Investors in the Turks and Caicos Islands and other Caribbean countries who were taken in by the failed David Smith-run Olint ponzi scheme and lost in some cases millions and their lifetime savings have been dealt a severe blow by the US Federal governement.
That’s because the federal government has ruled that those persons in the United States who were swindled are to be priority one.
Smith pleaded guilty to four counts of wire fraud, one count of conspiracy to commit money laundering, and 18 counts of money laundering on March 20, 2011, as part of a plea agreement in the Federal District Court of Orlando, Florida. Sentencing is set for June 16, 2011.
Known widely in Jamaica as unregistered financial organisations (UFOs), the investment arrangement, eventually discovered to be a Ponzi scheme, duped even religious organisations, two of the most well-known being LEWFAM and Faith International Investment.
Thriving alternative investment schemes offering upwards of 10 percent interest per month suddenly crashed in mid-2008, following local and international action that resulted in the freezing of investment funds estimated to run into billions of dollars.
The biggest trader to be hit was Olint TCI operated by Smith. But the fall of that outfit dragged down many feeder agents who had been collecting money from “members” and investing it with Olint. Smith and his wife Tracy were arrested by detectives from the Financial Crimes Unit, who slapped a slew of charges against them, including theft and money laundering. He later pleaded guilty to four of the charges in a plea deal agreement, which saw his wife walking free, but he was sentenced to six and a half years in jail.
However, after spending about two months at her Majesty’s Prison in Grand Turk, Smith was taken by US Marshalls to the United States where he also pleaded guilty to a litany of charges, including wire fraud. Federal government announced that it was extending the deadline for Olint investors to submit claims for recovery of their funds, portions of which are frozen.
A new deadline has not yet been indicated by the US Attorney’s Office handling the matter but victim-witness specialist Elizabeth Medina, who is receiving claims, said investigators needed more time to review the information and for her office to properly advise the court regarding victims’ status.
