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Featured Fraudster - Duane McGaw (FREE)

September 16, 2015 by David Marchant

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This page is devoted to fraudsters who sue OffshoreAlert for libel after we have exposed them, thereby demonstrating they are stupid and delusional, as well as dishonest. Having their own permanent entry on a free section of our site so their families, friends, victims and others can see how ugly they are is a price they must pay for letting their emotions and ego override common sense.


 

Duane McGaw - Litigation Funding Fraudster

 

Duane McGaw was a principal of the onshore/offshore-based Argentum Capital Group, whose litigation funding scheme was exposed as a fraud by OffshoreAlert on February 18th, 2014, quickly causing its collapse.

Investors were offered double-digit annual "fixed returns" as high as 15%, with both returns and principal purportedly "protected" by insurance policies and other financial safety nets to ensure payment even if funded lawsuits were unsuccessful. They were shown charts indicating that all 20 asset classes issued from April, 2010 to July, 2013 had achieved substantial total returns, ranging from 27% in 27 months to 89% in two years.

It was all lies, however. None of the third-party lawsuits funded by the group had been successful prior to liquidation and purported insurance protecting against unsuccessful cases and guaranteeing investors' principal and fixed returns either did not exist or was placed with bogus insurers. In the absence of any profits, redemptions by investors must have come from other investors' money, meaning that Argentum Capital Group was perpetrating a Ponzi scheme. Everything exposed by OffshoreAlert when the scheme was in full swing was subsequently confirmed by liquidators Grant Thornton.

McGaw showed his contempt for investors by disappearing after the scam was exposed and failing to respond to "numerous" requests for information by the liquidators, who in their first report to creditors and investors on September 16th, 2014 accused McGaw of receiving at least £11 million from the scheme and possibly much more. In a remarkable display of arrogance and stupidity, given his potential liabilities, McGaw publicly resurfaced on July 6th, 2015, when a Vancouver-based food and culture magazine published an article about a new Japanese restaurant called 'Q Shi Q' that McGaw, as owner, was planning to open. OffshoreAlert blogged about this development on July 14th, 2015 and also tipped off liquidators that there was a potentially valuable asset just waiting to be seized on behalf of McGaw's many victims.

Despite the fact that foreign defamation judgments are unenforceable in the United States under The SPEECH Act, McGaw showed how easy it is to waste other people's money when he filed a meaningless defamation lawsuit against OffshoreAlert and its owner, David Marchant, at the Supreme Court of British Columbia on August 13th, 2015, alleging that claims he is a fraudster are 'false and malicious'. Either he's lying to the court or he's so delusional that he actually believes he didn't participate in a fraud. Neither would surprise us.
 
"As a result of the publication of the Defamatory Statements, Mr. McGaw has suffered and will continue to suffer serious damage to his reputation and business prospects," stated McGaw's attorney, David Wotherspoon, in the complaint. Let's hope so. That's sort of the point

As we told Wotherspoon: "If your client is embarrassed by visitors to OffshoreAlert's web-site knowing that he received millions of dollars by helping to swindle the elderly and others in a crude investment fraud, then he shouldn't have participated in it. Clearly, the truth hurts."

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Cayman Court Secrecy: A Huge Red Flag for Foreign Investors & Clients
David Marchant
As any fule kno, the biggest enemy of fraud, corruption, money laundering, and other forms of financial crime is transparency, while their best friend is secrecy. That's why the unprecedented mass sealing of cases that's taking place at the Financial Services Division of the Grand Court of the Cayman Islands is repugnant to anyone with a genuine concern for financial crime.