Headlines:
| OLINT in more trouble |
|
|
| Monday, 14 July 2008 | |
 There is more
indication that all is not well at the unregulated investment scheme OLINT
Limited.RJR's Financial Report obtained a copy of a letter sent by OlLNT's Head David Smith to clients, some of whom have been on edge since the company failed to make payouts on Friday as promised. Mr. Smith claims that negative and speculative press reports including recent allegations which linked OLINT to money laundering activities in the United States have put a strain on the management of the fund. The letter revealed that there has been a major run on OLINT. Mr. Smith said there have been increasing levels of encashment and hinted that it will be difficult for OLINT to withstand such a run indefinitely. He said over the next few days, OLINT's clients will receive letters setting out the future direction of the Club and how they will be affected by the current state of affairs. No mention was made of a new date for payouts. News of the worsening situation at OLINT comes two months after the company unveiled several changes to the way it does business with its clients which included restrictions on the frequency with which members can request payouts. In addition, clients were told that they would face lengthy delays in getting back their funds. Mr. Smith also has announced that due to threats to staff and a bomb threat within the last few days, the Club Member Care Office will be closed to the public as of Monday. The OLINT boss said all customer care and e-mail lines will remain open to facilitate communication with clients. In a letter to investors, Mr. Smith said the company fully appreciates that this sort of behaviour may have resulted from its failure to honour recent encashment requests in a timely fashion. |