Bermuda investment firm at the center of fraudulent schemes, claims SEC

Friday, January 7, 2005

MIAMI, USA: The U. S. Securities & Exchange Commission (SEC) has alleged that Bermuda-based investment firm Lines Overseas Management and its two most senior officers "have been at the epicenter of at least two suspected fraudulent schemes", KYC News reports.

Furthermore, LOM and brothers Scott and Brian Lines have done "everything possible to keep the SEC from getting to the bottom of it", claimed SEC attorney Michael Lowman at a US court hearing.

According to KYC News, Lowman described LOM as "a company whose very business model is to market a cloak of secrecy to its customers to hide their activities behind from agencies like the SEC and other foreign regulators". While confirming that the firm has turned over some documents to the SEC, he said it has withheld others that the Commission suspects contain incriminating evidence.

LOM and Lines, on the other hand, claim they have co-operated with SEC investigations into alleged securities fraud as much as the laws of Bermuda, the Bahamas and the Cayman Islands will allow them and, in any event, the U. S. authorities have no jurisdiction over them.

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