View Full Version : More worries for OLINT ...Fraud?!?!

03-10-2006, 01:02 PM
More worries for OLINT
Gleaner published: Friday | March 10, 2006

Dennise Williams, Staff Reporter

ANOTHER CHAPTER has unfolded in the case of David Smith's OLINT Corporation Limited, the firm that has been giving high net worth Jamaicans returns that average 10 per cent per month on sums invested.

The Supreme Court on Wednesday turned down David Smith's application for an injunction against the Financial Services Commission (FSC) and his request for the return of documents seized by the FSC on Monday. And on the heels of that raid, the Financial Gleaner understands that Mr. Smith's offices were raided once again on Wednesday by the police working with the FSC.

But in addition to problems faced in Jamaica, the Financial Gleaner investigations revealed that the Republic of Panama's Superintendent of Banks has put the Olint's Panamanian investment partner, Overseas Locket International Corporation (Olint), on its watch list.


It is understood that funds collected in United States currency in Jamaica are ultimately transferred to a Panamanian bank.

Early reports said that US$20 million to US$50 million had been deposited with Mr. Smith, but other sources now suggest that Jamaicans could have invested as much as US$150 million through OLINT.

And perhaps it is the large sums that are transferred to Panama that got the attention of the regulators.

The notice posted on the Panamanian website states, "The superintendency of banks hereby states and advises the public that the individuals or companies included in the following list do not have a banking license issued by this superintendency, allowing them to carry out banking operations within or from Panama."

In general, a financial institution is placed on a watch list when it has known weaknesses that could affect supervisory assessments of the quality of its management or its overall safety and soundness. Overseas Locket International Corporation is number 48 on the Panamanian list.


Financial Gleaner sources say some of OLINT's estimated 700 high net worth customers are now becoming wary of the situation since the FSC raids and have begun to withdraw their money. Others have expressed their loyalty, stating that there was another scare in January following a warning from the Bank of Jamaica about such operations which caused some to flee the fund, but they were drawn back by the high returns.

Speaking on the condition of anonymity, one former customer who cashed out on Wednesday said, "Over the weekend, Mr. Smith sent out letters to us stating that Olint was really an investment club. However, when I took in my money, I was led to believe that it was an investment house. This sudden change made me nervous."

This same former customer admits to never quite understanding how the returns were actually earned by Olint.

"You know, my friend told me about this place they don't advertise. And it was always strange to me how such steady returns of over 10 per cent per month were being made. I even asked for a financial statement from the company and couldn't get one. And so I became increasingly uncomfortable because the returns are too good to be real. And so while I did make money, I decided to get out.

"But a lot of my friends are still in this investment house because they have become addicted to the returns."

03-10-2006, 01:06 PM
hey,hey hey!!!
Now these so-called investors are as dumb as they get.
How do they expect to be paid 10% per month,on a ligal investment??
I have been watching this for sometime. i am surprized that the gleaner publish this now since they seem to ignore it for all this time. I suppose it can't be kept under the covers any longer.

03-10-2006, 01:14 PM
This is where the pressure on the local curency has been coming from.They milk the country of it's foreign exchange chasing pie in the sky investment.
Let's see how many will get back their investment in this Ponzi scheme
i thought persons of high net worth wouuld have known about this very common form of taking their money.
Well thay say the fool and his money will surely part,and it look as true as ever.

03-10-2006, 02:32 PM
me tink seh mi hear dat is currency trading him was doing?

03-10-2006, 02:49 PM
me tink seh mi hear dat is currency trading him was doing?

[/ QUOTE ]
I've been made to understand that some of the 'currency' may have been cocaine...and the rest is supposed to be in numbered accounts so far from Panama that only governments under the Terrorism act will be able to acces it.

03-10-2006, 03:04 PM
I've been made to understand that some of the 'currency' may have been cocaine

[/ QUOTE ]

This I have not heard. However, I have heard that some of his high net worth *clients* might have had questionable sources of income...

03-10-2006, 03:11 PM
I've been made to understand that some of the 'currency' may have been cocaine

[/ QUOTE ]

This I have not heard. However, I have heard that some of his high net worth *clients* might have had questionable sources of income...

[/ QUOTE ]
In other words, the poor can make money but will not be able to keep it,is the addage involved here!1
people of questionable means,are poor at heart. since the did not learn the ropes in gaining it. they will lack the skill to keep it.
easy come easy go!! /forums/images/graemlins/smile.gif

03-12-2006, 11:59 AM
OLINT members back David Smith
published: Sunday | March 12, 2006

Brian Wynter, executive director of the FSC.

OLINT CORP received the backing of its members on Friday, following raids carried out earlier by the Financial Services Commission (FSC) on OLINT, on the suspicion that it had breached the Securities Act.

At a meeting of 10 club members, Wayne Smith, brother of David Smith, said members had maintained their support for OLINT Corp and its principal David Smith, and rejected the allegations made in the media.

OLINT Corp, a private members' club, makes high returns through the international foreign exchange market that is available via the Internet, he said in a statement.

Smith noted "the international foreign currency market is a US$1.5 trillion per day business which is larger than the stock and bond markets combined. Trading on the currencies market used to be the privilege of giant banks and wealthy financiers. Over the past few years however, currency trading has fallen into the reach of the small-time investor."


OLINT Corporation maintains that through its investment club, "the ordinary man now realises that there are now greater earning possibilities and does not have to live with the five per cent per annum return, but can now realise larger returns and accomplish dreams and goals * buying a house, educating children, helping relatives, and financing a business." According to Smith "the club membership has attracted a wide cross section of individuals and organisations, including the church community which has been in constant prayer on David's behalf."

The proprietor's brother told The Gleaner that "members in attendance stated that neither the principal nor any other employee has ever discussed trading in bonds, stocks, or has given any other investment advice. Members have never had a problem withdrawing part or all of their funds."

According to the statement, "David Smith has proven himself a person of high integrity and despite the numerous attempts to discredit him, many club members have remained steadfastly loyal to the club." He said that "many of the financial institutions are worried that their business has been adversely affected by their client's new expectations of real returns as demonstrated by OLINT."

The investment club has questioned the motive behind what they said was an attack against OLINT and David Smith.

Tuff Gong
03-17-2006, 12:53 AM
me tink seh mi hear dat is currency trading him was doing?

[/ QUOTE ]
I've been made to understand that some of the 'currency' may have been cocaine...and the rest is supposed to be in numbered accounts so far from Panama that only governments under the Terrorism act will be able to acces it.

[/ QUOTE ]

Who make you to overstand that? I think he backed the wrong horse that is all and Dr. Clueless sent his goon squad after him.
Shades of the 70s.


David Smith on the business of currencies trading

l Edwards
Friday, March 17, 2006

This is the tale of how an enterprising young man turned the financial sector on its head and will force the regulatory body to be clearer in its definition of what constitutes securities and investment advice.

Earlier this month David Smith, a reputable trader concentrating solely on the international FX market had both his home and business premises raided by the Financial Investigations Division (FID) for supposed breaches of the Securities Act. FID agents seized documents records and essential computer equipment.

In response, Olint Corp Limited with David Smith as lead principal has sued the Financial Services Commission for J$300-million claiming wrongful intrusion.

While Smith has not been arrested or charged he is under investigation to determine whether he breached section 7(1) (a) and 8 (1) (a) of the Securities Act.

Section 7(1) (a) prohibits persons from dealing in securities without a licence issued by the FSC while Section 8 (1) (a) rerstricts involvement in the business of providing investment advice without an investment advisor's licence.

It is yet to be determined whether Smith offered investment adviser and traded securities without a licence.
Who is David Smith?

David Smith is the son of Edith and Gilbert Smith. His mother has served as a physics teacher at St Andrews school for over forty years and at one time was the head of the science department. His father now deceased was at one time the Vice Principal of Wolmers Boys School. He taught at the school for over 40 years.

David has a brother who currently works at VMBS and a sister. He is married with two children and attends Church on the Rock.

A licensed representative at JMMB he specialised in international FX trading where his career was guided by Julian Mair and Keith Duncan. In his ten year carrer he spent seven at JMMB honing his craft.

He branched out on his own forming a club where a few friends would trade foreign curriencies. The word got around and the club grew making handsome returns of as much as 15 per cent a month for members.

Smith decided to apply his skills and helped people from alll walks of life, the testimonials are many and members are happy with both their returns and the way Smith has conducted himself.
At this point in time the club is not taking anymore members until this matter is settled . David Smith has made it clear that he has never solicited people and that he traded foreign currencies not securities for club members. Also at no time did he offer investment advice. He conducted trades on a currency-trading platform with the daily trading activity running to US$1.9- trillion.
What exactly is foreign currency trading?

According to the web site fxadvantage.com, "foreign exchange" is the simultaneous buying of one currency and selling of another Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/ Japanese Yen (USD/JPY)."

The foreign exchange market is the largest financial market in the world, with a daily average turnover of well over US$1trillion---30 times larger than the combined volume of all U.S. equity markets.

About 5 per cent of daily turnover are from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95 per cent are trading for profit (as Smith does) or speculation. Trading can be done anywhere and is not centralised on an exchange, as stocks and futures markets are.

For the purposes of this article the Caribbean Business Report went on to a trading platform site located on US finance house Wachovia's which allows one to use dummy sums to conduct virtual foreign currency trading.
Speaking exclusively with Caribbean Business Report , Smith said:

"Last Friday an article appeared in The Financial Gleaner that gave the impression that Overseas Locket Corporation (OLC) is not legitimate. The articles of incorporation of OLC with the registry in Panama as well as the incorporation and registration documents of Locket investment fund have always been available in the offices for all club members to view and carry our due diligence inquiries if required.

"The website of the supervisor of banks in Panama only posted a list of offshore entities registered in Panama. This list was a warning to the public in general that these entities are not licensed as banks in the Republic of Panama. It cast no aspersion on the legitimacy of their activities or registration. OLC has never at any timepurported to be any thing other than a private investment club, trading only on the International Currency Markets.

OLC enjoys the benefit of margin leverage as high as fifty to one. Simply put this means that OLC has available to trade fifty times the amount of funds that it has in its trading accounts.

For example, if the trading Account has US$1,000,000.00 then US$50,000,000.00 is available for OLC to trade on the International Currency Markets. If 1% is gained for the entire month then the actual trading gain is US$500,000.00 which represents 50% of the US$1,000,000.00. OLC has been averaging gains of 10% per month for members, therefore all that is needed to achieve 10% per month is trading gains of 0.2% on the entire leveraged amount available for the entire month. i.e. 50,000,000 x .2% = 100,000.00 and 100,000.00 represents 10% of US$1,000,000.00.

At no point before the invasion of our club house by employees of the FSC and FID were we contacted by any financial regulatory body. In fact our company attorney on more than one occasion has by telephone spoken to representatives at both the Bank of Jamaica and the Financial Services Commission, about our operations. She at these times was consistently informed by the representatives of both these entities that we do not fall under their jurisdiction.

. The International currency market is the only Unregulated financial market worldwide.

. If the FSC believes that Olint Corp Ltd. is trading in securities and giving investment advice in relation to securities then I believe that as the regulatory body that licenses entities that may fall under the Securities Act they have every right to investigate Olint Corp. and I am confident in the positive result of any fairly conducted investigation However I strongly disagree with a hostile or prejudicial approach to investigating matters within its remit by any regulatory agency.

I am not at liberty to discuss at this time my view as to the manner in which the search of Olint Corp Limited's premises was conducted but I am sure that you will carry out your own investigations as there were many witnesses who are not a party to the action which the club has instructed its attorneys to take.

Actions taken by regulatory authorities send signals which can certainly erode confidence in the legitimacy of the activities of the entities which they purport to regulate. This should never be the objective of regulation or a professionally conducted regulatory activity in this sensitive sector. In fact the approach to these matters is usually one of mutual accommodation.

.Neither OLC nor Olint Corp Limited trades or has traded in any form of securites or given any type or form of investment advice to any one FULL STOP.

David Smith on the business of currencies trading (http://www.jamaicaobserver.com/magazines/Business/html/20060316T220000-0500_100771_OBS_DAVID_SMITH_ON_THE_BUSINESS_OF_CUR RENCIES_TRADING_.asp)

Tuff Gong
09-29-2006, 09:57 AM
<font color="red">The answer to the USA Millions of Dollars Question</font>

Disaster looming
Lee Chin says foreign currency trading schemes will end in ruin
Dennise Williams, Staff reporter
Friday, September 29, 2006

Billionaire and National Commercial Bank (NCB) chairman Michael Lee Chin has predicted that foreign currency trading schemes, which have been attracting Jamaicans eager for big returns on short-term investments, cannot be sustained and will end in ruin.

"These foreign exchange trading investment schemes will end in disaster. Period. I don't know how much plainer I can be," said Lee Chin, who also heads AIC, a Canadian mutual fund.

Lee Chin was speaking at an AIC seminar on Wednesday at the Hilton Kingston Hotel along with senior executives of his NCB Capital Markets who also warned against investing in foreign exchange trading schemes that offer at least 10 per cent return on investments.

"If I take a dollar and double it 20 times, which is less than a 10 per cent return for the year, at the end of the 20th time I will only have $1,048,000," said Lee Chin. "This proves that 10 per cent per month, which is 120 per cent per annum,
is unsustainable."

Lee Chin said that Warren Buffet, whom he described as "the world's greatest investor", earned only 20 per cent return last year.

The billionaire Jamaican, who made his fortune in Canada, also warned Jamaicans against impatience in their approach
to investment.

"There are two emotions that drive investors - fear and greed," said Lee Chin. "Be careful of your greed. We need to control our emotions. There are two laws of investing, according to Warren Buffet: law number one - don't lose your principal; law number two - don't forget law number one."

He advised that preservation of capital was the number one goal and said, "If you lose 50 per cent of your principal, you have to earn 100 per cent to get it back."

An exasperated Christopher Williams, managing director of NCB Capital Markets, agreed, saying that foreign exchange trading schemes should not be given succour.

"When we have to compete with other schemes operating without transparency we can't condone it," said Williams. "We should not encourage these entities."

The NCB Capital Markets camp has been the first to speak out publicly against foreign exchange trading schemes that have been attracting investors in droves.

The two more popular choices are Olint, based in the Turks and Caicos Islands, and Cash Plus based in New Kingston. At least one of the foreign exchange trading investment clubs is reported to have over US$400 million under management, and that money, experts say, has come from clients of the traditional financial services sector who want higher returns than the market will give.

"What the brokers are paying is foolishness," said one investor who asked not to be named. "Why should I accept 5 per cent per annum that will be taxed when I can get 10 per cent per month on my US dollars?"

But Lee Chin described that position as "a mania developing". In fact, he said, "I don't know of anyone on the Forbes magazine list of the world's 100 wealthiest persons that became wealthy because of foreign exchange trading. And it is highly improbable that the first would occur in Jamaica."

Last week, other players in the financial services sector either bemoaned the loss of clients to the schemes or appeared somewhat nonchalant to the trend.
"I can count on one hand the number of clients I have lost to these schemes," said Chris Berry, chairman of Mayberry Investments Limited.

Sandra Shirley, president of First Global Financial Services, said, "For us, it is business as usual. Convincing clients to remain with the licensed financial brokers is not our fight. It is the battle for the regulators."

Bryan Wynter, executive director of the Financial Services Commission (FSC), reminded that Olint was still under a cease and desist order from the FSC.

"People do not understand how serious this order is," said Wynter. "It is not something done lightly."

While noting that the FSC does not have a similar order against Cash Plus, Wynter echoed Williams' concern
about transparency.

"How do persons know that the returns are real?" he asked. "Where are the financial statements? Has anyone asked about an income statement that shows how funds are earned? What about a balance sheet to show that there are assets supporting the business, has anyone asked for that?"

However, Wynter admitted that because these schemes are not licensed by the FSC, "we cannot protect investors from themselves".

http://www.jamaicaobserver.com/magazines...TER_LOOMING.asp (http://www.jamaicaobserver.com/magazines/Business/html/20060928T200000-0500_113408_OBS_DISASTER_LOOMING.asp)

09-29-2006, 10:07 AM
Does anyone know what this cease and desist order means to Olint? Can they still take money from Jamaican investors...since they have moved to the jurisdiction of the turks and caicos?

Tuff Gong
09-29-2006, 10:37 AM
Does anyone know what this cease and desist order means to Olint? Can they still take money from Jamaican investors...since they have moved to the jurisdiction of the turks and caicos?

[/ QUOTE ]

That what they are doing and doing it successfully that is why Low Chin and Co. is worried. Now we know who dropped the dime..i.e. USA Dime.

Tuff Gong
01-07-2007, 02:34 PM
David Smith is CBR's Business Personality of 2006

Al Edwards
Friday, January 05, 2007

In March of last year I received a call to meet a good friend at New Kingston Shopping Mall as quickly as I could. This request piqued my interest because he did not specify a purpose or give any indication as to why we were meeting in the centre of town. To be honest, I was a little unnerved and I hoped that no misfortune had befallen my friend. You see, he had turned a corner in his life and all seemed to be well with him.

I got to the shop where we were to rendezvous and found police in paramilitary get-up with FID written across their backs. They were earnestly examining the contents of one of those shopping units on the upper level, avidly searching for something at the time I knew not what.

My friend, always affable, greeted me before declaring, "They are trying to make him a criminal and all he is doing is making people the best returns in Jamaica. What he is doing is not illegal!"

I watched the cops going about their work unsure as to what my friend was going on about. Pretty soon the scene attracted a crowd of people, many of whom I recognised. Many told me that they were anxious to know whether their money was safe. The scene looked like a run on a bank and reminded me of the Polly Peck scandal in London.

It transpired that these people were members of an investment club headed by "a financial genius that could make returns of no less than 10 per cent a month.
"That's impossible in Jamaica unless some sort of nefarious activity is involved. Are you sure this is not a pyramid scheme? What have you got yourself into this time? I keep telling you there is no quick route to wealth creation, a man has to build a life rather like building an innings at the crease," I said not wanting to sound too dismissive.

"Meet David, he's a FX trader and heads a company called OLINT. These FID guys are saying it has come to their attention that he has breached the Securities Act."
Just then a languid walking guy in his 30s, twinkling eyes and with an easy-going way about him doffing a Ralph Lauren baseball cap was introduced to me.

"Hi, I'm David Smith," he said and proffered a hand. He then sought to explain what was happening and said he feared he might well be arrested and his business destroyed.
I had heard of George Sorros and Mike Lee Chin's mentor Warren Buffett making it big in FX trading but this fella seemed not to belong in that exalted company. He looked like an around-the-way guy. Still, I felt a pang of sympathy for him, as he had to stand and watch the FID officers go through his paperwork and dismantle his computer.

The following day, I didn't give the incident too much thought until my friend rang me and said that David was suing the Financial Services Commission (CFSC) for J$300 million for wrongful intrusion. It was from that moment that OLINT became the financial story of the year.

Players in the sector and 'financial analysts' said throughout last year that it was impossible to make sustainable returns of 10 per cent a month and that it would all end in tears by May.
The demographic nature of this investment club is an eclectic mix yet a microcosm of Jamaican society. Uptowners with dollars to spare and ordinary church- going folk living on a prayer. All in all, people with an appetite for risk and who have an unwavering faith in this young man.
FX trading is not illegal; corporations and financial institutions have made impressive returns going that route. David Smith is by all accounts a good trader having honed his skills at JMMB as a currency trader.

While the Jamaican financial sector promises returns of between 3 to 5 per cent a year, he has for the better part of 2006 delivered returns in excess of 10 per cent a month in a macro economic environment which is seeing declining interest rates, falling inflation and greater consolidation of the financial sector.

He has single-handedly succeeded in getting Jamaican investors to demand greater returns and sated their appetite for risk. If you had invested US$10,000 at the beginning of 2006 you would have made back your principal by January 2007. Now that's pretty enticing and lends a new definition to wealth creation.

Both Mike Lee Chin and Bill Clarke seem to be on the same page - this time - in dismissing Smith. They have said that investors will get burnt. But if you are offering me 4 per cent a year and this guy is making my friends 10 per cent a month, each and every month, what would you do? David Smith now has close to US$400 million under management despite the FSC putting the block on Jamaicans investing with OLINT at least until March of this year. David Smith is undoubtedly the success story of 2006. Never mind that his operations may not be sustainable - it certainly was in 2006.

Jamaican investment instruments tend to be very unsophisticated- vanilla-flavoured if you like. The days of making it on repos are gone and Smith has heralded a new form of making returns. FX trading did not feature in the lexicon of Jamaican investors. It does now. A new dynamic has been added to the financial sector which allows the small, unsophisticated investor - once aware of the risks - to make handsome returns. There is a sense of well-being when ordinary folk tell of putting down on a house, sending their children to college or buying a car from the proceeds of their investments with OLINT. The ability to enhance lives when it was not possible before can make a life less ordinary. No wonder all those church folk who placed their cash with Smith love him. David Smith does not change water into wine but like Jesus who incurred the animosity, and suspicion of the Pharisees and Sadducees he has been scorned by the financial sector's traditionalists while helping to create miracles of good fortune for the small investor and big investor alike underscoring that is an unassuming Jamaican young man tucked away in Turks &amp; Caicos who is literally good at his trade. His name is David Smith and in 2006 he was an iconoclast who had his place in the sun.

[url]http://www.jamaicaobserver.com/magazines...ity_of_____.asp (http://www.jamaicaobserver.com/magazines/business/html/20070105t000000-0500_117479_obs_david_smith_is_cbr_s_business_pers onality_of_____.asp)[/ulr]

Tuff Gong
01-14-2007, 11:15 AM
Green Card politicians
Wignall's World
Mark Wignall
Sunday, January 14, 2007

<span style="color: red">Wynter and the FSC caught off base</span>

In response to my article - 'David Smith and OLINT alive and well' - in Wignall's World last week, I received a few e-mail transmittals from persons who claim they are investors in Smith's OLINT. Some have divulged to me details of their earnings and have reiterated what seems to be a common position among those who have invested in Smith's Foreign Exchange Trading club - satisfaction with their investment experience and an intention to continue doing so.

I have absolutely no idea of the number of investors in OLINT's FX trading club and would hardly call six e-mail responses to my article a deluge. There was one transmittal which warned me to not to go overboard and recommend OLINT because the company was not regulated or licensed.

In replying to the online reader I pointed out to him that investors have a duty to educate themselves in the direction to which they would be placing their hard earned funds, whether those funds are buying Microsoft stock or moving to Scotia bank, NCB or OLINT.

If we roll back the clock, it will be remembered that in March 2006 armed FID officers entered OLINT's New Kingston offices, search warrant in hand and began an operation which, when it hit the media, would result in a run on the club. As I understand it, OLINT lost 70 per cent of the funds it held, and unlike what would have taken place in say, a commercial bank, every investor who wanted back his or her money was accommodated.

In an article written by Dennise Williams in the Caribbean Business Report of January 5, Brian Wynter, executive director of the Financial Services Commission and the man who would have initiated the raid by the FID on OLINT stated, "Fundamentally, the Securities Act says that you must be licensed if you are taking money. You must be fit and proper, that is you must have nothing in your personal background that is dangerous. .I am not suggesting that Smith and his associates are not fit and proper. I just don't know if they are. We don't have that information."

In a small country like Jamaica, everyone, it seems, knows everyone else. In the financial sector, the scrutiny of those seeking jobs and the comprehensive probes launched on those who want to set up themselves in leadership positions are exhaustive.
Prior to David Smith forming OLINT he had been a licensed representative at Jamaica Money Market Brokers (JMMB), more than an indication that he was deemed fit and proper. Additionally, two senior staffers at OLINT were also licensed reps at JMMB.

But let me refer once again to the January 5 article where Brian Wynter, head of the FSC, was quoted as saying, "As long as OLINT remains unlicensed it is not a question of if it will fail but when it will fail. If you are a legitimate company, you are not likely to fail." If someone like Don Crawford, who headed Century National Bank in the early 1990s, had heard that then, he would have been a happy man.

My understanding is that sometime prior to March 2006, OLINT's lawyer made contact with both the FSC and BOJ and gave them individually an explanation of what OLINT was about. The lawyer sought to determine if regulation was needed based on the specific nature of the investing instrument. What was the outcome? FSC pointed OLINT to BOJ and BOJ told them to go to FSC. No surprise, given our fascination with red tape and humbug.

In the January 5 article, Mr Wynter, head of the FSC, says of Smith, "I am not suggesting that Smith and his associates are not fit and proper. I just don't know if they are. We don't have that information." Fair enough.
But what was the response? At the time when officers from the FID raided Smith's offices, there had been no official correspondence from FSC to OLINT. Yet the Gestapo-like intrusion (with search warrant) was deemed the most appropriate action from those concerned.

After David Smith had been uprooted by the tactics of the local authorities, he relocated to the Turks and Caicos Islands. In the January 5 article Wynter suggests that Smith may not have chosen to become licensed in Jamaica because:
'OLINT is not doing foreign exchange trading only. Perhaps they are engaged in real estate or other risky ventures.

'OLINT is doing foreign exchange trading. Smith is sensationally successful and soon to be on Time magazine.'
Information supplied to me by OLINT is that it does not invest members' funds in real estate as it is not a liquid asset. Based on the fact that OLINT survived the run on its operations following the sudden intervention by the FID in March 2006 and a loss of 70 per cent of its funds, but with all investors who wanted their money being accommodated, Mr Wynter has been handed a proof of sorts that OLINT is very liquid.

Brian Wynter was quoted in the January 5 article as saying, "The regulators of Turks &amp; Caicos, where Smith is supposed to be working from, don't care as long as Turks &amp; Caicos citizens are not involved. It is my understanding that only Jamaican citizens are involved, therefore, as far as I am concerned, he is not in Turks &amp; Caicos even though he is sitting there. Smith is still in Jamaica. What I see is that it is a bad sign that OLINT doesn't even have a physical presence in Jamaica."

I find this statement to be most incredible and not befitting a highly educated and intelligent man. After the action generated by the FSC had brought about the raid by armed men from the FID, which person operating as Smith had been doing would stay in Jamaica?

Mr Wynter must be aware that many of the investors who had responded negatively (but expectedly) to the FID raid by withdrawing their funds, reinvested once Smith had settled the dust and relocated to Turks &amp; Caicos. But where Wynter has failed miserably in gleaning information is in the area of Smith's operations overseas.
What are the facts?

Since moving to Turks &amp; Caicos, Smith has received a licence from the Turks &amp; Caicos FSC and deemed as a fit and proper person to conduct the business he operates. This required him being fingerprinted and investigated by various agencies, including the Jamaican police.
OLINT has Indemnity Insurance as it is one of the criteria for obtaining a licence in Turks &amp; Caicos.

Because of Smith's involvement within a US entity, US regulators had to be provided with his fingerprints as he was investigated to determine if he was a fit and proper person for the specific operation he is involved in.
David Smith is also licensed in Panama. Again, another country has deemed him to be fit and proper, but not his own.

Where Wynter has stated that, "The Securities Act speaks to the issuance of investment contracts and certificates of participation as actions of a securities dealer," the fact is, an OLINT membership contract is of no value to anyone but the club member and is not transferable, therefore it cannot be traded as a financial instrument such as stocks or bonds.

Contrary to what Wynter said about Turks &amp; Caicos citizens not being involved, I have been informed by Smith that the citizens there are VERY involved with Smith and OLINT.
Wynter also blundered horribly when he was quoted in the January 5 article as saying, "Also, nobody is paying taxes. Is it possible that people are building up a large tax liability? Does OLINT pay taxes?"

Smith informs me that at the time OLINT ceased its physical operations in Jamaica, ALL tax liabilities were fully paid. And, of course, I am certain that Mr Brian Wynter, executive director of the FSC, knows that the Turks &amp; Caicos is a tax-free jurisdiction.

When all is said and done, I must reiterate that investors must inform themselves as best as possible when making any moves which involve the placing of funds in any form of investing instrument. What I have seen in OLINT, and the persons who have chosen to add it to their investment portfolio is a very satisfied group of persons who seem genuinely satisfied with the returns received and the quality of the service offered.
In ending, I would like to ask the FSC boss, Mr Brian Wynter, some pertinent questions.

At the time he was being interviewed for the January 5 article, was he unaware of many of the points I have outlined above?
There are matters pending in the courts between himself (the FSC) and OLINT. Did Mr Wynter believe it was the most prudent action on his part to make the comments he did, considering that there is a legal term known as sub judice?

How many complaints has Wynter received from OLINT members over the past three years? What, if any, were the nature of these complaints? I will bet you he has not even received one.
Has Mr Wynter sought to inform himself properly on the subject of FX trading, which is big business internationally? The regulators in Turks &amp; Caicos certainly did before they granted David Smith/OLINT a licence.

http://www.jamaicaobserver.com/columns/h...OLITICIANS_.asp (http://www.jamaicaobserver.com/columns/html/20070113T190000-0500_117840_OBS_GREEN_CARD_POLITICIANS_.asp)

Tuff Gong
01-22-2007, 04:49 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dr.Dudd</div><div class="ubbcode-body">hey,hey hey!!!
Now these so-called investors are as dumb as they get.
How do they expect to be paid 10% per month,on a ligal investment??
I have been watching this for sometime. i am surprized that the gleaner publish this now since they seem to ignore it for all this time. I suppose it can't be kept under the covers any longer. </div></div>

<span style="color: #FF0000">Thanks, Bryan Wynter! </span>

Monday, January 22, 2007

Dear Editor,
Jamaicans all across the island can sing praises, as I do, to Bryan Wynter, head of the Financial Services Commission, for doing such a splendid job of disseminating information about the foreign currency trading company, OLINT.

As a matter of fact, if it wasn't for Mr Wynter's staunch and verbal stance on the OLINT affair, many Jamaicans would not even know about the company, let alone trust their investments to David Smith who has become known as a financial genius over the past few months.

I am elated to have heard about OLINT because, just out of curiosity, I too recently started trading with the company. I must admit that I have only good things to say about OLINT as it has always delivered on its end of the bargain for me. My returns have continued to be much higher than those of traditional financial institutions and I could not be happier about that.

My recommendation to Mr Wynter is that if he ever loses his position at the FSC, he is to take up a job as the head of marketing at OLINT, where he can continue the good work he has started. Thanks, Bryan Wynter!

Garfield Gentles

http://www.jamaicaobserver.com/letters/h...AN_WYNTER__.asp (http://www.jamaicaobserver.com/letters/html/20070121T190000-0500_118157_OBS_THANKS__BRYAN_WYNTER__.asp)

Tuff Gong
01-24-2007, 09:01 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dr.Dudd</div><div class="ubbcode-body">This is where the pressure on the local curency has been coming from.They milk the country of it's foreign exchange chasing pie in the sky investment.
Let's see how many will get back their investment in this Ponzi scheme
i thought persons of high net worth wouuld have known about this very common form of taking their money.
Well thay say the fool and his money will surely part,and it look as true as ever. </div></div>

David Smith defends Olint
published: Wednesday | January 24, 2007

Garwin Davis, Gleaner Writer

David Smith, the foreign exchange trader at odds with financial regulators, says he has never guaranteed his clients the consistent returns reported in the press, and that his firm Olint is now a legitimate player in other Caribbean jurisdictions.

"While we do give high returns on investments, we do not guarantee anybody any 10 per cent monthly returns as some reports have been making out," said Smith from his current base in Turks and Caicos.

He also told Wednesday Bus-iness that Olint has been approved to offer financial services in the Turks and Caicos Islands.

"Again for the record, we are licensed here in the Turks and Caicos and open to all kinds of scrutiny - here and in Jamaica," he said.

Strong operation

Added Wayne Smith, his brother and spokesman for Olint, "We got our licence last November following investigations and due diligence by the TCI FSC which included extensive background checks - including with the Jamaican police."

Wayne also said Olint was licensed in Panama. Asked why not Jamaica, he said enquiries had been made but "the Jamaica FSC pointed Olint to the Bank of Jamaica and vice versa."

David Smith insists his operation remains strong despite pressure from the Financial Services Commission (FSC), which raided the company last year.

"Once the FSC decided to go after OLINT, club members were given the opportunity to retrieve their investment and as the record will show, we have not folded," said the forex trader. "As we have long maintained, our operations are legitimate and above board."

But Olint last week refused to disclose the funds it has under management. Speculative reports — and rumours — put funds entrusted to Smith's firm at US$300 million-US$400 million ($20 billion to $27 billion), but the self-styled investment club refused to even signal whether the estimates were close to the mark.

"I don't think we should address the question about the amount of US currency we have at our disposal," said Wayne Smith. "I will not confirm nor deny that."

Olint is not licensed in Jamaica to trade securities, which the FSC maintains its activities amount to — the two are duking it out in court.

The FSC raided Olint's Kingston offices in March 2006 shutting down its local operations, saying it lacked a licence to trade. The Supreme Court will begin hearings in March 2007 on the case.

The FSC insists that once a company is doing business with Jamaicans, it has to be licensed here.

Last week, the regulator urged investors to demand more accountability from operations like Smith's, saying they should insist on access to financial statements to track the performance of the company and the management of their funds.

"Any investor with their money at stake should want to know this," said FSC communications officer Nadine Newsome.

But Smith manintains his clients are satisfied with his performance.

"The fact of the matter is that we are not a Ponzi scheme as some people would like to brand us and there haven’t been any complaints from our club members."

In fact, some of those investors speaking with Wednesday Business have declared themselves highly pleased with Smith's management of their money and have come out in his defense.

Bobby Richardson, a real estate developer in St Ann, says he's recouped the US$70,000 he invested.

"The real pyramid schemes which currently exist in Jamaica have not been given the kind of scrutiny that has been given to Olint, and the question is why?" said another Olint client Steve Seal.

"Olint is the real deal and has in David Smith one of the finest business minds in the world."

Another investor said his returns were big enough to get him out of debt.

"I was in debt up to my head until I was introduced to Olint," said Richard Smith, St Mary resident and owner of Prime Time Promotions. "I was in danger of losing my house, my family, everything I have worked so hard to achieve. I put my money in the hands of a financial genius and a happier man you will never find."

But the FSC, despite the testimonials, urged investors to demand financial statements from Olint to monitor the performance of their funds and ensure their monies are safe.

"Any investor with their money at stake should want to know this," said FSC communications officer Nadine Newsome, referring to Olint's financial health.

Finance minister Dr Omar Davies two weeks, January 10, warned at a capital markets conference that there would be no cushion for participants in high-risk schemes if their investments crash.

But said one investor who requested anonymity: “What harm would it do to sit down with David Smith and see what is operation is all about rather than going after him,” asked the club member.

"Why not give him a portion of the NIR and see what kind of returns he comes up with? But even more telling, have we heard one single complaint from an investor?"

[email protected]


Tuff Gong
01-24-2007, 12:58 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dr.Dudd</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">me tink seh mi hear dat is currency trading him was doing? </div></div>
I've been made to understand that some of the 'currency' may have been cocaine...and the rest is supposed to be in numbered accounts so far from Panama that only governments under the Terrorism act will be able to acces it. </div></div>

<span style="color: #000099">Ennis says Olint raid was vulgar abuse of state power
Wednesday, January 24, 2007

<span style="color: #FF0000">Ennis. getting rich quickly was never a crime </span>

Government junior minister and parliamentarian Errol Ennis has blasted the state-run Financial Investigation Division for what he said was its "Gestapo-like invasion" of David Smith's Olint office last year, describing the raid as "a vulgar abuse of state power and highly reflective of the actions of a totalitarian state".

Ennis, a state minister of agriculture, also said in a letter to the Observer that the raid was designed to destroy Smith's high-interest investment club which, he said, should instead be encouraged "as a possible boon to the Jamaican economy, although it has some inflation impact".

Ennis's letter comes a few days after his colleague, Finance Minister Omar Davies, warned people who put money in alternative investment schemes that they were doing so without the protection of the state.

Following is the full text of Ennis' letter.

Dear Editor,
The Gestapo-like invasion of David Smith's office last year as conducted by the Financial Intelligence Arm of the Financial Investigation Division was a vulgar abuse of state power and highly reflective of the actions of a totalitarian state.

It was designed to destroy both the company and the man's reputation in one fell swoop. It was even more frightening, given that to date, no clear statement has emerged as to the exact legal infringement committed by the company. The "Cease and Desist" order served on the company was somewhat akin to brute force when it was clear that the intended effect of the raid, to create a run on the company's office, did not materialise.

Foreign exchange trading is the largest trading platform in the world, many times larger than the stocks and shares markets in the world when combined, larger than all the commodity markets in the world.

There are many large and small companies, larger trading houses and millions of individuals trading 24 hours per day, six days per week in the Forex Market. Tremendous trading expertise, aided by modern technology, are the critical tools to be successful in the market. Huge losses and huge gains are the trademarks of this most volatile market. If the greed factor can be tempered, then steady profits can be generated.

To the individual trader of small investors with Olint Corporation, the Forex Trading Market is their period of financial enlightenment, releasing them from the hegemonic control of the high priests of the financial clergy. The traders are enjoying an economic renaissance, freed from the controls of the financial institutions. The invasion of Olint's offices was, therefore, nothing more than the action of a bunch of economic luddites, scared and uncertain of a bright new world.

It is difficult and near impossible for any rational and sensible investors to accept a rate of return on their investment of 8% - 10% per annum, when they could earn as high as 60% - 120% in the same period. Admittedly, the risks are higher, but fully consistent with fundamental capitalist dictum: "The higher the risk, the higher the profits". Indeed, there has always been a direct and positive relationship between the level of risk and the level of profits.

The protection of the club members as claimed by some, though on the surface laudable, would best be directed at the manifest manipulation of other investment markets that go on daily in the Jamaican economy, to the clear detriment of the small man.

There were expressed fears that the success of Olint/David Smith, would lead to capital flight. Olint's operation initially involves movements out, but it also involves a compensating inflow of foreign exchange. Any detailed analysis of the company's operations would have clearly shown these trends:

1 The club members were prepared to be exposed to a high degree of risk for the first year, in which time they could double their investment;

2 The club members were repatriating their risk capital to the low performing financial sector within a year, so as to average out the level of risk to their investment portfolio;

3 The capital reflows were actually equal to greater than the outflows:

4 The earnings were tantamount to export earnings with no indexed outflow after the repatriation of the initial capital investment;

5 The club members were largely relative small investors with no significant capacity for parking their money in off-shore accounts as is the norm for so many of the traditional large investors; and

6 That Olint's aggregate earnings and foreign exchange reflows had reached over US$3 million weekly and peaked to over US$7 million in the November - December period.
Olint's operations and other traders should be encouraged as a possible boon to the Jamaican economy, although it has some inflation impact. For me, it is a preferred trading activity to the Stock Market, as present conducted in Jamaica. In any case, there is no way to prevent anyone from trading on the Forex Market. There are some who have attempted to use the economic, social and political clout to bash Olint's operations.

There is no crime in using honest means afforded by today's technology, coupled with specialised skills to afford many Jamaicans to get "rich quicker". The alternative is putting their money in the banks and financial institutions and watch others get richer and richer, while their own returns are a measly 8% per annum, below the rate of inflation. In any event, getting rich quickly was never a crime.

The hundreds of small investors were not cowed and intimidated by the FSC's attempts to destroy Olint Corporation and David Smith and, by extension, to destroy their economic prospects. The Forex Trading Market has afforded new, young, non-traditional players to parade their skills and help a lot of small Jamaicans to have their days in the sun and to help them reach their goals.

David Smith, may God continue to shower many blessings on you and Olint. We the children of a lesser god depend on you to help us get rich.

David Smith, don't stop at all...

http://www.jamaicaobserver.com/magazines...STATE_POWER.asp (http://www.jamaicaobserver.com/magazines/Business/html/20070123T220000-0500_118270_OBS_ENNIS_SAYS_OLINT_RAID_WAS_VULGAR_A BUSE_OF_STATE_POWER.asp)