BVI Offshore Business: Grey Area

BVI company accused of selling health insurance without license

Filed under: BVI Companies, BVI licenced business, Unethical business practice — Mike @ 12:23 pm

The Florida Office of Insurance Regulation issued a cease and desist order to American Assurance Underwriters Group and its affiliates, Worldwide Expatriate Administrators LLC and Worldwide Expatriate Advisors LLC, which are selling health insurance in Florida. The State insurance regulators determined the companies marketed and sold health insurance that was underwritten by AAUG Insurance Co. Ltd. without a license.

AAUG Insurance Company Ltd. is a captive insurance company licensed by the British Virgin Islands and, by words of officials, it does not hold a certificate of authority from the Office of Insurance Regulation.

BVI company and its affiliates have 21 days to challenge the action. AAUG’s executive Roy Alvarado said that they did not receive the order and would not comment until they receive and analyze it.

In September 2009, AAUG’s president Mr. Gregory spoke at a conference about the licensing issues and other regulations associated with global health insurance products in Orlando, Florida.

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BVI hedge fund to lose over $350 mln in Madoff affair

Filed under: BVI Investment Funds, BVI licenced business, Management Fraud, Offshore investment schemes, Ponzi scheme — Mike @ 7:17 am

British Virgin Islands-registered fund Auriga International Advisers has lost more than 400 mln Swiss francs ($350 mln) that were invested with the company’s main shareholder Bernard Madoff. According to the information provided by Jacques Rauber, the majority shareholder of the fund, as well as to the reports published in Swiss weekly SonntagsZeitung, funds of the company were wholly invested in Fairfield Sentry – the US fund which, in its turn, invested all of its assets, which made $7.3 billion, with Madoff.

Auriga is licensed to provide financial management services by the BVI authorities. There is no much information about Auriga’s investors, except for the fact that among them there are institutional investors and high net worth individuals. Jacques Rauber also said that another fund, Auriga Alternative Strategies, was affected much less.

This case is similar to the court case with transfering money of another BVI-domiciled company Repex Ventures into funds run by Madoff. The arrested money manager has confessed to losing up to $50 billion in a giant Ponzi scheme.

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Suspicious investment scheme company looking for BVI licence

Filed under: BVI Investment Funds, BVI licenced business, British Virgin Islands, Offshore investment schemes — Mike @ 10:22 pm

Capital Blu Management, the newest firm which appeared in the alternative investment scheme sector, this month is going to place an application before the BVI Financial Services Commission to legitimise its operations. However, by words of company’s chief executive Donovan Davis Jr, Capital Blu is willing to accept investments, but only if remitted to its offshore operation in the British Virgin Islands. He also said that the company had initial discussion with the BVI FSC, and now is going to submit an application to move on with receiving the licence.

Capital Blu mainly operates in Melbourne and Florida, and claims to have branch offices in London, Philippines, and Sydney, but the website does not provide much detail about its locations and the people standing behind the company.

Davis, Jamaican by nationality, will organise free seminar in Kingston on the foreign exchange market and wealth creation, to raise interest to his company. Then, Capital Blu is going to hold similar seminars in Trinidad and Hong Kong. He plans to establish a hedge fund in Jamaica, saying that his intent has been conveyed to the FSC. It should be said that the investment schemes operating in this field are all said to trade foreign currency derivatives, and Capital Blu plans to explore the same area. Davis said that, in his talks with the FSC, he seems to be on the same page in terms of the structure.

By words of FSC spokesperson Nadene Newsome, Capital Blu has indicated its intention to apply for a licence as a securities dealer. He said the type of discussions referred to by Davis would not be in the remit of the FSC.

Davis left a comment that he would not accept any investment within Jamaica, until the licensing process is complete â€“ meaning he will not collect funds here. He added that he was quite willing to trade accounts on behalf of clients, but they must send their funds to the BVI.

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Insurer with expired BVI license accused of operating a Ponzi scheme in California

Filed under: BVI licenced business, Court decisions, Frauds, Ponzi scheme — Mike @ 4:30 pm

Last week, the jury in Monterey County, California, convicted UK citizen Michael Vousden of selling fake medical malpractice insurance to women’s clinics across the country â€“ in 36 counts. Vousden was arrested in 2004, convicted of insurance fraud, grand theft, forgery and tax evasion. Now he is to be sentenced on April 4, 2008, and can face 34 years in prison.

The matter is that Vousden has never been licensed in California or in any other part of the United States. He was once licensed to sell insurance in the British Virgin Islands, but the British Virgin Islands government refused to renew his license in 2001. Vousden insisted that his licensing problems arose from the bureaucratic dispute between him and the BVI government. By his words, the difficulties and poor business decisions did not give him any possibility to pay his taxes, although he intended to pay them with late penalties when he was financially stable.

John Barrett, spokesman for the state Franchise Tax Board, said Vousden’s contention that he planned to pay taxes in the future were nonsense. Ronald Smetana who prosecuted the case for the state Attorney General’s Office, said Vousden was never licensed to sell insurance in the United States, and actually he is operating a Ponzi scheme, using premiums from his clients to pay for legal bills and large mansion in Carmel Valley. The scheme was destroyed with a $500,000 judgment against a doctor insured by Vousden at a Texas clinic.

Smetana said he was pleased with the verdict of the jury, but he had not decided how much time he would recommend for sentencing when Vousden goes before Judge Terrance Duncan on April 4. In his turn, Defence attorney Miguel Hernandez said he is planning to appeal for a new trial at the April 4 hearing. He also said Vousden will fight efforts to be deported to Great Britain.

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December 26, 2009

BVI company accused of selling health insurance without license

January 28, 2009

BVI hedge fund to lose over $350 mln in Madoff affair

March 17, 2008

Suspicious investment scheme company looking for BVI licence

February 26, 2008

Insurer with expired BVI license accused of operating a Ponzi scheme in California