$300 Million"Ponzi" Scam in Court - A Cayman First
According to media reports, lastOctober, United States Authorities arrested Michael E. Gause (Gause)a Florida Resident, in connection with an alleged $300 million'ponzi' scheme. This is a swindle whereby slick operators use"Peter's money to pay Paul" according to one local lawyer.

It is alleged that Gause and an associate,Charles Richard Homa (Homa) are the perpetrators of a "Ponzi"scheme involving the purported financing by Investor/Lenders ofa car title pawn business conducted by various entities controlledby Homa and Gause, including C4T Management, Inc

Receiver for the assets Homa and Gause andvarious related entities is Phillip S. Stenger, of Stenger &Stenger, P.C., a law firm from Grand Rapids, Michigan. "CreditorsRights" is one of the stated area of practice in their corporateprofile.

Among Law firms representing various interestsin this landmark case - of which up-dates are posted on the internet- are the firms of Maples and Calder, Walkers, Hunters and Broadhurstand DaCosta. Petitions have been filed to appoint Jim Cleaverof the accounting firm of Ernst and Young along with Phillip Stengeras joint liquidators of the identified multi-million dollar Caymanassets of Homa and Gause, including C4T Management, Inc

It is alleged that a locally registeredBank may have played a role in the transfer of these funds, andthree of that bank's employees have been dismissed. Resident investorshave also lodged creditor claims.

This is an interesting case from the standpointthat it may be the first time that a United States Criminal caseis being argued in the Cayman Islands as a Civil procedure.

This case is so big and the creditor listso wide that it has attracted international media attention. AWeb page has been designated by Stenger & Stenger to keeptheir clients posted of developments. CAYMAN NET NEWS will bringits viewers further details of the liquidation and disposal ofthe assets in connection with this case as information becomesavailable.

Meanwhile, Cayman Browsers on the Internet, can also keep apprisedby logging on to "www.Cash4Titles.com"

Monetary AuthorityHead leaves office Abruptly

In what came as a shock to many to somemanagers involved in the Financial Industry, the head of the lessthan three-years old Monetary Authority left his post last Friday.A Press Release issued by Government Information Services (GIS)read:

"The Cayman Islands Government hasadvised that the Managing Director of the Cayman Islands MonetaryAuthority (CIMA), Mr. Neville Grant, left his post today. Friday17th March. The Government thanks him for his contribution.

General Manager, Mrs. Cindy Scotland, willhead the management of the Authority, pending the appointmentof a new manning director."

On reaching Mr. Grant the same afternoonthe release was received, he relied that he had "no comment"on this development.

The former head of CIMA was on contractwith the Government, and set to expire next June. It was learntthat in January of this year, he indicated that he would not berenewing his contract.

It has been reported that another seniormember of staff who is Caymanian, had previously resigned fromCIMA but was re-established in his post. He is now on three monthsleave, with a provision of indicating if he would be returningto his position at the end of the leave period.

Mr. Grant's departure is the second highprofile position to be abdicated in less than one year. The headof the Cayman Stock Exchange (CFX), Ms. Ann Nealon resigned herposition about a year ago to take up a position with the secondlargest Law firm on the island, Walkers. This led to a court hearinginitiated by CFX to stop the grant of a Work Permit to Ms. Nealon.

She was originally hired to tke charge ofthe Stock Exchange by its Chairman, Mr. Tony Travers, who headsup the London office of the largest Law firm in the Cayman Islands,Maples and Calder.

Further inquiries have confirmed that Ms.Nealon is now on the staff of Walkers.

News Watch-New Hospital

Dr. Steve Tomlinson's 'Chrissie TomlinsonMemorial Hospital' opens today for operation. A Grand Openingdate has not yet been set, as this 18-bed Private facility maytake a few weeks to ensure that all is sailing well.

The hospital boasts of some of the mostadvanced equipment in the Cayman Islands, which will allow patientsto undergo many tests only previously available in the UnitedStates and other metropolitan countries.

General contractors for the Hospital wereOlson Construction.

Cayman Airways regrouping

Following the departure of the PresidentCayman Airways (CAL) who resigned last week Thursday, the airline'smanagement staff are working excessive hours in an effort to bringabout some normalcy to the administrative and flight operations.

Mr. Mike Adam, a veteran with many yearsservice in the airline's management structure, has been appointedinterim President.

The National Flag Carriers efforts are impactedwith the task of trying to win back customers' confidence, whichhave waned tremendously following the haphazard schedules andcancellations which have been plaguing the airline in recent weeks.This has been brought on owing to the un-availability of the carrierto put their own equipment back into service, and have becomereliant on sub-service provided by other contract airlines.

Statements from the acting President, ofCAL Mr. Adam, and Cayman Airways Pilot Association may be issuedtoday, Monday the 20th of March.

Row in House- between Official Government Member and West Bay MLA
Refusal ofthe Grant of a Work Permit featured

Under the protective cloak of the Legislature,Mr. John Jefferson Jr., the Third Elected Member for the Districtof West Bay traded accusations with the Chief Secretary, Mr. JamesRyan, under whose Portfolio Immigration matters fall.

Mr. Ryan indicated that Mr. Jefferson'sanguish in connection with the refusal of a work permit was unjustifiedand his accusation that such permit was refused because of a conflictof interest by a Member of the Immigration Board was unfounded.

Further animosity was fueled, when Mr. Jeffersoncountered that his call for the Chief Secretary to resign, wasin connection with Mr. Ryan's handling of certain matters leadingup to and including the riot by prisoners at H. M. Northward Prisonin September of last year.

Published accounts of the correspondencebetween the Chief Secretary and the Chairman of the ImmigrationBoard, Ms. Sharon Roulstone, took place in a public forum suchas the House of Assembly and the media, may prompt others to nowcome forward with their own stories in connection with certainrulings by the Immigration and Trade and Business Licenses.

Now that the Chief Secretary and the Chairmanof the Immigration Board have come out in the open a allow tobe published correspondence dealing with the matter brought upin connection with Mr. Jefferson, this is indeed fodder that thesooner an ombudsman is appointed, the sooner there will be impartialityin dealing with complaints involving Government officials.

The Oxford Dictionary describes the roleof an Ombudsman as: "An official appointed to investigateindividuals' complaints about maladministration by public authorities."This post has been long incoming, and it is good that His Excellencythe Governor has exercised his Executive Authority with the announcementthat this post will be filled this year, thereby avoiding furtherdebate on its merit, which could cause it to fall aside as manyother efforts made to enact a bill of rights. The filling of thispost is timely, particularly in light of many issues which impactthe country - before and after the General Elections in November.

ImmigrationIssues Impacting the Economy

One travel business executive remarked recentlythat there is an obvious trend, whereby many of Cayman's partnerswho have been instrumental in the development of the local economyare making plans to either reduce or shut down their operationshere, because they see the "handwriting on the wall"regarding the issues surrounding the granting of Work Permits.

The Real Estate industry is also reelingfrom the recent dissonance created by rulings which affect theplans and security of tenure of investors - from overseas - aswell as those who have lived here for many years with hopes ofbeing welcomed to stay, and contributing to the economic socialand economic stability of the community. Prices of homes and apartmentsfor sale have begun to tumble down in the wake of an infinitesimalamount of sales compared to previous years. A reversal of thistrend could only be promulgated with a resurgence of investors'confidence.

Meanwhile, one large Corporate managementfirm confirmed that Companies registration were down overall lastyear, and while this year has started off quite well, he and hisassociates are waiting anxiously to see how the issues in regardto Immigration and other matters are resolved.

Cayman's InternetSurfers Welcome Free downloads from Cable & Wireless
One frequent user confirmed thathe will now be saving between $60 and $80 per month on his monthlybill which averages $225. "I would be happier though, ifthey will come up with a set fee for all unlimited uploads"he exclaimed.

He went on to say that Barbados now chargesless that $24 per month to their subscribers. And like many othere-commerce entrepreneurs working from home nowadays, he is hopingthat Cable and Wireless' next announcement around the middle ofApril will bring such good news.

As mentioned in an earlier report, withthe cyber space boom in e-commerce lurking to happen here in Cayman,Cable and Wireless is an all-important player - who can make thishappen.

To the Publisher:

Dear Sir:

Thanks for creating this website. As a Caymanianworking overseas this is the best way I've found that keeps meup-to-date with what's happening on the island.

As a Pilot for a major airline in the USthe articles really peak my interest ... keep it up. and thanksagain.

OLSON ANDERSON

Keep checking in with CAYMAN NET NEWS first ... for the most
up-to-date Cayman Islands news - and commentaries - as it happens...when it happens.

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