MRM and insiders snap up the company’s stock
Mutual Risk Management and its officers and directors have taken advantage of the recent massive collapse in the company's stock price by aggressively snapping up shares on the open market.
Bank accounts frozen after Cash 4 Titles businessman arrested
Two weeks after an article in the September 30th edition of OffshoreAlert about a Bahamas-based mutual fund - Olympia Fund - that invests in a business known as Cash 4 Titles, C4T's funds were frozen following criminal and civil action in the United States.The problems came with the arrest in Fort Lauderdale on October 15 of Michael E. Gause, who helps to run the underlying business in which the fund invests.
Cayman Financial Brokerage House closes amid losses and police investigation
A trading/brokerage operation known as The Cayman Financial Brokerage House Ltd. closed its doors in early October amid reports that it has heavy debts and is being investigated by local police.
Bahamas entities sued over alleged fraud
A multi-millionaire Canadian geophysicist has filed a lawsuit in Canada against Barclays Bank (Bahamas) and others claiming he was defrauded of US$1.5 million.Theodore Rozsa, who is in his eighties, claims to have been swindled out of his funds by conmen peddling a fake investment scheme and blames Barclays Bank and Swiss-based private bank Darier Hentsch et Cie for contributing to his loss through alleged negligence.
FIBG latest: Dodgy share offerings and more ‘paper’ firms list on sham stock exchange
The latest phase of what is turning out to be one of the most extravagant offshore frauds ever involves the sale of shares over the Internet, supposedly to finance a 120-room luxury resort hotel in Grenada and an on-line casino.
Investors in the resort project are "guaranteed" annual dividends of between 25-30 per cent, depending on the amount invested, even before anything has been built, while shareholders of the casino venture are promised 35 per cent annually.
TCI company accused of bilking Japanese firms of $1 billion
The SEC and the Commodity Futures Trading Commission this month filed separate complaints alleging securities fraud against a businessman whose Turks & Caicos Islands-registered entity racked up investment losses estimated at $1 billion.Both complaints were filed on September 13 at the U. S. District Court for the Southern District of New York against New Jersey-based Martin A. Armstrong, aged 50; Turks & Caicos Islands-registered Princeton Economics International Ltd. and Princeton Global Management Ltd.
Stock Generation Internet game: ‘So what if it’s a Ponzi scheme?’
OffshoreAlert takes a comprehensive look at the Internet-gaming pheneomenon called Stock Generation, that is growing at a rapid pace even though it appears to be a Ponzi scheme.
Stirling Cooke’s little-known Cayman affiliate
The Bermuda-based Stirling Cooke insurance group is a shareholder in a little-known reinsurer called Alternative Risk Reinsurance Company Limited that is registered in the Cayman Islands and managed by Mutual Risk Management (Cayman) Limited.
Details of four UK lawsuits filed against Stirling Cooke Brown Holdings
Inside Bermuda has obtained specific details about four of the seven lawsuits filed against Stirling Cooke Brown Holdings and/or related entities in the High Court of Justice, Queen's Bench Division Commercial Court, in the UK.
BVI regulator responds to judge’s ruling against The Harris Organization
In the face of an onslaught of pressure from the international community, offshore regulators have been quick to claim over the last few years that they are not havens for criminal activity.However, the proof of the pudding is, as they say, in the eating.
FIBG ‘auditor’ has no CPA licence, co-owner indicted in US
Offshore Alert can this month report further disturbing revelations about the First International Bank of Grenada that make a mockery of the island as a legitimate financial centre.One of the most shocking discoveries is that the annual financial statement filed recently by the bank with regulators was signed by a former bankrupt with a criminal record who is passing himself off as a CPA.Nevada-based accountant Kenneth Nelson Craig had his CPA licence revoked in the US in 1996 after committing an appalling number of offences, including swindling three clients out of $81,000.Equally disturbing is news that one of FIBG's owners, Roger V. Cagle, has been criminally indicted in New Jersey on charges of racketeering, bribery and conspiracy to defraud the United States.
Bermuda Commodities Exchange loses money for AIG
The Bermuda Commodities Exchange, which suspended trading in the first week of August, appears to have been an expensive failure for the American International Group.AIG is believed to have borne the brunt of the estimated losses of more than $2 million suffered by the experimental insurance derivatives exchange in its two -year life-span.
Rudolph Linschoten given prison sentence in California
Investors International founder Rudolph Linschoten was sentenced on September 13 to serve 60 months in prison after pleading guilty to conspiracy and securities fraud at the US District Court for the Central District of California.
Aristocrat Endeavor Fund Ltd.: Information Memorandum, 1999
Information Memorandum for Aristocrat Endeavor Fund Ltd - September 1, 1999
Harris Organization appeals libel decision
The Harris Organization financial services group of Panama has served official notice that it will appeal its loss of a recent libel lawsuit against Offshore Business News & Research Inc., which publishes Offshore Alert.
The grounds for the appeal were not known at press time.
Grenada Prime Minister clears FIBG of illegal acts
The massive financial scam being committed in Grenada by Canadian and American crooks has reached new levels of farce after the island's government announced that it had investigated - and cleared - the First International Bank of Grenada of any wrongdoing.
Grenadian Prime Minister Keith Mitchell gave the bank a clean bill of health at a press conference held on July 23 and attended by local journalists.
Keith King in legal setback in the Isle of Man
Keith King, the head of the Nevis-based First Nevisian corporate services/stockbroking group, has suffered a setback in his latest court battle in the Isle of Man with a former client, Virginia Anne Callow.
King's inactive Isle of Man company, City & International Securities, is suing Callow for US$39,717 and £13,409 (approx. US$21,695), claiming the amounts are debit balances on personal trading accounts.
Former manager of Cayman fund disciplined by SEC
US-based businessman Keith E. Walsh has reached a settlement with the SEC for illegalities in the way he ran a now defunct Cayman-registered company called CS First Boston Offshore Cash Reserve Fund.
Walsh, 41, who lives in Pennsylvania, has agreed to be barred from association with any broker, dealer, investment adviser or investment company, with the right to re-apply after three years.
USA v. Mack Obioha et al: Criminal Indictment
Indictment by USA against Mack Obioha, Roland Bleyer, Tari McNamara, Ann Henderson, a.k.a. Joyce Henderson, and Jay Stevens at the U. S. District Court for the Eastern District of California.
OBNR defeats Harris Organization in libel lawsuit
The Harris Organization financial services group of Panama has lost its libel lawsuit brought against Offshore Business News & Research, which publishes this newsletter, and OBNR's principal, David Marchant.
Judge Michael Moore, sitting in the United States District Court for the Southern District of Florida, issued a strong ruling in favour of OBNR and Marchant on August 10, 1999.
Marc M. Harris et Cie SA et al v. David Marchant et al: Final Judgment, Findings of Fact and Conclusions of Law
Final Judgment, Findings of Fact and Conclusions of Law 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.
State of Florida v. John McGarrity et al: Amended Information (1999)
Amended Information in State of Florida v. John McGarrity James T. Staples, Joseph Monaco, James Deas, Francis Clarkson, John McGarrity, John Manion, Jeff Mann, Rich Mann, David Trotter, Steven Schaefer, Jeno Koch, and Julie Gilvary at the Circuit Court of the Eighteenth Judicial Circuit, in and for Seminole County, Florida.
TCI Police asked to investigate alleged stock fraud against Asian investors
Police in the Turks & Caicos Islands are to be asked to investigate a company that was allegedly used to defraud mainly Asian investors, according to a recent report in the South China Morning Post in Hong Kong."Peddlers of worthless shares in the Grand Financial Fund, Equity Mutual Trust and Mercantile Securities now appear to be working from the Turks and Caicos Islands," stated the newspaper in an article published on July 12, 1999.
Crown Meridian, Sattva Investment Bank and Offshore Investment Services join FIBG scam
Grenada-registered Crown Meridian Bank has followed in the footsteps of its sister bank, First International Bank of Grenada, by promising depositors annual interest rates of 200 per cent and falsely claiming deposits are insured by the sham insurer IDIC, we can disclose.Crown Meridian is run by the same people who control FIBG and was licensed by Grenada's regulators on February 1, 1999 - three days after Offshore Alert exposed FIBG as a scam.
Libel trial judge asks: ‘Where is Marc Harris?’
The libel trial involving The Harris Organization financial services group of Panama and Offshore Business News & Research ended on July 30 with Judge Michael Moore asking: "Where is Marc Harris?"
Harris was nowhere to be seen during six days of testimony even though he was the main subject matter of the March 31, 1998 Offshore Alert article that was being complained about.
EBI Securities Corporation, Inc. v. Rene Michael Hamouth et al: Complaint
Complaint 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.
Switzerland: Fritz Allemann
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Switzerland into Fritz Allemann for allegedly perpetrating an advance-fee fraud involving International Bancorp for Investment and Credit, Inc.
Theodore P. Netzky et al v. David J. Aubel et al: Amended Judgment
Amended Judgment in Theodore P. Netzky, Lester J. Rosenberg, James Whitney, Mary Claire Frye, Stuart Isen, Ronald N. Weiser not individually but as Trustee of the Ronald Weiser Trust, and RAM Partners v. Computer Access International, Inc., David J. Aubel, Christina Perry and Roland Perry at the U. S. District Court for the Southern District of Florida.
‘Gov’t mismanagement contributed to First Cayman Bank fiasco’, writes creditor
Letter to the Editor of the Caymanian Compass newspaper regarding First Cayman Bank.
Decision expected soon in Ann Nealon/Cayman Stock Exchange dispute
A decision in the bitter legal dispute between the Cayman Islands Stock Exchange and its former CEO, Ann Nealon, is expected soon after the case was heard over June 28-29 before Chief Justice Anthony Smellie at the Grand Court of the Cayman Islands.
The ruling is being eagerly awaited in both Cayman and overseas, where the decision by the government-funded CSX to bring a civil lawsuit against Nealon has raised many eyebrows.
SEC files administrative action against Gary Pierce and CSI Ag
The United States Securities and Exchange Commission has commenced cease-and-desist proceedings against Turks & Caicos Islands-registered CSI Ag and its principal, Gary J. Pierce, of Studio City, California.
From July, 1997 to February, 1999, Pierce and CSI solicited investments in a $500 million unregistered bond offering for the Government of Free Vietnam, which is a political association in Garden Grove, California, via its Internet web-site and its newspaper, according to the SEC in its administrative complaint.
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Eurofed’s name taken off Canadian regulator’s warning list
Antigua-licensed Eurofed Bank has been taken off a Warning Circular issued on April 15, 1999 by the Canadian Office of the Superintendent of Financial Institutions.
The list contains the names of 227 entities against which the OFSI has had "some form of inquiry or complaint" and which may be operating illegally in Canada.
Q&A with Grenada reguator Michael Creft over First International Bank of Grenada
Questions and Answers with Grenada's Registrar of Offshore Services, Michael Creft, regarding the First International Bank of Grenada.
Harris Organization/OffshoreAlert trial set to start on July 6, 1999
The civil libel trial between Offshore Business News & Research, Inc., which publishes this newsletter, and The Harris Organization financial services group of Panama will start at the United States District Court for the District of Southern Florida (in Miami) on July 6.
After two postponements by the court because of scheduling problems, a definite date has now been set for the trial, which is scheduled to last for about one week.
First lawsuit filed against First International Bank of Grenada
The First International Bank of Grenada appears to be on the verge of collapse.
A client filed a lawsuit against the bank this month alleging non-payment of a $300,000 one-month Certificate of Deposit and we understand that several other depositors are preparing similar lawsuits.
Liquidators of Telecheck group prepare to pay final dividend
The liquidators of Televest Ltd. and Telecheck Holdings Ltd., which went bust on December 15, 1993, have announced they will soon pay a final dividend to creditors.
Although accounting firm Kempe and Whittle have no amount for the dividend, creditors have been told in the past to expect a total payment of between 21 and 37 cents on the dollars.
Worldwide International Bank goes into receivership
Antigua-licensed Worldwide International Bank has officially been placed into receivership after the failure of a last-ditch bid to stop the process by the bank's owner, Antiguan Joan De Nully.
USA v. Philip Abramo, et al: Criminal Indictment
Criminal Indictment in USA v. Philip Abramo, a.k.a. Lou Metzer; Philip Gurian, a.k.a. Martin Clainey; Glen Vittor, Barry Glesser, and Louis Consalvo at the U. S. District Court for the Middle District of Florida.
Letter from Antigua regulators to Worldwide International Bank
Letter from Antigua regulators to Worldwide International Bank
Harris Organization-OBNR trial put back by court
The libel trial involving The Harris Organization financial services group of Panama and Offshore Business News & Research, Inc., which publishes this newsletter, has been put back to an unnamed date by the United States District Court for the Southern District of Florida.
Ann Nealon resigns from Cayman Stock Exchange
Ann Nealon has resigned after two years as CEO of the Cayman Islands Stock Exchange. We understand that Nealon, who is an attorney by profession, has been offered a job with the Cayman law firm of W. S. Walker & Co.
World Stock Exchange closed down by Cayman police
A Cayman-based Internet stock exchange was closed down last year by the local police and government because of concerns that it might be confused with the Cayman Islands Stock Exchange. Details about the action appeared in a complaint prepared by the Alberta Securities Commission against Canadians Kim Seto and Orest Rusnak.
First International Bank of Grenada launches Pyramid scheme
The First International Bank of Grenada and the sham insurer known as IDIC have launched an international pyramid scheme as the latest phase of their plan to part investors from their money. There is also concern that FIBG may have become involved in stock manipulation involving a Florida-registered penny stock firm that trades on the NASDAQ over-the-counter market.
Offshore banker William Cooper arrested in Antigua
Antigua continued its battle to clean up the image of its offshore financial services sector this month with the arrest of a notorious banker and an attempt to force another suspect bank into receivership. American-born William W. Cooper, aged 59, was arrested in Antigua on May 18 after a warrant was issued against him in the United States, where he has been criminally indicted for alleged money laundering and fraud.
Bermuda Fire & Marine Insurance trial hears accusations of fraud
The Bermuda Fire & Marine Insurance trial began, as scheduled, on May 4 and most of the rest of the month was spent hearing allegations of lies, deceit and fraud against people who were at one time considered to be among the crème de la crème of the local business community.
Star Capital Fund investor criticizes Cayman Islands Monetary Authority
A Canadian investor in the failed Star Capital Fund has criticized regulators in the Cayman Islands over their lack of interest in investigating apparent illegalities in the operation and liquidation of the mutual fund.
Alan Hammaker, who lost US$20,000 in the fund, said his experience as a foreign investor in a Cayman mutual fund has left him disillusioned not only with the island but with the offshore world in general.
Attorneys arrive for Bermuda Fire & Marine Insurance trial
Some of the UK's top attorneys began arriving in Bermuda this month to prepare for the island's biggest ever civil trial, involving the alleged asset-stripping of the failed Bermuda Fire & Marine Insurance Company by some of the island's most prominent businessmen and companies.
The trial, which is due to start on May 4, is expected to last four months and there have been no indications in the run-up to the off that the case will be settled.
Marc Harris withdrawn as witness as libel trial draws near
The Harris Organization's libel complaint against Offshore Business News & Research, Inc, which publishes this newsletter, and the company's principal, David Marchant, is due to start on May 24 at the United States District Court for the Southern District of Florida (in Miami).
We were also notified this month that the group's founder, chairman and sole owner of its common stock, Marc Harris, has been withdrawn from The Harris Organization's witness list.
Fraudsters try to sell Caribbean Bank of Commerce
The Russian criminals behind the Caribbean Bank of Commerce, which Antiguan regulators have been trying to close down for over a year, have put the bank up for sale.
A representative of CBC this month sent out mass e-mails offering four different banks for sale, including the Caribbean Bank of Commerce.
Second Mezzanine Capital affiliate adjudged ‘stock of the month’
For the second month out of four, a company closely associated with Bermuda Stock Exchange-listed Mezzanine Capital Ltd. - which has been implicated in the manipulation of penny stocks - has been adjudged 'Stock of the Month' by www.hotstocknews.com, which promotes stocks over the Internet.
NetVoice Technologies Inc. received the 'honor' in April, following on from a similar award in February to XtraNet Systems. Both companies gave the stock promotion firm shares in return for the plugs.