Investment

Imperial Consolidated Group’s links to High Yield Investment Programs

March 31, 2000

Offshore Alert has obtained documents which implicate the Imperial Consolidated Group in the sale of investment programs purporting to offer guaranteed returns of as much as 30 per cent per month. In one program, Imperial Consolidated offers to pay a return of 9.25 per cent per month while simultaneously paying a 40 per cent commission to brokers who introduce investors.

Harris Organization associate deported from Panama

March 31, 2000

A fugitive American businessman who has been helping The Harris Organization run investment schemes through IBCs set up in the Bahamas and the BVI was deported this month from Panama to the US. Within days of his deportation, Brent A. Wagman was criminally indicted in Texas on charges of masterminding a scheme that defrauded mainly elderly victims of approximately $30 million.

Nevis-based offshore provider criminally indicted in Utah

March 31, 2000

Raymond David Finzer, Managing Director of the Nevis-based LIFE Offshore Group, has been criminally indicted in the United States on charges of mail fraud, wire fraud, money laundering and aiding and abetting. Finzer, 46, and co-defendants Ned Richard Hart, who was a client of Finzer's, and Christian G. Cooper were indicted on March 1 at the US District Court for the District of Utah (Central Division).

Regulators dither over First International Bank of Grenada

March 31, 2000

There has been considerable activity in Grenada over the last month as regulators belatedly try to get to grips with the fact that at least one-third of all banks incorporated on the island appear to be scams. The Grenada International Financial Services Authority, a newly-formed body designed to better regulate the offshore sector, has held several meetings to discuss the First International Bank of Grenada.

Ontario Securities Commission to hold inquiry into Felderhof

March 31, 2000

The Ontario Securities Commission has set aside two months for a hearing into the activities of former Bre-X Minerals Chief Geologist John Bernard Felderhof, who is currently hiding out in the Cayman Islands. Proceedings against Felderhof are due to be held from October 16 to December 22, 2000 at the Provincial Offences Court, Old City Hall, Toronto.

BISX announces first shareholders

March 31, 2000

The Bahamas International Securities Exchange has announced its new, 15-member Board of Directors and is set to start operations on April 14.

Bank of Bermuda (Cayman) officers fired over handling of client accounts

March 31, 2000

Three officers of the Bank of Bermuda (Cayman) have been fired following an internal investigation into the bank's handling of accounts controlled by allegedly crooked client Michael Gause. The Bank of Bermuda confirmed that it terminated the employment of Michael Day, Marc Vanmarsenille and David Spohr on December 8, 1999 following their suspensions a month earlier.

TAC International accused of $12 million fraud

February 29, 2000

Two men accused of running a Bahamas-based scheme that allegedly defrauded thousands of Americans out of more than $12 million were criminally indicted in North Carolina this month. Craig Southwood and Douglas R. Walker, who ran Bahamas-registered TAC International, have each been charged with 17 counts of federal conspiracy, mail fraud, wire fraud and money laundering.

Business as usual for New Utopia after settling SEC lawsuit

February 29, 2000

Ever wondered how you could commit fraud and effectively get away with it even when caught? The case of Lazarus Long, head of the New Utopia fake offshore jurisdiction project, shows how it can be done. Long (a.k.a. Howard Turney) took in $24,000 over 10 months from investors who bought into his dream of building a new offshore center on stilts on shallow coral reefs 100 miles off the coast of the Cayman Islands, according to the SEC. However, he paid no financial penalty and continues to operate his business.

Criminal indictment against Suisse Security Bank & Trust client

February 29, 2000

Bahamas-based Suisse Security Bank & Trust, whose dubious clients have been exposed in the last two editions of Offshore Alert, is the banker to yet another allegedly fraudulent investment scheme, we can disclose. Although not a defendant, the bank is mentioned in a criminal indictment filed at the United States District Court for the Eastern District of California against Larry W. Wilcoxson, David Baxter, C. William Gordin, Roxanne Albaugh and John R. Witzke.

Imperial Consolidated Group launches new offshore credit card

February 29, 2000

Bahamas-based Imperial Consolidated Securities, which has had several scrapes with regulators over the way it promotes its mutual funds, has launched a new offshore credit card with an aggressive promotional campaign that repeats claims that its funds guarantee returns of up to 18 per cent per year. "The Imperial Consolidated HINT MasterCard can be used like a regular credit card but the card offers superb advantages when used in conjunction with Imperial Consolidated mutual funds," states promotional literature.

More lawsuits following collapse of $500 million hedge fund

February 29, 2000

The barrage of litigation surrounding the collapse in January of BVI-registered Manhattan Investment Fund and the disappearance of nearly $500 million continued this month. Five lawsuits were filed at Bermuda Supreme Court during February to go along with the four that were filed at the same court the previous month and one in New York.

FIBG reports fictitious net income of $60 billion

February 29, 2000

The founding chairman of the First International Bank of Grenada has informed Grenada's chief offshore regulator, Michael Creft, that FIBG has made a net income of $60 billion in its first two years in business. The astonishing claim is made in a rambling, 26-page letter sent by Van A. Brink (a.k.a. Gilbert Allen Ziegler) to Creft on December 23, 1999 in an effort to assuage the regulator's concerns about the bank.

The views of Grenada-based banker Peter Johansson on the FIBG scandal

February 29, 2000

As the First International Bank of Grenada scandal made its way onto the front-page of The Wall Street Journal on February 29, Offshore Alert wondered how the negative publicity was affecting the legitimate financial institutions located on the island. Offshore Alert conducted a Question and Answer session with Peter Johansson, CEO of Swedish-owned Bank Crozier Limited, which was the second offshore bank to be licensed in Grenada in October, 1997.

Bermudians flock to invest in Pyramid schemes

February 29, 2000

Bermuda police have been told by their bosses that they are not to sell pyramid schemes on the island after it was disclosed that officers were among those peddling dubious investment schemes to the financially naive. Hundreds of mainly black members of the public attended an investment seminar held at the Bermuda Industrial Union headquarters, according to a report in The Royal Gazette newspaper.

Larry Barnabe – a businessman to be avoided at all costs

February 29, 2000

Offshore Alert has uncovered further disturbing information about the dubious past of another of the senior officers within the First International Bank of Grenada group. As with several other North Americans involved in the FIBG scam, Canadian citizen Laurent Barnabe, who is known as Larry Barnabe, has a history of ripping off investors.

Cheyne Securities Limited

February 28, 2000

Cheyne Securities Limited - Enforcement Actions - Isle of Man Financial Supervision Commission

USA v. Raymond David Finzer, et al: Criminal Indictment

February 23, 2000

Criminal Complaint in USA v. Raymond David Finzer, Ned Richard Hart, and Christian G. Cooper at the U. S. District Court for the District of Utah.

EBI Securities Corporation, Inc. v. Rene Michael Hamouth et al: Entry of Default & Default Judgment

February 15, 2000

Entry of Default and Default Judgment 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.

Germany: Silvio Andre Ziegler

February 10, 2000

Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Germany into Silvio Andre Ziegler for alleged fraud.

‘I resigned of my own accord’, says ex-CEO of Sterling International Bank & Trust

February 1, 2000

Letter to the Editor from Paul Villeneuve, former CEO of Sterling International Bank & Trust.

Charles Homa ‘does not own Banc Caribe’, claims Managing Director

January 31, 2000

Letter to the Editor from Banc Caribe's Managing Director, David Pollock, falsely denying that Charles Richard Homa was a shareholder of Banc Caribe.

New offshore futures fund launched in the Bahamas

January 31, 2000

A new mutual fund that uses a proprietary, automated trading model to invest in futures has been established in the Bahamas. Flexus Futures Fund Ltd. was incorporated in the Bahamas on December 2, 1999 and was this month licensed as

Alternative Risk Reinsurance Company Ltd.: An Analysis

January 31, 2000

Inside Bermuda can today disclose further details about a Cayman Islands-registered company that Stirling Cooke Brown Holdings has been so reluctant to discuss. The reason might be because Alternative Risk Reinsurance Company Limited is a joint venture between Stirling Cooke and the individuals behind New Jersey-based Unicover Managers.

Harris Organization moves closer to collapse

January 31, 2000

There are increasing indications that The Harris Organization financial services group of Panama is edging closer to collapse. Several of the group's clients have contacted Offshore Alert recently to complain that their requests to redeem all or part of their investments have been ignored.

Bahamian jailed for 20 years for $50 million fraud

January 31, 2000

Bahamian businessman George Wilson was this month sentenced to 20 years in prison by a Texas judge after previously being convicted of 18 offences relating to a $50 million dollar fraud.

SEC accuses six people of insider trading regarding Mid Ocean-EXEL merger

January 31, 2000

Six people have been accused of insider trading by the SEC after making a profit of $405,000 from dealing in stock and options of Mid Ocean Ltd. prior to its purchase in 1998 by EXEL.

Lawsuits fly in Bermuda following collapse of $500 m hedge fund

January 31, 2000

Four lawsuits were filed at Bermuda Supreme Court in the last week of January following the collapse of the Manhattan Investment Fund Ltd., which was registered in the British Virgin Islands, managed in New York City and administered and audited in Bermuda.

Cayman-based Ponzi scheme raised at least $45 million

January 31, 2000

At least $45 million from more than 500 investors went into a Cayman/US-based Ponzi scheme that is currently being liquidated, according to a report submitted to a US court as part of an SEC investigation. The net insolvency of the scheme, which revolved around a car title loan business called Cash 4 Titles, has not yet been determined since assets and liabilities are still being assessed.

Wellington Bank & Trust – same scam, different name

January 31, 2000

Offshore Alert has uncovered another highly dubious Grenada-registered bank that is owned by a former bankrupt. Wellington Bank & Trust, which was incorporated on July 27, 1998, is owned by John Edward Brinker Jr. and Gary Joel Bentz, who are both based in Ohio.

Latest on massive Grenada banking fraud

January 31, 2000

Offshore Alert can this month reveal further disturbing details about the massive financial fraud that is being committed on the island of Grenada in what appears to be a joint effort between the island's government and the private sector. What is currently taking place in Grenada mirrors what happened in Montserrat in the late 1980s when approximately 300 'paper' banks established with phantom capital defrauded foreign clients of tens of millions of dollars before eventually being closed down by the UK police in 1989/90.

FIBG hooks up with Alexander’s World (Or could it be Wayne’s World?)

January 31, 2000

Two more companies have listed on the sham Grenada-registered World Investors' Stock Exchange, bringing the total number of listed issuers to approximately 20. They are Bahamas-registered Alexander Development International Corporation and St. Vincent-registered Molecular Waste Technologies Inc.

Imperial Consolidated Group closes Cayman and Barbados offices

January 31, 2000

Questions and Answers between OffshoreAlert and Imperial Consolidated's Bill Godley about the closure of Imperial's offices in Barbados and the Cayman Islands.

Sterling International Bank & Trust and its dubious mutual funds

January 31, 2000

A Grenada-based banking group that appears to be controlled by an attorney located in the Turks & Caicos Islands is promoting dubious investment products, OffshoreAlert can reveal. Sterling International Bank & Trust and its apparent owner, attorney Philip Johnston, have already been involved in one fiasco last year involving the Bermuda-registered Heritage Growth Fund.

Year in Review: 1999

December 31, 1999

January In our first exposé of the year, we give details of a multi million dollar fraud being committed by the First International Bank of Grenada, the World Investors' Stock Exchange, the International Deposit Insurance Company and related parties in

Insider Talking: December 31, 1999

December 31, 1999

The names of the new shareholders in the Bahamas International Securities Exchange are expected to be announced in January. A list of all 45 companies that submitted subscription applications for the recent $5 million private placement has been submitted for

OffshoreAlert Awards For 1999

December 31, 1999

Annual OffshoreAlert Awards for: Worst Regulator, Worst Regulated Jurisdictions, Lie of the Year, Coward of the Year, Crooks of the Year, Jurisdiction in Most Need of a PR Make-Over, Most Small-Minded Decision, Most Arrogant Jurisdiction, Most Stupid Comments, Here Today, Gone Tomorrow Award, and Most Responsible Regulators.

TCI regulator issues warning against three companies

December 31, 1999

The Turks & Caicos Islands Financial Services Commission has published a warning notice that Mercantile Capital Group, Datacorp Capital Securities and Pentagon Securities are falsely claiming to be securities brokers/investment advisers with offices on the island of Providenciales.

Canadian regulators take action against International Financial Privacy Association

December 31, 1999

The Saskatchewan Securities Commission has issued a Temporary Cease Trading Order against two Bahamas-registered companies accused of involvement in prime bank note fraud. International Financial Privacy Association Ltd. and IFPA Ltd., which bank with Bahamas-based Suisse Security Bank & Trust, were among six individuals and companies named in the Orders, which were issued on October 19, 1999.

IDIC moves to Grenada after being closed down in two jurisdictions

December 31, 1999

Grenada regulators have allowed the sham insurer known as IDIC to incorporate on the island after regulators in Nevis and Dominica closed down the company, we can disclose. IDIC was closed down by Nevis regulators on January 27, 1999 and, the following month, was shut down in Dominica, where it had moved.

Ralph Katz et al v. David J. Aubel et al: Registration of Foreign Judgment

December 7, 1999

Registration of Foreign Judgment in Ralph Katz, Howard Weinstein, Steven J. DeAngeles, and Harvey Kahn v. David J. Aubel and Henry Winkler at the U. S. District Court for the Southern District of Florida.

Insider Talking: November 30, 1999

November 30, 1999

Cayman Islands Immigration Board approves Ann Nealon's work permit for Walkers law firm by a vote of two to one; Banc Caribe potential target for Cash 4 Titles victims; Antigua assures USA that William Cooper will be extradited; Scott Oliver leaves Lines Overseas Management; and Hundreds of Caribbean immigrants living in the US and residents of Dominica lose $1.2 million in investment scam.

Three Bank of Bermuda officers suspended as part of Cash 4 Titles investigation

November 30, 1999

Three officers of the Bank of Bermuda (Cayman) have been suspended on full pay pending an internal investigation into the bank's links with an alleged criminal. The bank suspended Michael Day, Marc Vanmarsenille and David Spohr shortly after one of its clients, Michael Gause, was arrested in Florida on October 15.

Imperial Consolidated moves from Bahamas to Grenada after pressure from regulator

November 30, 1999

Imperial Consolidated Securities S. A. has moved its investment division to Grenada following consultations with regulators in the Bahamas, where the company is registered and physically based. The move, which was due to be completed by November 30, followed concerns about the company's involvement in the sale of unregistered securities.

Mezzanine Capital writes off $10 m of worthless German bonds

November 30, 1999

Bermuda-registered Mezzanine Capital Ltd., which appears to be involved in the manipulation of penny stocks in the US, has reported a loss of $10.57 million for the 12 months ended June 30, 1999 after writing off $10.1 million of German bonds. The company, whose shares are listed on the Bermuda Stock Exchange, had disclosed in 1998 that the bonds, which it acquired for one million of its common shares, might be worthless but did not decide to write off the investment until the current fiscal year.

Elderly investor sues Harris Organization representative in Costa Rica

November 30, 1999

A criminal lawsuit has been filed against the head of the Costa Rica office of The Harris Organization financial services group after an elderly US investor claims she was unable to redeem her investment. Floyce Capmany, 72, who lives in Nevada, claims she is still owed $37,668 of a $70,000 investment she made through The Harris Organization's sales office in Costa Rica in 1998.

Stock Generation may be close to collapse

November 30, 1999

It appears that Dominica-registered Stock Generation, which operates a Ponzi scheme dressed up as an investment game that is played over the Internet, may be about to collapse. The company, whose dubious game was featured in the September edition of Offshore Alert, has, by its own admission, stopped paying out participants.

NimsTec seeks listing on NASDAQ under the name ‘i3Dx.com’

November 30, 1999

A company linked with former Bermuda Premier Sir David Gibbons is involved with a fresh attempt to raise capital for a product that has lost investors tens of millions of dollars over two decades of failure. Nevada-registered i3Dx.com, which is a front for Bermuda-based NimsTec Limited, registered 100 million shares with the SEC on November 12, 1999.

Eurofed Bank goes into receivership

November 30, 1999

Antigua-registered Eurofed Bank Ltd. has been placed into receivership by the island's regulators over its suspected involvement in money laundering. Eurofed, which also has a banking license in Grenada, went into receivership on or around November 15 after being implicated in a scandal involving Pavlo Lazarenko, a former Prime Minister of the Ukraine.

BVI implements new anti-money laundering measures

November 30, 1999

The British Virgin Islands government has implemented two new measures designed to combat money laundering. They are the Anti-Money Laundering Code of Practice (made under section 27 of the Proceeds of Criminal Conduct Act) and the Proceeds of Criminal Conduct (Designated Countries and Territories) Order 1999 (made under section 32 of the Proceeds of Criminal Conduct Act 1997).