Barbara Gayle, Staff Reporter

Smith - Janet Silvera Photo

Embattled investment scheme Olint Corporation Ltd scored a major victory yesterday when the Court of Appeal ruled that its accounts at the National Commercial Bank (NCB) must not be closed.

The accounts are to remain open until the Supreme Court hears the civil suit which Olint has filed against the bank. A speedy trial has been ordered in the matter.

"There are serious issues to be tried in this matter, particularly in relation to the power of a bank to close an account where there is no evidence of any proven illegal transactions in respect of conduct of operation of accounts," Justice Seymour Panton, president of the Court of Appeal, said in the unanimous decision. Justice Howard Cooke and Justice Dennis Morrison also heard the appeal.

Attorney-at-law Dave Garcia told The Gleaner that NCB would be instructing its lawyer, Michael Hylton, QC, to take the matter to the United Kingdom Privy Council.

hylton gets green light

Yesterday, the Court of Appeal also gave Hylton the green light to represent NCB. Olint had contended that because of Hylton's former positions as solicitor general and chairman of the Financial Services Commission, he should not represent NCB.

Olint, which was represented by attorneys-at-law Gordon Robinson, Georgia Gibson-Henlin and Maurice Manning, had appealed against a Supreme Court ruling in April, which turned down Olint's application for an injunction barring NCB from closing its accounts until its civil case had been heard. Olint went to the Court of Appeal and got a stay of the Supreme Court order until the appeal was heard.

The Court of Appeal said further that there were serious issues to be tried in relation to allegations of conspiracy being made by Olint against NCB. The court said damages would not be an adequate remedy if Olint were to succeed in its case.

NCB had served notice on Olint in November last year that it was gong to close its accounts. The bank contended that Olint had not complied with certain requests, one of which was the filing of an audited financial statement.

On Wednesday, NCB filed an application seeking directions from the Court of Appeal as to how to proceed in respect of Olint's accounts, in the wake of events taking place in The Turks and Caicos Islands.

The court heard the application yesterday and dismissed it.

David Smith boss of Olint Corporation Ltd, has assured investors that if permitted he will make payments to members within nine months.

Smith gave the assurance in a statement issued yesterday by three of his lawyers, Lord Anthony Gifford, Q.C., Jacqueline Samuels-Brown and Tom Tavares-Finson.

Smith said he has not applied the funds of members to his own use. The lawyers said they had full consultations with Smith and his wife Tracey and their lawyers Barnett and Associates during a visit to the Turks and Caicos Islands (TCI) following the restraint order obtained by the attorney general on July 11.

They said the restraint order has prevented the Smiths from using their assets.

The lawyers said they recommended a process aimed at obtaining a discharge of the restraint order and securing the return of the computers and documents which were seized from them on July 14.

gag order

The lawyers said the Supreme Court in TCI imposed a gag order preventing further disclosure of the restraint order proceedings. Consultations were also held in relation to the general situation of David Smith, Olint and its members. The lawyers said that Olint and David Smith enjoyed an excellent reputation for fulfilling their obligations to their membership up to March 2006 when the Financial Services Commission (FSC) without warning raided their offices, seized their electronic and other records and issued a cease and desist order against them.

"These events caused Olint to be deprived of their records for a month, and at the same time there were multiple demands by members for their funds. The accounting and record-keeping systems were dislocated to an extent which to this day has not been resolved. Many members were inadvertently credited with more gains than had been earned for them, and in some instances this led to overpayment when they requested their funds.

"Since March 2006 Olint has had to move its operations to TCI , address continued demands from club members, and pursue litigation against both the FSC and NCB (National Commercial Bank), which had ordered Olint to close its account. Its appeal against FSC, relating to the validity of the cease and desist order, is pending before the Court of Appeal and will be vigorously pursued, and an early date is being sought".

"David Smith wishes club members and the wider public to know that at all times his intentions and activities have been directed towards honestly fulfilling his obligations towards his members. He had not applied the funds of members to his own use.

"However, as a result of the pressures and hostile actions mentioned above, Olint has been unable to deal expeditiously with its accounting problems. Time is needed to conduct a full audit of members' accounts and balances.

"David Smith wishes us to say that he is deeply sorry that members have suffered delay, disappointment and extreme anxiety as a result of the difficulties of Olint. If he is permitted to do so, he commits himself to fulfilling his obligations and making payments to members within nine months. He asks members to bear in mind his record of conscientious achievement," the statement said.