The hunt continues in Barbados for funds suspected to have been part of an investment scheme which cost 1 900 Canadian investors at least $300 million, and involved an offshore bank shut down by Barbadian regulators more than eight years ago.
In July 2005 the Central Bank of Barbados took control of Olympus United Bank and Trust SCC, citing its failure to comply with the International Financial Services Act and effectively ending its operations.
Since then Canadian receivers Richter Advisory Group Inc. and Barbados accounting firm Brian F. Griffith & Company, acting as joint custodians appointed by the Barbados High Court, have followed a sophisticated money trail in an effort to track down Olympus monies.
Two years ago, reports indicated about $14 million was accounted for in Barbados, including $4 million in real estate, but latest indications are that it will be at least another year before funds are fully tallied and disbursed following approval from the court here.
Documents seen by BARBADOS BUSINESS AUTHORITY detailed this latest development, which emerged last week when the Ontario Superior Court of Justice issued an order granting Richter a one-year extension to complete its work.
In addition to Barbados, separate investigations involving companies affiliated to Norshield Asset Management (Canada) Limited are being conducted in Canada and the Bahamas and there has been a protracted claims process.
“Further distributions to the retail investors will be delayed until such time as those claim processes are completed, and distributions are approved by the supervising courts in each of Barbados and The Bahamas,” a new report on the matter said.
“Extensive forensic investigative work into the activities of the Norshield Companies, Olympus Univest, Mosaic and the Channel Funds has led the receiver to conclude that . . . Canadian, Barbadian and Bahamian entities, as well as their directors and offices, all operated in concert and with common interest despite attempts to give the appearance that many of the entities and individuals were unconnected and acted independently,” the document alleged.
Officials traced more than $116 million in “third-party payments” made out of Barbados, but were unable to conclusively determine the nature of the compensation.
They also said the effort to recover assets was “hampered by the multi jurisdicational nature of the Norshield Investment structure, missing and destroyed books and records and by competing claims to assets throughout the investment structure”.
In its seventh receivers report dated October 15, 2013, Richter said there were “numerous claims” in The Bahamas, but “far fewer” in Barbados.
“The Joint Custodians have resolved the most significant competing claim resulting in the withdrawal of such claim, which will ultimately benefit the retail investors.
“The treatment of the claims in the liquidation of Olympus Bank and the distribution of funds available to the creditors of Olympus Bank will be completed subject to the approval of the Barbados High Court of Justice,” the company informed the court.
It expected the process to be “substantially completed” by the end of October next year.