Sources are telling Jamaican media outlets that David Smith’s infamous investment scheme has only $10 million in local cash on hand. In short, it has become clear that David Smith is the Bernie Madoff of Jamaica, with the exception that Smith’s Ponzi Scheme is doing far more damage to the local economy:
Welcome to the Jamaica Herald Online
Quote:
Although banker/client confidentiality prevents the Michael Lee Chin controlled National Commercial Bank of Jamaica (NCBJ) from disclosing details of its relationship with clients, highly placed sources say that the David Smith, led Olint Corporation only has US$3 million in its local accounts and about $7 million in those in the Turks and Caicos Islands.
Speculation has been rife as to how much money is in the company’s local accounts, since NCBJ got the go ahead from the Privy Council to close the renegade foreign exchange dealer’s accounts. Olint reportedly owes cash strapped investors some US$100 million. The company’s inability or unwillingness to pay investors since the end of the year 2007 has been having a negative impact on the construction and real estate, automobile as well as retail sectors.
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Meanwhile, the NFA has yet to issue a ruling in regards to its complaint against I Trade FX:
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Smith was a formal principal at I Trade FX and while the NFA is not investigating Smith himself a ruling by the NFA could help clear up exactly what Smith has been doing with his customer’s funds all these years.
Hopefully, regulators have this case at the top of their “to do” list. It is far too important for them not to.