Dennise Williams, Staff Reporter
THE FINANCIAL Services Commission (FSC) conducted a raid in conjunction with armed police officers on the home and New Kingston offices of David Smith, proprietor of OLINT Corporation on Monday.
He is under investigation for activities that are in contravention of the Financial Securities Commission Act.
According to industry insiders, Mr. Smith has for some time been providing high net worth Jamaicans with exceptionally high returns on their US dollars investments.
"David has been giving up to a 14 per cent return per month and a 147 per cent return per annum," a source said, "Plus there is no minimum limit on the amount of money you can invest."
This is in an environment where brokerage houses are giving up to 7.5 per cent per annum on amounts locked in for two years or more, Mr. Smith has clearly filled a gap.
Mr. Smith does not solicit money. He is simply given money by individuals attracted by the high interest rates. This money is then deposited in a Panamanian bank and used to make money for the investors.
He went to the Supreme Court on Tuesday to take out an injunction against the FSC and demand the return of seized documents.
NOT A SECURITIES DEALER
Mr. Smith, in court documents, stated that he merely provides customer service and is not a securities dealer.
Wednesday Business has not been able to ascertain whether Mr. Smith has continued to operate OLINT as he could not be contacted for comment.
One source estimated was that Mr. Smith may have invested US$20-US$50 million for his clients.
Said another source, "My uncle-in-law has deposited US$500,000 with David. He gets 10 per cent return on his money per month, not per year. He is retired and wants to get the most out of his life savings."
The FSC stated yesterday that it is currently investigating the operations of OLINT as well as Lewfam Investments and Trading. It said investigative work revealed that persons may have breached the Securities Act.
Consequently on March 3 and March 6, assisted by members of the Financial Investigations Division, search warrants were executed on the premises of the companies and copies made of records, cheques, securities and cash. The documents found were seized.
