(Jamaica Gleaner) David Smith, the embattled head of the failed foreign currency trading scheme Olint, has been indicted on 23 charges in the United States.
In the indictment handed down in the US District Court in the Middle District of Florida, Orlando Division, on Wednesday, Smith is charged with four counts of wire fraud, one count of conspiracy to commit money laundering and 18 counts of money laundering to conceal specified unlawful activity. The US authorities are also seeking to seize US$128 million which they claim Smith gained through wire fraud.
They have also requested that the court allow them to seize premises in Florida which Smith purchased allegedly with criminal proceeds, as well as precious gemstones and metals, jewellery and other property which are owned by him.
Intent to defraud
The former Olint head is on bail in the Turks and Caicos Islands, where he is facing 30 charges and is now expected to be the subject of an extradition request from the US.
In the indictment, US authorities claim Smith’s fraudulent transactions started no later than February 2005 and continued through July 2008.
According to the indictment, Smith “knowingly, wilfully and with intent to defraud, did devise a scheme and artifice to defraud investors, and for obtaining money and property from investors by means of false and fraudulent pretences, representations and promises … .”
It continues to charge that Smith “broke the law by soliciting and obtaining more than US$200 million in funds under false pretences, failing to invest investors funds as promised and misappropriating and converting investors funds to (his) benefit and the benefit of others without the knowledge or authorisation of the investors … .”
The US prosecutors allege that Smith solicited or caused others to solicit prospective clients to open trading accounts with Olint, Olint Corporation, Olint TIC and TIC VEX based on his promise to use their money in foreign-exchange trading with a high return on their investment and with only 20 per cent at risk, “even though (the defendant) well knew that these representations were false”.
According to the prosecutors, Smith did not invest the money in foreign-exchange trading as promised, while sending his clients false statements about their accounts.
