Head of OLINT Investment Club, David Smith, was arrested yesterday by police in the twin-island state of Turks and Caicos, following months of investigation into the operations of Olint Corporation in those islands.

He was subsequently granted US$1 million bail with surety. Smith voluntarily surrendered his travel documents, police say.

Speaking with The Gleaner/ Power 106 News Centre last evening, Turks and Caicos Islands' (TCI) Deputy Commissioner of Police, Hubert Hughes, said Smith was on fraud charges - theft, false accounting and uttering false documents.

No court date

A date has not yet been set for Smith's court appearance. Hughes said there was "a possibility that my investigators will have to seek assistance from Jamaica".

At the same time, Assistant Superintendent Mark Knighton of the TCI's Financial Investigation Unit said the authorities were not ruling out more arrests.

Jamaicans have millions of dollars tied up in the investment club.

This is the second major blow for the failed investment club in less than a week.

Olint had been fighting to keep its account open with the National Commercial Bank.

But last week, the London-based Privy Council ruled that the bank should go ahead and close Olint's accounts.

Up to press time, The Gleaner/ Power 106 News Centre was unable to make contact with any of Smith's lawyers for a comment on his arrest.

Last July, Smith's offices in the TCI were raided by police who seized computers and files.

Only days before the raid, Smith's clients reported facing trouble with their investments. Smith also ordered his New Kingston office in Jamaica closed.

Olint had been facing a string of legal problems since 2006 when the Jamaican Financial Services Commission served a cease-and-desist order on the entity.

Last year, Smith was also named in an investigation of another company by a US-based independent regulatory body for suspicious activity.

Smith was named as principal of the company and was alleged to have contributed close to 100 per cent of its capital.

Olint's troubles

✓ March 31, 2006: Lawyers representing investment club Olint go to the Court of Appeal in Jamaica to challenge a Supreme Court ruling refusing to grant an order for the Financial Services Commission (FSC) to return documents which were seized.

✓ November 3, 2006: Olint was given the green light by the Supreme Court to continue its operations.

✓ December 24, 2007: Investment club Olint lost its appeal in the case it brought against the FSC in the Supreme Court.

✓ July 15, 2008: Olint's Turks and Caicos Island offices are raided. Police seize computers and files.

✓ February 5, 2009: Olint boss, David Smith arrested in Turks and Caicos Islands and granted US$1 million bail.