Scott Lines

Bermuda-based investment firm Lines Overseas Management Ltd. has denied allegations of securities fraud made against it by the SEC but is still refusing to co-operate with the regulator's investigations. LOM has reiterated its stance that its affairs are governed by the laws of Bermuda, the Bahamas and the Cayman Islands, where it has offices, and not the USA and Canada, where it makes much of its revenue.

Bermuda-based investment firm Lines Overseas Management Ltd. and its principal officers, Scott and Brian Lines, are being investigated for alleged securities fraud in the United States. It has been alleged that the Lines brothers and LOM customers profited by more than $6.4 million from fraud and market manipulation and that the firm caused false statements to be filed with the SEC and altered its internal records to impede an investigation.

Shares of the parent company of Bermuda-based stockbroker Lines Overseas Management were listed for the first time on the Bermuda Stock Exchange on July 24.A statement that the shares had been approved for listing was made on July 20 without any prior public announcement that an application had been submitted.

Information Memorandum for LOM (Holdings) Limited, filed with the Bermuda Stock Exchange.

The saying 'There's one born every minute' was never more evident than during a recent interview OffshoreAlert conducted with an Arizona-based creditor of Gilbert Ziegler, the chairman of the fraudulently-run First International Bank of Grenada; The depths to which The Oxford Club's parent, Baltimore-based Agora Inc., will stoop to attract new business seemingly knows no bounds; In the book the Sovereign Individual, which is co-authored by Lines Overseas Management shareholders Lord William Rees-Mogg and James Dale Davidson, there is a paragraph on Page 188 that seems to advocate an illegal act when advising readers on asset protection; Although we published a list of shareholders for Bermuda-based financial services firm Lines Overseas Management last month, the identities of many of the beneficial shareholders was hidden through companies; We reported last month on an alleged fraud being committed by Threshold Insurance Services, which is an apparently bogus insurer being operated by The Harris Organization of Panama and being investigated by banking and insurance regulators in Florida. We learned this month that official records in Panama show that the company has now been dissolved; and Accounting firm Deloitte & Touche, which is liquidating First Cayman Bank, is still forecasting a pay out of 45 to 55 cents on the dollar.

The Cayman Islands Monetary Authority has been asked to investigate a failed mutual fund that was run and promoted by the staff of Lines Overseas Management (Cayman) and administered by Alexandria Bancorp.A Canadian investor has made a written request for an inquiry on the grounds that a number of laws may have been broken during the operation and current liquidation of Star Capital Fund.

Links between Lines Overseas Management and the Agora Group.

The Sagacity Futures Fund is being liquidated 14 months after launch following heavy losses incurred by the fall of the US dollar to record lows against the Japanese Yen during March.Sagacity, which was managed by former Bank of Bermuda chief economist Allan Marshall and sold by Lines Overseas Management, was a high risk fund that took leveraged positions in financial futures and related options traded on the world's major futures exchanges.