Attorney-at-law Nicole Foster-Pusey, who is representing the FSC, made the disclosure Tuesday during submissions in the Court of Appeal.

Foster-Pusey submitted that the FSC had the authority to issue a cease-and-desist order on Olint. The attorney was responding to submissions made by Olint's lawyer, Lord Anthony Gifford, QC and Huntley Watson that the FSC had no authority in law to issue the order because the company was a private club and did not fall under the jurisdiction of the FSC.

Reasonable suspicion

Foster Pusey said when the FSC issued the cease-and-desist order, it had reasonable suspicion that Olint was dealing in securities. She said the fact that Olint was collecting monies from investors and paying returns on the investments meant Olint was doing business, in contravention of the Securities Act.

The cease-and-desist order was issued in March 2006 on the grounds that Olint did not have a licence to trade in securities.

She said Olint was an agent for Overseas Locket, which was incorporated in Panama.

The FSC lawyer disagreed with submissions made by Olint's lawyers, that the firm was not dealing in securities and the FSC had no authority to issue the order.

Olint is appealing against a Supreme Court ruling in December 2007 which upheld the cease-and-desist order.