Prime Trust and CoinZoom- companies that trade currency and hold non-cash assets such as bitcoins – have cancelled their contracts with Cuban National Yuri Garcia-Dominguez and his wife, Ateeka Ishmael, who are being investigated by local authorities for money laundering after they were busted operating a pyramid scheme and defrauding persons of millions of dollars in Guyana.
This was revealed by the couple’s lawyer, Dexter Todd, who during an interview with INews on Thursday, noted that the cancellation of the contracts makes repayments to investors even more risky as they stand the chance of losing their money.
Together, Garcia-Dominguez and his wife are facing 70-plus charges for obtaining monies by false pretence from some 17,000 people. They are said to have obtained over $200 million. On October 12, 2020, the couple began reimbursing persons who had invested in their company, Accelerated Capital Firm Incorporated (ACFI).
However, the refunds came to an unexpected halt a few days later after ranks from the Special Organized Crime Unit (SOCU) raided their home at Coldingen, East Coast Demerara and seized several pieces of equipment they claimed were vital in processing the refund transactions. Only 27 persons have been refunded to date.
The ranks had a warrant to search and seize monies, devices, and financial documents that would assist in their money-laundering investigations. But no monies were found at the couple’s home. Instead, Police ranks seized several borrowed computers, cellphones and personal documents, including birth, marriage and Caribbean Secondary Education Certificate (CSEC) certificates.
During a press conference on October 15, Todd had said, “The effect of the [search] is that the company is now not in a position to continue any forms of repayments to their clients. So those persons who have invested, they will now have to hold on until this matter is cleared up whether it be through the civil court or further interventions with the Police department. And when those items are returned, then they [his clients] will be in a position to continue the payments to the thousands of investors who are requiring their monies. When I say the materials are gone, I mean the phones, the laptops… the codes to withdraw the bitcoins and to transfer the bitcoins into dollars.”
According to Todd, ever since the search, the police have not made contact with his clients.
He explained that due to the magnitude of the allegations levelled against his clients, the international companies holding the bitcoins have begun cancelling his clients’ contracts.
“Therefore, there will be a situation in which you have bitcoins and noting to convert them to US dollars,” the lawyer pointed out.
The lawyer said that as a result of this, persons who have invested in ACFI may lose their monies. On this note, the lawyer said that he is pleading with Attorney General, Anil Nandlall; Crime Chief, Wendell Blanhum; SOCU and the Financial Intelligent Unit (FIU) to cooperate with his clients to ensure that all investors are repaid.
“We have to meet as a collaborative team on the way forward. They would have to cooperate in allowing the bitcoins to be converted. No bank in Guyana takes bitcoins and gave you cash.”
According to Todd, the prices of bitcoins fluctuate and the longer they are being held up means that his clients have no control over the market value. Todd indicated that he has since written to the Attorney General requesting a meeting on the way forward.
He added that the Attorney General should be in receipt of the letter by today. The lawyer said that similar letters will be dispatched to SOCU, FIU and the Crime Chief.
On behalf of his clients, Todd has filed judicial review proceedings in the High Court, asking that all charges and investigations against them be discontinued immediately. The couple has asked the High Court to order the Director of public Prosecutions (DPP) to discontinue all charges against them. They are also asking the court to order the police to cease all investigations against them.
The case comes up for a case management conference on Tuesday, November 10, 2020 before acting Chief Justice Roxane George. In the meantime, the couple has been released on over $30 million bail with instructions to lodge their passports and report to the Criminal Investigation Department (CID) Headquarters.
The couple has seized operations in Guyana after failing to obtain a license from the Guyana Securities Council.
