Durrant Pate/ Contributor

Finance and Public Service Minister Dr Nigel Clarke has disclosed that investors in the failed investment and brokerage company, Stocks and Securities Limited (SSL), has got back approximately J$15.37 billion of local equity and fixed income securities.

These were made to 1,230 client accounts and transferred to accounts specified by these clients. In giving an update today on the transfer of clients’ funds, Clarke reported that cash amounting to J$665 million for 338 clients has been paid over.

Therefore, a total of J$16.035 billion (or approximately 70%), Jamaican-dollar denominated assets held in SSL’s off-balance sheet portfolio, have now been transferred to clients. Jamaican-dollar denominated assets include Jamaican equity and fixed-income securities and Jamaican dollar cash in the company, which was taken over by the government over a year ago after being rocked by a multibillion-dollar fraud.

At the time the fraud came to public attention, SSL had approximately J$30 billion of client assets as part of SSL’s off-balance sheet portfolio.

Temporary manager in talks with Trust Company

In its news release, the finance ministry stated that “for the remaining Jamaican-dollar securities, totalling $7.6 billion in value, the temporary manager is pursuing an agreement with a trust company for the en bloc transfer of these remaining Jamaican dollar assets which will be held by the trust company in custody for clients. More details will be provided once this agreement is finalised.”

SSL continues to process requests to transfer available cash balances. Clients are, therefore, required to submit their request including payment details to the service team. Regarding the transfer of the proceeds of international securities, the finance minister states that prior to April 11, 2024, the portfolio of international equity, fixed income and other securities, held by SSL on behalf of clients, totalled approximately US$32.8 million, disclosing that as at April 11, 2024, 98% of this international portfolio had been liquidated.

In relation to these international securities Clarke, in a prepared statement sent to the media, indicated thar once accounts have been reconciled, funds will be remitted directly to clients based on their instructions. He said the temporary manager is encouraging clients to indicate their preferred payment currency and provide banking details, emphasising that payments will only be made to account holders and third-party transactions will not be executed.

No recovery on 200 fleeced accounts

The finance minister’s prepared statement highlighted that “none of the 200 accounts reportedly affected by the SSL fraud have recovered any part of what was lost due to the fraud. Any recovery could only come by way of identification and pursuit of the proceeds of the fraud in accordance with Jamaica’s Proceeds of Crime Act (POCA)”.

He notes that while the tracing of fraudulently obtained assets can begin before the conclusion of court proceedings in the criminal matter, the “benefit investigation”, which is integral to the forfeiture and recovery process, can only start after criminal convictions are obtained in connection with the fraud. However, civil proceedings, are open to aggrieved parties and can be started at any time.

Clarke says the agencies and entities involved in the SSL matter will continue to independently provide updates.

“With the benefit of this report, their own investigations, and through collaboration with other law enforcement agencies, the FID (Financial Investigation Division) has publicly reported that a file was submitted to the Office of the Director of Public Prosecutions for the consideration of criminal charges against individuals linked to the SSL network of companies and/or the companies pursuant to the Proceeds of Crime Act, Larceny Act and financial sector legislations, “ the finance minister articulated in his statement.

In the meantime, he reports that SSL’s staff complement has been reduced to eight full-time and three part-time individuals, from 22 full-time individuals as at September 2023.