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Run on Olint causes delays in payments
Monday, March 03, 2008
An apparent run on David Smith's Olint investment club has led to "severe delays" in members accessing their funds, according to alternative investment club, Wealthbuilder in a February 25, 2008 circular to its members.
Wealthbuilder which is owned by Tony Williamson, said it had been informed by Olint that because of "excessive encashment demands" over the past few months, the main account of their broker "has come under the extreme scrutiny of their bankers, Wachovia" in the United States.
"The bank is conducting due diligence on the account and this has caused significant delays in money transfers. Olint is now working on an interim process with a view to ensuring dependable encashment delivery dates," the club said. "As soon as this is finalised we will be communicating with you."
However, the Wealthbuilder Club warned members with funds in Olint that "until the situation changes, requests for encashments through Olint may be severely delayed as a result of the above-mentioned position... As soon as the situation with OLINT changes, the process will be expedited."
In a follow-up circular, the club noted a number of persons had been inquiring whether Olint's delays in being able to transfer funds from their account would affect gains payable (interest).
"Please be advised that the delay will affect all payments, whether encashments, gains, closures etc. We are in touch with Olint and as soon as the situation changes and they remit funds to us, we will advise you. Again, we thank you for your understanding in this challenging period," Wealthbuilder Club said.
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These "Investment Clubs" are always being "owned" by one or two or a few persons?
Isn't the very idea of an investment club based on joint ownership? Ownership interest and or liability or risk being directly proportional to amount invested?
Appears I have got the wrong idea...concept?
Help?
...last question! - Is Tony Williamson's investment club, "Wealthbuilder" merely and investor in the investment club "Olint"?...an investment club existing by being an investor in an investmetn club?...sole investment activity being an investor in that other investment club?
Monday, March 03, 2008
An apparent run on David Smith's Olint investment club has led to "severe delays" in members accessing their funds, according to alternative investment club, Wealthbuilder in a February 25, 2008 circular to its members.
Wealthbuilder which is owned by Tony Williamson, said it had been informed by Olint that because of "excessive encashment demands" over the past few months, the main account of their broker "has come under the extreme scrutiny of their bankers, Wachovia" in the United States.
"The bank is conducting due diligence on the account and this has caused significant delays in money transfers. Olint is now working on an interim process with a view to ensuring dependable encashment delivery dates," the club said. "As soon as this is finalised we will be communicating with you."
However, the Wealthbuilder Club warned members with funds in Olint that "until the situation changes, requests for encashments through Olint may be severely delayed as a result of the above-mentioned position... As soon as the situation with OLINT changes, the process will be expedited."
In a follow-up circular, the club noted a number of persons had been inquiring whether Olint's delays in being able to transfer funds from their account would affect gains payable (interest).
"Please be advised that the delay will affect all payments, whether encashments, gains, closures etc. We are in touch with Olint and as soon as the situation changes and they remit funds to us, we will advise you. Again, we thank you for your understanding in this challenging period," Wealthbuilder Club said.
----------
These "Investment Clubs" are always being "owned" by one or two or a few persons?
Isn't the very idea of an investment club based on joint ownership? Ownership interest and or liability or risk being directly proportional to amount invested?
Appears I have got the wrong idea...concept?
Help?
...last question! - Is Tony Williamson's investment club, "Wealthbuilder" merely and investor in the investment club "Olint"?...an investment club existing by being an investor in an investmetn club?...sole investment activity being an investor in that other investment club?
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