Police investigating money laundering and drug trafficking have raided the offices of a Costa Rica-based money exchange operated by Luis Enrique Villalobos.

The action has led to financial uncertainty for hundreds of foreigners who have collectively invested millions of dollars in a long-running high yield investment scheme operated by Villalobos and his brother, Oswaldo, who are known locally as 'The Brothers'.

The raid in Costa Rica was part part of an international investigation into money exchange firm Ofinter S. A. which is being overseen by the Royal Canadian Mounted Police, who announced details of the action at a press conference in Ontario, Canada on Friday, July 5, 2002.

Simultaneous raids were carried out in Costa Rica, St. Vincent & the Grenadines, Trinidad & Tobago, St. Lucia, Panama and Colombia.

In Costa Rica, police seized approximately $250,000 in cash and many documents from the offices of Ofinter S. A. and have frozen bank accounts. The offices have been sealed by police tape.

In the entire international operation, known as 'Operation Oilcrew' and started six months ago, six Canadians have been arrested and police seized 590 kg of cocaine in Canada, which has an estimated street value of US$91 million.

The names of those arrested are: Richard Rivers, 40; Norman Denault, 40; Luc St. Onge, 44; Sandra St. Onge, 47; Julien Loiselle, 36; and Richard Thibault, 45.

Ofinter S. A. is operated primarily by Luis Enrique Villalobos who, along with his brother, Oswaldo, also run a high yield investment program which purports to pay participants a return of three per cent per month. The scheme has been going on for many years and was promoted by word of mouth among Costa Rica's large expatriate community, which consists largely of North American retirees.

The Villalobos brothers have achieved cult-like status among their clients, many of whom now stand to lose their life savings if the enterprise collapses as a result of the police action.

OffshoreAlert has been investigating the activities of the businessmen for several months and will publish a comprehensive report on their affairs in the July 31, 2002 edition of the newsletter.

Despite the action taken against their business, there is no indication at this time that any charges have been brought against either of the Villalobos brothers.

Meanwhile, the RCMP also announced that two residents of the Turks & Caicos Islands - Michael Witt, 45, and his partner, Tina Grenier, 41 - have  been arrested and charged with various narcotics, money laundering and possession of crime offenses and their US$1 million property restrained in an operation codenamed 'Oilsheik'.

Their arrest is not directly connected with the investigation into Ofinter S. A., although there was some cross-over with that inquiry, said an RCMP spokesman.

The investigation against Witt and Grenier began after the seizure in July, 1999 in Kingston, Ontario of 1,000 kg of marijuana oil with a street value of US$13.1 million.

Commenting on the two operations, RCMP Chief Superintendent John MacLaughlan said: "The successes we announced today demonstrate how the new international proceeds of crime legislation has given police a more forceful tool to fight organized crime in a worldwide arena."

NOTE: The Michael Witt arrested in TCI is not the Michael Witt who is an engineer and married to Mikki Witt, who are the developers of the Blue Horizon Resort. This Mr. Witt is no relation to the Michael Witt who has been arrested and has absolutely nothing to do with the investigation in any way.