Davis Smith Admits to Multi-Million Dollar Fraud

According to a Caribbeannewsnow release, David Smith, former head of collapsed investment scheme Olint, pleaded guilty in a Florida court.

The Jamaica Observer reported that, as part of a plea agreement, Smith has admitted guilt on four counts of wire fraud, one count of conspiracy to commit money laundering and 10 counts of money laundering.

He is facing up to 20 years imprisonment, but is likely to get less because of his plea bargaining.

Last year, he received a prison sentence of just over six years in the Turks and Caicos Islands, where he pleaded guilty to fraud and conspiracy charges. US authorities collected him from the TCI in November to face federal charges.

Prosecutors said that more than 6,000 people invested with Smith. He admitted in his plea agreement that Olint was a “massive” Ponzi scheme, where he paid returns to investors not from profit but from their own money or that paid by subsequent investors.

In addition, funds transferred to his own personal bank accounts reportedly enabled Smith to live a lavish lifestyle. Among his expenditures included political contributions, gambling, a down-payment for the purchase of a Lear jet and sponsorship of the Jamaica Jazz and Blues Festival.

A raid by authorities in Jamaica forced him to shut down his business in Kingston and relocate to the Turks and Caicos Islands, where former premier Michael Misick once described him as a “model citizen”.

 

(This article was written with content incorporated from a Caribbeannewsnow report)

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