Garwin Davis, Gleaner Writer
David Smith, the foreign exchange trader at odds with financial regulators, says he has never guaranteed his clients the consistent returns reported in the press, and that his firm Olint is now a legitimate player in other Caribbean jurisdictions.
"While we do give high returns on investments, we do not guarantee anybody any 10 per cent monthly returns as some reports have been making out," said Smith from his current base in Turks and Caicos.
He also told Wednesday Bus-iness that Olint has been approved to offer financial services in the Turks and Caicos Islands.
"Again for the record, we are licensed here in the Turks and Caicos and open to all kinds of scrutiny - here and in Jamaica," he said.
Strong operation
Added Wayne Smith, his brother and spokesman for Olint, "We got our licence last November following investigations and due diligence by the TCI FSC which included extensive background checks - including with the Jamaican police."
Wayne also said Olint was licensed in Panama. Asked why not Jamaica, he said enquiries had been made but "the Jamaica FSC pointed Olint to the Bank of Jamaica and vice versa."
David Smith insists his operation remains strong despite pressure from the Financial Services Commission (FSC), which raided the company last year.
"Once the FSC decided to go after OLINT, club members were given the opportunity to retrieve their investment and as the record will show, we have not folded," said the forex trader. "As we have long maintained, our operations are legitimate and above board."
But Olint last week refused to disclose the funds it has under management. Speculative reports Ñ and rumours Ñ put funds entrusted to Smith's firm at US$300 million-US$400 million ($20 billion to $27 billion), but the self-styled investment club refused to even signal whether the estimates were close to the mark.
"I don't think we should address the question about the amount of US currency we have at our disposal," said Wayne Smith. "I will not confirm nor deny that."
Olint is not licensed in Jamaica to trade securities, which the FSC maintains its activities amount to Ñ the two are duking it out in court.
The FSC raided Olint's Kingston offices in March 2006 shutting down its local operations, saying it lacked a licence to trade. The Supreme Court will begin hearings in March 2007 on the case.
The FSC insists that once a company is doing business with Jamaicans, it has to be licensed here.
Last week, the regulator urged investors to demand more accountability from operations like Smith's, saying they should insist on access to financial statements to track the performance of the company and the management of their funds.
"Any investor with their money at stake should want to know this," said FSC communications officer Nadine Newsome.
But Smith manintains his clients are satisfied with his performance.
"The fact of the matter is that we are not a Ponzi scheme as some people would like to brand us and there havenÕt been any complaints from our club members."
In fact, some of those investors speaking with Wednesday Business have declared themselves highly pleased with Smith's management of their money and have come out in his defense.
Bobby Richardson, a real estate developer in St Ann, says he's recouped the US$70,000 he invested.
"The real pyramid schemes which currently exist in Jamaica have not been given the kind of scrutiny that has been given to Olint, and the question is why?" said another Olint client Steve Seal.
"Olint is the real deal and has in David Smith one of the finest business minds in the world."
Another investor said his returns were big enough to get him out of debt.
"I was in debt up to my head until I was introduced to Olint," said Richard Smith, St Mary resident and owner of Prime Time Promotions. "I was in danger of losing my house, my family, everything I have worked so hard to achieve. I put my money in the hands of a financial genius and a happier man you will never find."
But the FSC, despite the testimonials, urged investors to demand financial statements from Olint to monitor the performance of their funds and ensure their monies are safe.
"Any investor with their money at stake should want to know this," said FSC communications officer Nadine Newsome, referring to Olint's financial health.
Finance minister Dr Omar Davies two weeks, January 10, warned at a capital markets conference that there would be no cushion for participants in high-risk schemes if their investments crash.
But said one investor who requested anonymity: ÒWhat harm would it do to sit down with David Smith and see what is operation is all about rather than going after him,Ó asked the club member.
"Why not give him a portion of the NIR and see what kind of returns he comes up with? But even more telling, have we heard one single complaint from an investor?"
business@gleanerjm.com
