Finance Minister Dr. Nigel Clarke has expressed his “shock” at the alleged multibillion-dollar fraud that has been uncovered at the investment firm, Stocks and Securities Limited (SSL).
“I am in shock, and feel a profound level of anger and disgust, at the alarming and evil fraud that has allegedly been committed,” Clarke said in a statement.
Last week, SSL disclosed that several of its clients, including Jamaican sprint legend, Usain Bolt, had been fleeced of millions of dollars in local and foreign currencies given to the firm to invest.
Bolt has indicated through his lawyer that he had a balance of US$12.7 million at SSL as at October 31, 2022, but that figure declined to US$12,000 on January 11.
The attorneys representing Bolt want SSL to return the track star’s US$12 million in investments, in record time, or face a huge lawsuit”
The law firm Frater, Ennis & Gordon has given SSL ten days to furnish the money Bolt invested ten years ago
“While not receiving instructions from Bolt to proceed against the FSC, attorney-at-law Linton Gordon said the regulator failed to carry out its responsibilities and duties in accordance with Section 6 of the Financial Services Commission Act,” the paper added.
The Financial Services Commission (FSC), which regulates investment houses, has since taken temporary management of SSL. It has also appointed a special auditor for the firm.
In his statement, Nigel Clarke defended the local financial sector, saying “it is tempting to doubt our financial institutions but I would ask that we don’t paint an entire hard working industry with the brush of a few very dishonest individuals.
“Jamaica is the leading financial center in the English-speaking Caribbean and we will do everything in our power to protect Jamaica’s position in this regard,” Clarke added.
The FSC has also sought to reassure investors that the alleged fraud at SSL is not an indication that the sector is not safe.
The Jamaica Securities Dealers Association (JSDA) also says it is deeply concerned about the situation noting that it has implications for reputational risks and confidence erosion.
The JSDA said while it cannot speak on cases under investigation in order not to prejudice the process and outcome, it said it is committed to a thorough investigation and full accountability for all perpetrators of fraud.
“As businesses, we are mindful that fraud is a reality in both the local and global financial industry,” the JSDA said in a statement.
“To mitigate against fraud, our institutions implement various detection and prevention mechanisms, which require constant evaluation and improvement as new and more sophisticated fraud schemes continue to emerge.”
It said its members will work collectively and independently to ensure that all customers are fully apprised of measures that are at their disposal to do personal checks and balances.
“We are committed to enhancing our internal and industry controls, educating our clients, and improving our service through the consistent use of best practices and systems that detect and prevent gaps, ensuring the safety of our clients and business.
“Our customers have entrusted us as custodians of their investments, and this is a responsibility we do not take lightly. As such, we commit to full transparency as we identify and implement opportunities for constant improvements.”
CMC/
