JSE, Cumax, FSC mum on the matter

Durrant Pate/Contributor 

As Our Today continues its expose of the bribery, extortion and fraud allegations bedevilling the Jamaica Stock Exchange (JSE) and Cumax Wealth Management, we can confirm that the Government of Jamaica (GOJ) has committed to investigating the claims by Florida-based Music Licensing Inc (MLI) and its principal, Jake P Noch. 

Having been made aware of the allegations through two correspondences from MLI — a small music rights firm with a big catalogue — and its American attorney, dated February 8 and 13, 2024, the GOJ is only now jumping into action.

The commitment to probe was made by the Ministry of Foreign Affairs and Foreign Trade and comes six months after the letter calling for the government’s intervention — and in the face of MLI threatening the JSE, Jamaica’s equities regulator, and Cumax with court action. 

At the same time, MLI is blaming the government, citing what it says is “the lack of state responsibility and the failure to protect our investment in Jamaica”.

In a letter dated August 5, 2024 to MLI’s attorney Davy Karkason, Esq, the ministry through its Permanent Secretary, Ambassador Sheila Sealy Monteith declared that the GOJ notes the concerns raised by MLI “on which the GOJ will now investigate and consult with national stakeholders”.

GOJ asking for further particulars

In her letter, Ambassador Sealy Monteith wrote, “To assist us in our consultations with national stakeholders, we request further information from your clients. In this regard, we note that you have stated that you are ‘prepared to provide further details on the claims, including evidence of the damages incurred and suggestions for possible resolution’. We therefore await the provision of these further details.”

When contacted, Noch told  Our Today that he and his attorney are now gathering the evidence for submission to the GOJ, as both parties are about to engage in negotiations as provided under Article IV of the United States and Jamaica Bilateral Investment Treaty (BIT).

MLI, a diversified holding company and fifth public performance rights organisation had petitioned the GOJ to engage in out-of-court negotiations regarding its claims of various improprieties, including attempted extortion for bribes, misappropriation of funds, fraudulent representations, wire fraud and mail fraud on the part of the JSE and Cumax.

No date has been set for the start of these negotiations with the GOJ awaiting the submission of the further particulars requested from MLI and the outcome of its probe before taking its seat at the bargaining table.

Millions of dollars in damages suffered

Prior to levelling the allegations, MLI, which trades under the ticker symbol SONG on the over-the-counter market in the United States, was seeking cross-listing on the JSE, contracting Cumax as its lead broker and arranger. However, the JSE cross-listing did not materialise with MLI claiming to have suffered millions of dollars in damages as a result.

Under the previously disclosed agreement, Cumax in furtherance of getting MLI cross-listed on the JSE was contracted to provide advisory services for nine months with an option to extend the agreement by mutual consent. MLI wanted to cross-list to enter the local publishing space by leveraging its listed capital to raise debt to fund acquisitions. 

Mum’s the word

Our Today can confirm that the Financial Services Commission (FSC) has received correspondences from MLI and Noch, setting out the allegations of attempted extortion for bribes, misappropriation of funds, fraudulent representations, wire fraud and mail fraud.

However, the financial regulator is not commenting on the matter at this time but acknowledges receipt of the correspondence from MLI.

As an investment and stock brokerage firm, Cumax is regulated by the FSC. We reached out to JSE Managing Director, Marlene Street Forrest, who opted not to speak on the matter. In fact, she responded to our text message to her telephone number saying, “We have nothing to say at this time.”

Our Today also reached out to Cumax CEO, Ian McNaughton by phone twice this week without getting a response even though his office advised us that the message was indeed delivered.