Terry McKolskey

The former General Manager of Lines Overseas Management (Cayman) has filed a civil complaint against an investment firm based in the Turks & Caicos Islands. Canadian national Terry McKolskey, who left Cayman in or around 1998 amid allegations of impropriety,

Shares of the parent company of Bermuda-based stockbroker Lines Overseas Management were listed for the first time on the Bermuda Stock Exchange on July 24.A statement that the shares had been approved for listing was made on July 20 without any prior public announcement that an application had been submitted.

As I flew out of Bermuda on June 10 after narrowly surviving an attempt by Donald Lines' attorney, Robin Potts, to have me put in prison for contempt of court for refusing to reveal my sources in relation to articles I wrote about Bermuda Fire & Marine Insurance, who should I bump into on the flight to Atlanta but one of Donald's sons, Brian Lines, who is the President of Lines Overseas Management, which has been on the receiving end of several unflattering articles in this newsletter; Some of the UK's leading attorneys have made Bermuda their home for the next several months as they work on two of the biggest civil trials in the island's history: The Bermuda Fire & Marine Insurance Company case and a trust dispute involving the Thyssen-Bornemisza family, which has a $2.7 billion fortune; What was it like sitting in front of Britain's finest while they debated for two days whether to lock me up for seven days for contempt of court? Not much fun, I can tell you; The lengths that crooks will go to in order to lend credibility to their scams knows no shame; and Beleaguered Stirling Cooke Brown Holdings Ltd. is laying off staff in Bermuda and is in the process of moving its Bermuda-based broking activities to London, we have been told.

A Canadian investor in the failed Star Capital Fund has criticized regulators in the Cayman Islands over their lack of interest in investigating apparent illegalities in the operation and liquidation of the mutual fund. Alan Hammaker, who lost US$20,000 in the fund, said his experience as a foreign investor in a Cayman mutual fund has left him disillusioned not only with the island but with the offshore world in general.

The Cayman Islands Monetary Authority has been asked to investigate a failed mutual fund that was run and promoted by the staff of Lines Overseas Management (Cayman) and administered by Alexandria Bancorp.A Canadian investor has made a written request for an inquiry on the grounds that a number of laws may have been broken during the operation and current liquidation of Star Capital Fund.

Share register of LOM (Holdings) Limited, as at October 28, 1998.

We devote a large portion of this month's Insider Talking to Lines Overseas Management, which is based in Bermuda and also has offices in the Cayman Islands and Guernsey, including a letter from one of the company's Cayman-based financial advisors that makes inaccurate claims and promotes illegal activity; We end this segment on LOM by revealing the contents of a letter written this month to a potential US client by Joe P. Montgomery, a financial advisor with LOM (Cayman), whose services as advertised by Montgomery would appear to be a money launderer's dream; The frequency with which Robert Pires, owner of stock broker/financial adviser Bermuda Investment Advisory Services, and members of his staff fall out, leading to staff departures, continues to occur at an alarming rate; We have reported in the past about John Deuss' courting of the Progressive Labour Party in the run up to this year's General Election; a relationship that has involved wining and dining PLP leader Jennifer Smith on his luxury schooner and paying off the mortgage of the PLP's party headquarters; The first of two lawsuits that are being brought against Cayman Minister of Land John McLean is due to be filed at the Grand Court of the Cayman Islands during September, not August, as we had previously expected; and The government of Nevis narrowly failed to take the island independent in a referendum held on August 10.