Wed | Oct 18, 2017

OLINT investors unhappy with small payout

Published:Monday | April 3, 2017 | 10:13 AM

At least one investor in failed ponzi scheme OLINT is expressing disappointment at the payout made by the fund set up to compensate victims.

Cheques for investors who lost money in the scheme were issued on March 20, 2017.

The scheme was started by David Smith in Jamaica in 2005 then operations were later moved to the Turks and Caicos Islands.

The Administrator for the US versus David Smith Remission Fund says all victims received a pro-rata share representing 2.815 per cent of their recognised loss amount.

It says this is because the US$5.2 million of forfeited funds currently available for remission is less than the US$187.4 million in losses incurred by the victims.

However, one investor who shared a copy of the letter sent to him with The Gleaner/Power 106 News Centre said he was disappointed with the payout.

He’s receiving approximately US$2,000 after investing close to US$100,000 in OLINT.

The letter said cheques must be cashed or deposited no later than June 19, 2017 or the money would be re-allocated to other victims.

Smith was convicted in a Florida court in September 2011 on multiple counts of wire fraud and money laundering.

He was ordered to forfeit assets seized by federal authorities.

The US Department of Justice said the forfeited funds would be returned to victims of the scheme through a process called ‘remission’.

Victims were asked to submit their claims by June 2014, and the Department of Justice said it received 5,652 petitions for remission.

Of those submitted, 3,400 petitions were granted.