Former Turks and Caicos Islands Premier Michael Misick is being sued in Fort Lauderdale by a physician who claims he was defrauded in a TCI-based get-rich-quick scheme.
Plaintiff Christopher Walker, a resident of Orlando, Florida, is seeking $2.4 million in compensatory damages against Misick, who resigned as TCI Premier on March 23, 2009 after being implicated in corruption; Hallmark Bank & Trust Ltd., which is licensed in the TCI; Brian Trowbridge, a Canada-trained attorney who is Hallmark's Chairman and CEO; Overseas Locket International Corporation ("OLINT"), described as a Jamaica corporation operated from the TCI; David Smith, described as OLINT's principal; Wayne Smith, described as David Smith's brother and an employee of OLINT; The Turks and Caicos Islands Investment Agency, which "encourages foreign investment in the Turks & Caicos Islands"; MasterCard Worldwide and MasterCard International LLC, which provide card services to Hallmark Bank.
The complaint was initially filed at the Circuit Court of the Seventeenth Judicial Circuit, in and for Broward County, Florida, on March 20, 2009 but was removed to the U. S. District Court for the Southern District of Florida on May 20, 2009 by MasterCard International LLC.
The causes of action are RICO, fraudulent conveyance, conspiracy, fraudulent misrepresentation, breach of contract, unjust enrichment, and accounting.
In his complaint, Walker does not state how much money he actually invested in OLINT, instead claiming that he has lost $2.4 million in "principle [sic] and interest".
"Defendant OLINT and OLINT's principal, Defendant Smith, invest in foreign currency exchange trading through various trading platforms (called "Forex")," it was stated in the complaint. "Although OLINT was a Jamaican corporation, OLINT operated their Forex trading mainly in the Turks & Caicos. In Jamaica, OLINT's business operations were being run by another principal, Wayne Smith, David's brother. As early as 2006, OLINT had announced that it would transfer part of its Forex trading business to Orlando, Florida.
"Defendant Hallmark is a banking institution operating out of the Turks & Caicos. Hallmark offers MasterCard card products and conspicuously displays the MasterCard logo, and proudly proclaims their alliance with MasterCard.
"Defendant Trowbridge is an attorney operating out of the Turks & Caicos and also serves as Director, CEO and Chairman of Hallmark.
"Hallmark and OLINT signed an operating agreement whereby Hallmark agreed to operate as a conduit to funnel money from investors into an "investment club," in this case OLINT. Essentially investors [including Plaintiff] would remit funds to Hallmark at which time Hallmark would remit the funds to OLINT.
"Hallmark, and/or their principals and agents, traveled to Jamaica to recruit investors for this scheme, and co-signed multiple account agreements with investors while in Jamaica.
"Trowbridge was paid over $300,000 for his dealings with OLINT and Smith and was unjustly enriched.
"Due to the aggressive advertising of the high rate of returns that Defendants OLINT and Smith engaged in, Plaintiff decided to invest in OLINT on or around September of 2007. At this time principles [sic] or agents of OLINT proposed that Plaintiff invest with assurances that he could have access to his money at any time through OLINT's online accounting website (the "website").
"Plaintiff was also encouraged to invest because Defendants MasterCard endorsed Defendant Hallmark's business by partnering with them to offer card products. MasterCard's reputation created a situation that made Hallmark appear to be a strong and legitimate banking institution, which further induced multiple investors, including Plaintiff, to feel more secure about investing with OLINT.
"Defendants MasterCard were a third-party beneficiary to Hallmark's involvement with OLINT and Smith's fraudulent activities.
"Defendants MasterCard are still affiliated with Hallmark despite their business practices and Hallmark is still using the MasterCard name and reputation to gain clients.
"Defendant TCII is an independent governmental agency that is mandated to attract offshore investment to the Turks and Caicos Islands. Conrad C. Higgs was the CEO of TCII. TCII encouraged investors, some based in Florida, to invest in companies located in, and within the islands of the Turks and Caicos. In addition, TCII did nothing to discourage investors from investing in OLINT and Hallmark before or after their fraudulent behavior and business practices came to light.
"Defendant Misick was the first Premier of the Turks and Caicos. Defendant Misick, by virtue of his political position, was also the Minister for the Commerce and Development and The Turks and Caicos Island Investment agency. As Minister to TCII, and in other capacities, Misick encouraged investors, some based in Florida, to invest in companies located in, and within, the islands of the Turks and Caicos. In addition, Misick did nothing to discourage investors from investing in OLINT and Hallmark before or after their fraudulent behavior and business practices came to light.
"The governor of the Turks and Caicos, upon suspicion of corruption within the government, requested a Commission of Inquiry be dispatched from London, with The Right Honorable Sir Robin Auld serving as the Commissioner of Inquiry. Sir Auld was tasked with investigating the corruption charges, levied at Misick himself, members of his immediate and extended family, among others.
"Sir Robin Auld's report suggested that there was "systemic" corruption within the government of the Turks & Caicos and suggested that the Constitution of the Turks and Caicos be partially suspended, with governmental duties being handled by the British.
"Upon the release of the report, Misick resigned his political position.
"Plaintiff signed an agreement with Defendant OLINT, the terms of same would govern Plaintiffs account with OLINT. This agreement was co-signed by OLINT [Smith was the actual signatory, being principal of OLINT] and Hallmark, OLINT and Hallmark are equally liable for damages to Plaintiff.
"During 2007, Plaintiff entered into an agreement with representatives from OLINT and Hallmark and was provided with terms that apply to the account (the "Agreement") with OLINT to open an account whereby OLINT was to invest Plaintiff's funds in foreign currency exchange trading. Based upon the Agreement and other representations made by Defendants and their principals, including Defendant Smith, Plaintiff was to receive a significant return on his respective investment. OLINT and Hallmark are both liable for damages to Plaintiff.
"Plaintiff was promised that he would be able to access his account information through OLINT's interactive website, including access for deposits, withdrawals, and the general monitoring of the account as more fully described below.
"Plaintiff made multiple deposits to his account at OLINT and was continually promised full access to his money, including the ability to withdrawal it fully, if he so desired.
"Beginning in early 2008, Plaintiff repeatedly made written and oral requests for the withdrawal of Plaintiff's funds, to Defendant OLINT, and several principles and employees of same, in accordance with the terms of Plaintiff's Agreement.
"Notwithstanding such demands by Plaintiff, OLINT has failed to respond to Plaintiff's requests for the withdrawal of the Plaintiff's funds, in breach of the Agreement.
"Upon information and belief, OLINT and Smith sent multiple wire transfers to the United States in order to evade the Jamaican and Turks & Caicos authorities that were investigating OLINT and Smith's business practices.
"Also upon information and belief, multiple wire transfers totaling roughly $100 million from OLINT and/or Smith were sent to the United States and, based upon information and belief, Hallmark was involved in wire transfers to and from OLINT and Smith.
"Plaintiff never authorized the transfer of his funds from his account at OLINT to any other person or business entity." Walker alleged that the principals of OLINT and Hallmark, including David Smith and Brian Trowbridge, "conspired to defraud investors" and that Hallmark and Trowbridge "were instrumental in laundering money for OLINT and Smith".
"Defendants have refused the repeated requests to return Plaintiffs money," it was alleged in the complaint.
"Upon information and belief, OLINT's principals have fled Jamaica avoid the Jamaican authorities and have absconded with Plaintiffs funds and deposited and/or invested them into several entities, with the intent to hinder, delay, or defraud Plaintiffs efforts to recover his funds with the assistance of Hallmark and Trowbridge.
"Defendant Smith has been arrested, in the Turks & Caicos, for his involvement in OLINT's fraudulent activities and charged with fraud.
"By this action, Plaintiff is seeking to recover the principle [sic] and profit of his account with OLINT. According to the terms of the Agreement, OLINT was to use Plaintiffs funds for foreign currency exchange trading. Hallmark and Trowbridge are equally responsible for the mis-dealings of OLINT and Smith because they co-signed Plaintiffs Agreement. However, due to Defendant's fraudulent misconduct, Plaintiff has lost access to his funds and/or has completely lost his funds, and as a result has suffered substantial damages.
"Plaintiff is also seeking damages for OLINT and Hallmark's breach of the Agreement by failing to honor requests made by Plaintiff for the withdrawal of his funds, depriving Plaintiff of his property for an indefinite period of time, which resulted in OLINT, Hallmark, and their principals (including Defendants Smith and Trowbridge) being unjustly enriched.
"Plaintiff has had to hire the undersigned attorney, as well as counsel in Jamaica and England in an attempt to recover his funds, and has had to pay attorney's fees for same.
"Plaintiff has suffered losses of approximately $2.4 million due to the misconduct of Defendants." As previously reported by OffshoreAlert, OLINT Corp. offered investors returns of up to 15% per month and is believed to have raised at least US$350 million. The business moved to the Turks and Caicos Islands after regulatory action forced it out of Jamaica in or around March, 2006. Despite the crudely fraudulent nature of its operations, the OLINT group was granted a license by the TCI Financial Services Commission and, according to the Turks and Caicos Weekly News, Misick publicly described David Smith as a "model citizen" in December, 2007, praising his contribution to the local economy and commenting that "Jamaica's misfortune is indeed the good fortune of Turks & Caicos". Smith was later arrested in the TCI and charged with multiple counts of theft, fraud and false accounting. He has denied the charges.
