Michael Creft

Regulators don't come much more corrupt and shameless than Michael Creft, who left his position as Economic Research Analyst in the Department of Highways with the Manitoba provincial government in Canada to become Grenada’s offshore banking regulator in the late 1990s. Under his watch, Grenada licensed dozens of offshore banks, virtually all of which were overtly fraudulent. Two weeks after OffshoreAlert exposed the First International Bank of Grenada, which took in more than $200 million from victims by offering “guaranteed” annual interest of 250%, Creft faxed us a letter in which he defended the bank. Remarkably, the automatically-generated header and footer on each of the three pages of the fax showed that it had been sent from FIBG’s own fax machine. He went one step further a few weeks later when he provided an affidavit “under penalty of perjury” that was attached to FIBG’s libel complaint against OffshoreAlert at federal court in Florida in which he testified that FIBG “has broken no Grenadian laws”, that he had “never received any complaints”, and there was “no evidence of wrong-doing” or even “suspicious circumstances” regarding the bank. When five of FIBG’s principals were later criminally charged with fraud and money laundering in the US, Creft admitted to prosecutors that he had committed perjury in the libel action and that he, Grenada’s Prime Minister, and others had received bribes. “On February 23, 1999, Creft submitted an affidavit in United States District Court in connection with a libel suit filed by First Bank against the journalist,” stated Assistant U.S. Attorney Claire Fay in a sentencing memorandum. “Creft admitted the affidavit was false in that it stated that there had been no complaints against the Bank and that it was in full compliance with the law. He admitted that the money he received … influenced him to sign the false affidavit.”
Timeline
fibg-v-offshorealert
25

February

1999

First International Bank of Grenada Ltd. et al v. David Marchant et al: Libel Complaint

Libel Complaint in First International Bank of Grenada Ltd., of Grenada; International Depositors' Reinsurance Corporation, Ltd., doing business as IDIC, of Nevis, and World Investors' Stock Exchange, of Grenada v. David Marchant and Offshore Business News & Research, Inc. at the U. S. District Court for the Southern District of Florida.
26

February

1999

Grenada scam bank offers annual interest of 250 per cent

Offshore Alert's story about the banking/insurance scam that appeared in last month's edition of the newsletter has created quite a stir in the Caribbean. Several newspapers in the region followed up on the scandal, including those in Nevis, St. Vincent and Bermuda, and we received requests for assistance from the Royal Canadian Mounted Police and the the FBI.
04

March

1999

First International Bank of Grenada et al v. David Marchant et al: Emergency Motion for Preliminary Injunction

Emergency Motion for Preliminary Injunction in First International Bank of Grenada Ltd., of Grenada; International Depositors' Reinsurance Corporation Ltd., doing business as IDIC, of Nevis, and World Investors' Stock Exchange Ltd., of Grenada v. David Marchant and Offshore Business News & Research, Inc. at the U. S. District Court for the Southern District of Florida.
08

March

1999

First International Bank of Grenada Ltd. et al v. David Marchant et al: Amended Emergency Motion for Preliminary Injunction

Amended Emergency Motion for Preliminary Injunction in First International Bank of Grenada Ltd., International Depositors' Reinsurance Corporation Ltd., doing business as IDIC; and World Investors' Stock Exchange v. David Marchant and Offshore Business News & Research, Inc. at the U. S. District Court for the Southern District of Florida.
31

March

1999

Grenada bank scam: Injunction bid against Offshore Alert fails

The First International Bank of Grenada, the International Deposit Insurance Corporation and the World Investors Stock Exchange this month failed in their bid to obtain a court injunction preventing Offshore Alert from continuing to report on their fraudulent activities.Attorneys representing these entities filed hundreds of pages of documents at the U. S. District Court for the Southern District of Florida in an effort to obtain an emergency injunction preventing Offshore Alert from continuing to report on their dubious activities.
30

April

1999

Grenada asks FBI to investigate offshore bank

Grenada began to come to grips this month with a financial scandal that is threatening to make the island the laughing stock of the offshore world. Three months after Offshore Alert exposed it as a fraud, the First International Bank of Grenada appears to be on the verge of being closed down by the local government.
keith-mitchell
31

August

1999

Grenada Prime Minister clears FIBG of illegal acts

The massive financial scam being committed in Grenada by Canadian and American crooks has reached new levels of farce after the island's government announced that it had investigated - and cleared - the First International Bank of Grenada of any wrongdoing. Grenadian Prime Minister Keith Mitchell gave the bank a clean bill of health at a press conference held on July 23 and attended by local journalists.
31

December

1999

IDIC moves to Grenada after being closed down in two jurisdictions

Grenada regulators have allowed the sham insurer known as IDIC to incorporate on the island after regulators in Nevis and Dominica closed down the company, we can disclose. IDIC was closed down by Nevis regulators on January 27, 1999 and, the following month, was shut down in Dominica, where it had moved.
31

December

1999

OffshoreAlert Awards For 1999

Annual OffshoreAlert Awards for: Worst Regulator, Worst Regulated Jurisdictions, Lie of the Year, Coward of the Year, Crooks of the Year, Jurisdiction in Most Need of a PR Make-Over, Most Small-Minded Decision, Most Arrogant Jurisdiction, Most Stupid Comments, Here Today, Gone Tomorrow Award, and Most Responsible Regulators.
31

January

2000

Latest on massive Grenada banking fraud

Offshore Alert can this month reveal further disturbing details about the massive financial fraud that is being committed on the island of Grenada in what appears to be a joint effort between the island's government and the private sector. What is currently taking place in Grenada mirrors what happened in Montserrat in the late 1980s when approximately 300 'paper' banks established with phantom capital defrauded foreign clients of tens of millions of dollars before eventually being closed down by the UK police in 1989/90.
29

February

2000

FIBG reports fictitious net income of $60 billion

The founding chairman of the First International Bank of Grenada has informed Grenada's chief offshore regulator, Michael Creft, that FIBG has made a net income of $60 billion in its first two years in business. The astonishing claim is made in a rambling, 26-page letter sent by Van A. Brink (a.k.a. Gilbert Allen Ziegler) to Creft on December 23, 1999 in an effort to assuage the regulator's concerns about the bank.
29

February

2000

Insider Talking: February 29, 2000

Keith King and the Transglobal Investment Fund, Antigua PM Lester Bird seeks to have financial advisory lifted, Viktor Kozeny sued in the Bahamas, U. S. and Bermuda discuss new treaty, Quantum Trading offers suspiciously high returns, Mezzanine Capital in middle of pump and dump, and Michael Creft: From Manitoba Department of Highways employee to Grenada's chief offshore regulator
30

April

2000

Grenada regulator Michael Creft is ‘apparently corrupt’, says FIBG auditor

Grenada's Registrar of Offshore Financial Services, Michael Creft, was described last year as being "apparently corrupt" by the first accountant who attempted to audit the books of the First International Bank of Grenada. In a letter to Prime Minister Keith Mitchell, Lauriston Wilson wrote that Creft's actions relating to FIBG were "suspect and lead to the inescapable conclusion that he is apparently corrupt".
30

June

2000

More revelations about the great Grenada banking scandal

Just when you thought it couldn't get any worse, the great Grenada banking scandal reached new levels of farce this month.One bank is operating without a banking licence, another is capitalized by a painting and the First International Bank of Grenada was still open for business at the end of June. Open, that is, to accept deposits but not to pay interest to its depositors, many of whom have complained to the island's regulators that they have not received interest payments for several months.Even allowing for corruption and incompetence, the refusal of the Grenada government to close down FIBG has led to one of the most bizarre situations in the history of offshore banking.
31

August

2000

FIBG put into receivership, more amazing revelations from Grenada

After allowing tens of millions of dollars to disappear and the crooks to flee the island, Grenada's government finally took over the First International Bank of Grenada this month. Government accountant Garvey Louison was appointed Receiver of FIBG on August 1 and immediately started preparing to liquidate the bank and all of its sub-banks.
30

November

2000

Offshore criminal activity continues unabated in Grenada

Regulators in Grenada are continuing to allow banks belonging to the First International Bank of Grenada group to operate on the island despite FIBG's massive insolvency, we can reveal. The National Commercial Bank of St. Vincent, which is government-owned, is also continuing to provide banking services despite having its UK assets frozen recently over the FIBG fiasco.
30

June

2001

Insider Talking: June 30, 2001

The First International Bank of Grenada loaned $30,000 to the wife of Grenada's then chief regulator, Michael Creft, so that she could buy a car and another $50,000 to the then President of the Grenada Bar Association, Reynold Benjamin, according to a document sent to OffshoreAlert; Dean Cantrell and Marcel Deinnet snap up domains in names of countries in the Bermuda-Caribbean region, fraud complaint filed against 'offshore banker' Douglas Castle, 72-year-old convicted fraudster is back in business, SEC continues trend of failing to menaingfully punish accused fraudsters, First Ecom.com Inc. acquires half of First Ecommerce Data Services Ltd. that it did not already own, Antigua gaming outfit World Sports Exchange Ltd. sues County Savings Association over three checks that allegedly bounced, First American International Bank becomes latest offshore bank to be operated in Nevis without a license by Global Dominion Financial Services, and Latvia-based Paritate Bank appears to be in financial trouble.
04

July

2001

Incriminating FIBG documents

In the public interest, we have posted two new documents on our web-site about the First International Bank of Grenada, which can be downloaded from www.offshorebusiness.com/fibgpage.htm.   Both documents are emails that were sent last year, one from FIBG founder Van Brink to Tai Hastey on March 28, 2001 and the other from British barrister Lawrence Jones to Brink on June 8, 2000.
31

July

2001

Daniel Danker sent to prison for investment fraud

One of the principals of a now defunct Grenada-registered bank has been sentenced to five years and 11 months in prison in the United States.Daniel G. Danker, 53, was also fined $50,000 and ordered to pay restitution of more than $20 million at the U. S. District Court for the Southern District of Indiana on July 15, 2001.
08

July

2002

FIBG liquidator warns creditors to expect no dividend

In his Third Report dated June 1, 2002, the liquidator of the First International Bank of Grenada has again warned creditors that there may not be any dividend distribution.Marcus A. Wide, of PricewaterhouseCoopers, advised "there is a real and distinct possibility that there will be no distribution whatsoever made by the Liquidator to the FIBG depositors/creditors".
31

July

2002

FIBG stripped of assets just before collapse, says liquidator

First International Bank of Grenada founder Van Brink stripped $4.5 million of assets out of the bank not long before it went bust, according to its liquidator.In his third report to creditors dated June 1, 2002, Marcus A. Wide, of PricewaterhouseCoopers, reported that details of the asset transfers were contained "unsigned minutes from FIBG's June 2000 Board of Directors meeting".
30

April

2004

Grenada Prime Minister denies bribery allegation

Grenada Prime Minister Keith Mitchell has denied accepting $500,000 for appointing a United States fraudster to a diplomatic position.An allegation that Mitchell received a cash pay-off at Eric E. Resteiner's home in Switzerland in 2000 has been made by Resteiner's former Director of Security, Timothy Lee Bass, a U. S. national now residing in Illinois.
26

July

2005

Prison sentence for another Grenada banker

Yet another principal of a fraudulently-operated, Grenada-licensed offshore bank has received a prison-term for fraud in the United States.Carl H. Lane, of Atlanta, Georgia, was sentenced to 30 months in prison and ordered to pay restitution of $1.058 million at the U. S. District Court for the Northern District of Georgia on June 29, 2005.
10

February

2006

Ex-Grenada Diplomat pleads guilty to fraud charges

An American who is suspected of bribing the Prime Minister of Grenada for appointing him to a diplomatic position has pleaded guilty to unrelated fraud charges in the United States.Eric Resteiner, 46, pleaded guilty to five counts of wire fraud and two counts of mail fraud at a change of plea hearing that was held at the U. S. District Court for the District of Massachusetts on February 8, 2006. He is due to be sentenced on May 8. Under a plea agreement, the remaining 53 counts, including 18 regarding money laundering, which carry the harshest penalties, will be dismissed.
20

July

2006

Skirving and Regale plead guilty to conspiring to launder FIBG fraud proceeds

Two defendants face lengthy prison sentences after admitting their involvement in an investment fraud perpetrated by the First International Bank of Grenada.Robert Skirving and Rita Regale each pleaded guilty to one count of conspiracy to commit money laundering regarding FIBG's fraudulent proceeds at the U. S. District Court for the District of Oregon on July 19, 2006.
09

November

2006

Insider Talking: November 9, 2006

The cold reality of life behind bars has persuaded former offshore banker Paul Morgan Jones to start turning over his assets to the Receiver of Cash 4 Titles, which perpetrated one of the biggest Ponzi schemes in history, operating from
07

December

2006

Video of Grenada PM receiving ‘bribe’ surfaces in US, Grenada Gov’t refuses to request a copy

Grenada authorities have turned down the offer of a video tape showing their Prime Minister receiving a $500,000 cash ‘bribe' from investment fraudster Eric Resteiner, OffshoreAlert can reveal.They were notified more than 12 months ago by Resteiner's attorney, John Amabile, that a copy of the six-year-old tape still existed and that it could be obtained through a formal request for assistance to the authorities in the United States, where Resteiner is in custody awaiting sentencing for seven counts of mail and wire fraud to which he pleaded guilty earlier this year at the U. S. District Court for the District of Massachusetts.
22

August

2007

USA v. Rita Regale et al: USA’s Sentencing Memorandum

USA's Sentencing Memorandum in USA v. Rita L. Regale, Douglas C. Ferguson, Robert J. Skirving, and Laurent E. Barnabe at the U. S. District Court for the District of Oregon. Editor's Note: This document is notable for its reference to testimony by Grenada's former chief financial services regulator, Michael Creft, in which he acknowledged bribery and corruption.
michael-creft
10

September

2007

Offshore bank bribed regulators and Prime Minister, says ex-chief regulator

Grenada's former chief offshore regulator, Michael Creft, has admitted that the fraudulently operated First International Bank of Grenada bribed regulators and Government members, including Prime Minister Keith Mitchell. Creft has also acknowledged that he committed perjury in support of FIBG's failed