Barbara Gayle, Staff Reporter
The legal battle between Olint Corporation Ltd., an investment club trading in foreign exchange and the Financial Services Commission (FSC), which had issued cease and desist orders against the club in March last year, is scheduled to start in the Supreme Court today.
Documents were allegedly seized by agents from the Financial Investigations Department. Olint and one of its directors, David Smith, has sued the FSC seeking US$5 million for wrongful intrusion at the club's office in New Kingston.
In the suit, the claimants are also challenging the legality of the warrants under which the authorities acted when they entered the premises and seized documents. Olint is contending that it has not breached any laws.
The suit has been set for hearing before Mrs. Justice Norma McIntosh.
Olint is also seeking exemplary and punitive damages occasioned by the alleged unlawful actions of the defendant. The claimants are contending that they suffered damages, injury and loss of reputation. They are also seeking damages for trespass and tortuous interference with property. An injunction is being sought to restrain the FSC and its agents from entering into any premises which it has leased, operated or controlled purportedly in pursuit of any suspected offence under Sections 7 and 9 of the Securities Act.
Cease and desist orders
Olint first took the matter to the Supreme Court in March last year to have the cease and desist orders set aside.
Mrs. Justice Ingrid Mangatal heard legal arguments in the matter and in November, she granted a stay of execution of the FSC's cease and desist orders until the trial of the civil suit.
The FSC claimed that it carried out investigations and found that Olint Corporation had breached the Securities Act and was not licensed by the FSC to carry out foreign currency trading activities.
A condition of Justice Mangatal's order is that there must not be any increase in the number of members of the club until the suit has been disposed of.
"I am of the view that granting a stay of execution of the com-mission's cease and desist order is the course that appears to offer the best prospect that eventual injustice will be minimised," the judge said.
Lord Anthony Gifford, Q.C., and attorneys-at-law Christopher Dunkley and Huntley Watson, who represent Olint Corporation and David Smith had argued that it was unlawful for the FSC to act under the Securities Act and not to give notice under the Financial Services Commission Act.
Lawyers from the Attorney- General's Department are representing the FSC which is defending the claim.
Correction & Clarification
The Financial Services Commission has said that the matter which was heard before the Supreme Court during the week of March 26 was a suit commenced by Olint Corporation Ltd. against the FSC, appealing against the cease-and-desist orders that were issued to them on March 24, 2006.
The orders had instructed Olint, Overseas Locket International, Lewfam Investments and others to stop conducting, with immediate effect, “all securities business and investment advice business and from holding themselves out as carrying out securities business and investment advice business within the meaning of the Securities Act,” until the relevant licences had been acquired.
The FSC said that a story published in The Gleaner on Monday, March 26, incorrectly stated that the matter being heard included a suit seeking damages for exemplary and punitive damages occasioned by the alleged unlawful actions of the FSC.
Olint has filed a claim against the FSC seeking damages including US$5 million for wrongful intrusion at its New Kingston office but the FSC has said that a date has not yet been set for the hearing.
