H.E. Capital,SA...US$500MIL CB Certificate purchase

[mondongo]

listindiario.com, hoy.com.do, DR1 News and others reported today that Canadian entrepreneurs' H.E. Capital, SA would invest US$500Million in Central Bank certificates. The newpapers report of "agreements" reached between the protagonists of H.E. Capital and the Mejia klan.

1. H.E. Capital,SA is NOT a Canadian company. Richard Smith is not a Canadian entrepreneur. From the H.E. Capital website:

"Head Office

Casa del Sol
MJ 19, Paseo Marino
Perla Marina
Sosua
Dominican Republic

Due to the unreliable nature of the postal service within the Dominican Republic, we maintain postal addresses in both the United States and in Canada. Mail sent to these addresses is forwarded to us by courier. However, we neither maintain offices, nor do we conduct business from these countries."


Pay special attention to the last sentence. This should answer all questions regarding the legitimacy of H.E. Capital: http://www.hecapital.com

MY TAKE: as I read the website and google'd a bit, I come away with the impression that H.E. Capital's clients' obtain their money is less than an upstanding manner. That would explain H.E. Capital's willingness to fork over all that cash to the thieves and thugs that make up Mejia's circle.

[ricktoronto]

This site still says the bond rating for the DR is B1 but it has been downgraded through B2 to now B3 (CC by S&P) . I wouldn't invest through any firm that did not have scrupulously up to date information on sugegsted investments. Actually anyone now recommending DR US$ bonds as other than as high-yield junk bonds is out to lunch.

[JimB]

H.E. Capital S.A. is an innovative financial services firm based on the diverse expertise of our professionals. We offer our global clientele specialized financial, stockbroking and management services, and structure their affairs to maximize security and privacy. The growing loss of privacy to government and others demands that investments be safe, properly managed and protected from prying eyes. Our aim is to increase and protect the wealth of our clients in today's increasingly complex marketplace. We do this by combining skillful trading in markets worldwide, creating advantageous financial structures, minimizing taxes and preserving their assets. From our location in the Dominican Republic, and with our strategic partners around the world, we provide an array of sophisticated services that our clients cannot find at home.

(emphasis mine)

Sure doesn't sound like a Canadian company to me!

[Robert]

Casa del Sol
MJ 19, Paseo Marino
Perla Marina
Sosua
Dominican Republic


I'll go take some photos of their offices on the weekend.
Perla Marina, now this should be fun

[Porfio_Rubirosa]

"The Dominican Republic has specific legislation concerning the laundering of assets derived from illicit drug trafficking, money laundering and other crimes. Thus, for the benefit of all our clients, we do adopt internationally accepted compliance procedures, although we also adhere to a policy of strict client confidentiality ... privacy and security are our highest concern." (emphasis added)

So "privacy and security" is the "highest concern" - higher than "compliance procedures", apparently.

Why do I feel like I'm watching a scene from The Godfather, Part II.

[Lurch]

This should be the death nail into the economy. IMF shall run, exchange rate will collapse (again) and the Paris Club shall giggle one more time.

[Hillbilly]

there is no way in the world that any sane investor would invest that much money in Central Bank certificates at 60% iterest.

My take is that this is laundered money from very obscure sources.

that is why they were in Hippo's office.. Setting up the "deal".....

I think the SEC, FCC and the FBI should be put on alert to this, if they haven't been already??? As wwell as the IAB, the World Bank and the IMF...

HB

[mondongo]

I have searched the web and found possible links to fraud and money laundering. Two of the 3 "investors" have a small internet paper trail that allows me to guess that this may be a money laundering scam. I wonder if (how deep) Mejia and Malkum are part of this potentially illegal maneuver.

[mondongo]

Keith King is one of the 3 "Canadian Investors" that Mejia tried to strike a deal with for the US$500Million. Take a look at this article headline from the Vancouver Sun:

http://www.kycnews.com/Press/2000/00-x13.htm


Richard Smith is anothe "investor". He is a director at Image Innovations. Check out their website and then check out their financials. Its a company that has never sold anything. He and King are associated with folks who have been indicted for pumping up penny stocks and using the company to launder drug money.

http://www.imageii.com

If the DR authorities did not know that they were dealing with internationally reputed money launderers, they know now.

[Porfio_Rubirosa]

I wonder if they handed out solid-gold Yankee hats at their meeting with Hippo. Again, Godfather Part II reference.