The family of Rita Humpries-Lewin had a change of heart and mind.

The Court appointed committee to manage the affairs of Rita Humphries-Lewin, the founder of Jamaican investment house Barita Investment, is no longer holding to the allegation that Paul Simpson, Jason Chambers and the Cornerstone Group of companies deployed sophistry to acquire her companies at terms she did not agree to. The Court appointed committee is made up of three family members of Rita Humphries-Lewin, including Karl Lewin.

Thus comes to an end a saga which could have sullied the reputation of the fast-growing investment house, The Cornerstone Group. Both Simpson and Chambers will feel vindicated and no doubt want to see the back of this pitiful episode.

Last year founder and CEO of Cornerstone Paul Simpson and Chief Investment Officer Jason Chambers were accused of fraud and deceit, taking advantage of a demented Rita Humphries-Lewin in the selling and acquisition of shares concerning both Cornerstone and Barita.

Both Simpson and Chambers have vehemently denied the allegation insisting the sale was legally justified, valid and enforceable. Their reputations were maligned and what they managed to build was discredited. They were made to look like hucksters. 

Deborah Ann Mordecai-Edwards insisted that her aunt Rita Humphries-Lewin had the wool pulled over her eyes and was taken advantage of.

In a gesture of goodwill, Cornerstone made a private offer to Humphries-Lewin for her to acquire 1.4 million Cornerstone shares at US$10.80 per share bringing that to US$15 million-a nice little nest egg.

In reference to acquiring a stake in Cornerstone with the sale of her shares in Barita, Humphries-Lewin wrote: “Further, I hereby confirm and advise that I fully understand and appreciate the nature of this authorisation and have had the opportunity to or have voluntarily agreed to waive my right to seek, and be independently advised in respect of the effect and implications of this authorisation.”

The following year from this letter, written in September 2021, Mordecai-Edwards became indignant, insisting that the Bank of Jamaica investigate her aunt’s dealings with Cornerstone. She had the Financial Investigation Division (FID) called in. 

The way she saw it, the deal “involved some level of deception, coercion and/or fraud of Humphries-Lewin”.

Such a damming accusation negatively impacted the reputations of two young men who had made a significant mark on the Jamaican financial sector. Cornerstone had to take legal action against a major newspaper over unsubstantiated claims.

Since the acquisition of Barita by Cornerstone, the company has gone on to have one of the best market capitalisations on the Jamaica Stock Exchange (currently at J$88 billion). In 2019 Barita raised $5.2 billion through a rights issue. Two years later, it was reporting profits of $4 billion.

For the nine-month period of financial year 2024, Barita reported net operating revenue of $7 billion generating a net profit of $2.9 billion. Today its share price stands at $73.03. Barita has gone on to do well since Paul Simpson and Cornerstone acquired shares back in 2018.

In response to Mordecai-Edwards claims, Cornerstone put out a statement which in part read: “In this era of misinformation, one should note that the Cornerstone Group’s proactive stance in refuting what it calls baseless allegations and seeking judicial intervention signals its thought process. This underscores their commitment to upholding their business integrity and reputation.”

What must be stressed here is that senior members of the Cornerstone Group’s personal and professional reputations were maligned with no evidence to substantiate what turned out to be baseless claims.  Financial sector companies survive on the oxygen of confidence and spurious claims could have a deleterious impact on their operations.

Rita Humphries-Lewin’s representatives have put out a fulsome statement withdrawing the allegations and expressing regret for harm caused.

“It reads: “The Committee of Management of Rita Humphries-Lewin appointed by court order made on July 11, 2023 in Claim No. SU2023 FD 02220, have received and considered further information and documentation now provided to us concerning certain transactions involving the sale of Mrs Humphries-Lewin’s shares in Barita Investments Limited and the related purchase of shares in Cornerstone United Holdings Jamaica Limited and Cornerstone Financial Holdings Limited (“the Cornerstone Companies”). 

“In light of the further information and documentation and having consulted with and taken advice from Attorneys-at-Law, and in the interest of justice, the Committee withdraws all allegations and imputations of misconduct and wrongdoing against the Cornerstone Companies and their officers, Mr Paul Simpson and Mr Jason Chambers. 

“We appreciate that certain complaints would have called into question their professional characters, integrity and judgment and may have included inflammatory statements about them, and that it may have raised concerns on the part of the relevant regulators. 

“We have agreed to discontinue the Counterclaim filed in Claim No. SU 2023 CD 00256 against Barita Investments Limited, the Cornerstone Companies and their subsidiaries and especially their officers, Mr Paul Simpson and Mr Jason Chambers.

“We sincerely regret any harm that may have been caused to the Cornerstone Companies, Barita, their subsidiaries and their officers, especially Messrs. Simpson and Chambers, the chairman of the Companies and their families. “

A leading Jamaican business personality speaking with Our Today said: “Paul Simpson and the Cornerstone team are vindicated. This sorry affair was allowed to go on far too long and could have caused irreparable harm to two young men who have been outstanding for Jamaica’s financial sector.

It now seems fitting that Paul Simpson received a National Award. For what he endured here he deserves one. The newspaper must now publish a huge apology on its front page. This was terrible journalism from a media house that is losing its way. It should be held accountable.”