBC World Markets Corp. against Rani Jarkas at California Superior Court, San Francisco County.Â
Bank and trust license revocations in the Bahamas
Falcon Trust Co. Ltd. has had its license revoked by the Central Bank of the Bahamas on the grounds that it was "operating in a detrimental manner". The revocation was effective March 22, 2002.Nine other financial institutions had their licenses
Conman Vidar Lunoe pleads guilty to investment fraud-related charges in Bermuda
A 37 tear old man of dual Norwegian and UK nationalities has pleaded guilty to fraud related charges at Magistrates Court in Bermuda, according to a report in The Royal Gazette newspaper.Vidar Lunoe pleaded guilty to three counts of forgery
Grenada regulators extend control of Imperial Consolidated’s offshore bank
Grenada's Ministry of Finance has extended the control of its agent, PricewaterhouseCoopers, over Imperium Bank until June 9 while it prepares to shut it down permanently.Regulators also want to close the mutual funds that the bank administers but have been
Offshore banker Gary Bentz jailed for contempt
Former offshore banker Gary J. Bentz was sentenced to prison for contempt of court in the United States on May 23.Bentz was found to have violated an asset freeze order by "secretly spending up to $142,000 in funds frozen by
Britex International’s Colin Barr explains group’s relationship with Imperial Consolidated
OffshoreAlert has received several inquiries over the last month from people around the world who have invested with Imperial Consolidated's offshore mutual funds. Some of them said they invested through a broker called Britex International, whose promotion of Imperial's funds
Third arrest warrant issued in investigation of Atlas Financial Group
An arrest warrant has been issued in the Turks and Caicos Islands against a third person suspected of fraud involving Atlas Financial Group (in liquidation), namely Robert D. Whitney, who is AFG's former Chief Operating Officer. It follows arrest warrants that
Abraczinskas and West sentenced, Giraud, Boeger and Requena plead guilty
Two offshore bankers have been given lengthy prison sentences in the United States for money laundering. The stiffest sentence was given to William J. Abraczinskas, who was sentenced on May 20 to 121 months in prison, three years of supervised release
Keith King firm fails in attempt to have former client jailed
A defunct company controlled by British businessman Keith Leslie King has failed in an attempt to have a former client imprisoned in the Isle of Man. City & International Securities Ltd. had petitioned the High Court of Justice to hold
Michael Gause sentenced to 10-plus years in prison for Cash 4 Titles scam
Michael Gause, who was one of the principals of the Cayman based Ponzi scheme known as Cash 4 Titles, has been sentenced to ten years and seven months in prison in the United States. Gause was also ordered to pay
Lawsuit filed against Meridian Investment Bank
A civil complaint has been filed in the United States against a now defunct Grenada licensed offshore bank and its principals by a client seeking the recovery of $6 million. In an action brought at the Circuit Court for the
‘Goldman Sucks’: Stirling Cooke’s sponsor performs just as badly in London
Goldman Sachs, which took Stirling Cooke Brown public in 1997 without disclosing its principals' history of fraud, has finished bottom of an IPO performance league table for the London market.
Imperial Consolidated Group’s offshore liabilities estimated at $170 m
The Imperial Consolidated Group has offshore liabilities of approximately $170 million and has so far been unable to provide evidence to regulators that it has any substantial assets, OffshoreAlert can reveal.
Imperial has not even been able to produce any books, let alone assets, according to a source who is familiar with the current investigation into the group by Grenada's Ministry of Finance.
76 lawsuits filed against Evergreen Security brokers
Seventy-six new lawsuits have been filed by the Bankruptcy Trustee of a fraudulently-run offshore 'mutual fund' known as Evergreen Security, which is insolvent by approximately $200 million.
The actions, which have been filed in Florida, seek to reclaim more than $8.1 million that was allegedly fraudulently transferred by way of commissions to promoters of Evergreen.
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.
Spain: Port Kenny Holding SL
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Spain into Alberto Ortega Diaz, Fernando Heras Castan, Pedro M. Llorente Malo, Francisco Javier Munoz Ponce, David Santiago Suarez, Manuel A. Diaz Fernandez, Ignacio Jose Correa Sureda and Santiago Maroto Illera for alleged securities fraud involving Port Kenny Holding SL.
Rani Jarkas v. CIBC Oppenheimer Corp. et al: Complaint
Complaint filed by Rani Jarkas against CIBC Oppenheimer Corp. and David Carey at California Superior Court, San Francisco County.
SSBT Provisional Liquidator wins partial victory in battle for assets
The Provisional Liquidator of Bahamas-based Suisse Security Bank and Trust has won a partial legal victory in his attempt to recover the bank's assets and protect it from lawsuits in the United States.
Court judgment against David Rose energy company
A company operated by David G. Rose, who promotes unregistered oil and gas shares at offshore conferences, has lost a judgment in the United States District Court for the Eastern District of Louisiana.On March 28, 2002, Judge Martin Feldman ruled that Nevada-registered Rose Energy Ltd. had forfeited its interest in an oil, gas and mineral well at Jefferson Parish, Louisiana.
Change of Plea Hearing for Rodolfo Requena
A change of plea hearing has been set for May 9 for Rodolfo A. Requena, the former Chairman and President of Dominica-based British Trade and Commerce Bank who is charged with money laundering.Requena, 51, previously pleaded not guilty to one count of money laundering and one count of conspiracy to commit money laundering at the U. S. District Court for the Southern District of Florida.
Regulatory Warnings: April 30, 2002
Recently-filed warnings from securities regulators around the world.
Former Grenada banker sentenced to more than 17 years in prison
Former offshore banker Kenneth Payne has been sentenced to 17 years and seven months in prison after pleading guilty to five counts of mail fraud and one count of money laundering in the United States.Payne, who helped to operate the now defunct 21st Century Banking Group, in Grenada, was sentenced on April 12, 2002 at the United States District Court for the District of Southern Indiana.
Keem Kalfon sets up web-site to defend himself against Jew haters
As more evidence emerges casting doubt on the business affairs of alleged investment fraudster Keem Kalfon, he has set up a web-site where he denounces his critics as "Jew haters" and "cowards".Kalfon set up the site at www.keemkalfon.com in April after OffshoreAlert began reporting about his involvement in alleged investment fraud.
Grenada regulators take administrative control of Imperium Bank
The future of the Imperial Consolidated Group has been thrown into doubt after regulators in Grenada took administrative control of its offshore bank.
Imperium Bank cannot make any financial disbursements without the consent of PricewaterhouseCoopers, which is conducting a 15-day review of its books at the behest of the government.
Former offshore banker David Rowe files for bankruptcy
Former offshore banker David Frank Rowe has filed for bankruptcy in the United States citing liabilities of $33.1 million and cash assets of just ten dollars.
His biggest liability is listed as $30 million relating to a breach of contract claim by the now-defunct, Grenada-based Cambridge International Bank and Trust, of which he was a principal.
Bank of Bermuda Nasdaq listing – possible arbitrage opportunities
The secondary listing of Bank of Bermuda shares on Nasdaq, effective April 23, has created arbitrage opportunities for traders.Between its U.S. listing debut and the end of April, the bank's stock closed at a higher price on Nasdaq than the BSX on day, once by as much as $1. Nasdaq volume was more than 12 times greater.
Arizona AG demands documents on Arthur Andersen’s Bermuda captive
Arthur Andersen has caused outrage in Arizona by backing out of a $217 million fraud settlement, apparently because its Bermuda-registered captive was unwilling or unable to cover the loss.The accounting firm then compounded its critics by failing to fully comply with a subpoena duces tecum issued by the Arizona Attorney General on April 2.The subpoena required the production - within 48 hours - of documents showing the financial condition of the Arthur Andersen group and Professional Services Insurance Company Ltd., of Bermuda.
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.
Grenada acts against three offshore banks
Grenada's Minister of Finance, Anthony Boatswain, has publicly announced that a review is being carried out of three offshore banks: Imperium Bank, AvantGuard Bank and CornerStone International Savings and Investment Bank.
USA: Tim Ray Sacora et al
Application for the issuance of Letters Rogatory by the USA regarding evidence in Costa Rica that is required for a criminal investigation into Tim Ray Sacora, Michael Wolf, Gibraltar Bank of Commerce, Banco Solidario de Costa Rica, Florida Secured Funding, and Senior Marketing Consultants Inc. for suspected fraud and money laundering.
Canada’s ‘W-Five’ program to feature offshore promoter Yank Barry
Bahamas-based businessman Yank Barry, who is a twice convicted criminal, will be the subject of an investigative Canadian television program due to air at 10 PM
EST, Sunday, April 21, 2002.
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Barry will be featured on CTV's 'W-Five' program, which is Canada's equivalent of '60 Minutes' in the United States.
Clients complain about RK Grace & Co. and John Kaweske
A complaint against Florida-based RK Grace and Co. and its principal, John D. Kaweske, has been made to the National Association of Securities Dealers by clients of its now-defunct Panama arm.
OffshoreAlert understands that at least two separate clients of the Panamanian operation claim they cannot redeem investments totaling in excess of $250,000.
Regulatory Warnings: March 31, 2002
Recently-filed warnings from securities regulators around the world.
Arms dealer obtains asset freeze order against Imperial Consolidated Group
A Spanish court has issued an order that allows an international arms dealer and a related firm to freeze $8.5 million of assets belonging to the Imperial Consolidated Group.
The order was issued on March 8, 2002 by the Court of the First Instance, in Marbella against Imperial Consolidated Inc., of Delaware; Imperium Bank, of Grenada; and Consolidated Mining Corporation Inc., of the Bahamas.
Ernst & Young (Bahamas) settle racketeering lawsuit for $3 million
Ernst & Young (Bahamas), its Senior Partner, Paul Clarke; and its former Managing Partner, Bahamian politician Philip Galanis, have agreed to pay $3 million to settle a civil lawsuit alleging racketeering.
Details of the settlement are contained in documents that were recently filed at the United States District Court for the District of Arizona.