Michael Abrahams | I am staying with Barita

Over the past two weeks, I have been closely following articles in the press pertaining to the Cornerstone Group and Barita Investments Limited. I am no financial expert, but the stories I read piqued my interest for several reasons.

First, I have been investing with Barita for over two decades. Second, the recent debacle at other financial houses such as Stocks and Securities Limited (SSL), where investors lost significant amounts of money, and incidents of fraud at other institutions have made me more vigilant with my investments. I have worked too long and too hard to lose whatever I may have accumulated.

Third, I am acquainted with two major players in the ongoing saga: Rita Humphries-Lewin and Paul Simpson. I met Mrs Humphries-Lewin, the founder of Barita, several years ago when I was invited to perform a comedy set at a private function at her house. I was pleasantly surprised to discover that she was a huge fan of mine. The admiration and respect were mutual. More recently, I met Paul Simpson, the founder of Cornerstone. Interestingly, I did not know his prominence when we met initially, yet our conversations spanned diverse topics, none of which had to do with finance. Months later, when I learned of his stature in the financial sector, my positive perception of him remained unchanged.

The crux of the present controversy is this. Cornerstone Financial Holdings acquired 75 per cent of the ordinary shares of Barita in August 2018 and became the majority shareholder.

Another share transaction (the subject of the matter) was agreed, at the end of April 2021, and in June 2021. A month or so later the substantive documents were agreed. The transaction culminated in September 2021. However, one of Mrs Humphries-Lewin’s nieces is alleging she had dementia during the transaction process and is accusing Cornerstone of deception and coercion. The Cornerstone team is denying these allegations and has filed court documents to put to rest what they say are baseless claims, as at no time did they see signs of dementia or were told that Mrs Humphries-Lewin was suffering from the condition during the transaction. The family is also alleging that Mrs Humphries-Lewin was not given a fair value estimate of shares of the Cornerstone companies.

SEVERAL QUESTIONS

While reading the various articles, several questions have come to the fore. For example, what motivated Cornerstone to escalate the transaction concerning the sale of Barita Investments Limited to the Supreme Court for resolution? While this action involves a certain degree of risk on their part, Chairman Mark Myers’ statement, parts of which were published in the Jamaica Observer on August 9, indicates that this decision was taken proactively. According to his statement, “Cornerstone is seeking to defend and protect its business and reputation by asking the Supreme Court to rule on several matters, including the legality and enforceability of certain documents entered into between CUHJL (Cornerstone United Holdings Jamaica Limited) and Mrs Rita Humphries-Lewin with respect to a transaction, the subject of these baseless allegations.”

Additionally, there is the perplexing matter of a US$20-million demand allegedly made by Rita’s niece. It raises questions about her intentions, especially if she believes that Cornerstone wrongfully took advantage of her aunt. Further, the Sunday Gleaner article on August 13, in writing about this issue, stated that Karl Lewin, Rita’s husband, is requesting guardianship for himself and two nephews for her. This shift in dynamics prompts questions. Why not the niece, who has been prominently featured in the media for weeks? What led to the inclusion of nephews who were not previously mentioned in prior newspaper coverage?

Then there is Mr Lewin. As her husband and financial adviser, I find it puzzling that if there were any indications or suspicions of his wife’s early stages of dementia, especially while she was involved in a significant financial transaction, why this information was not conveyed to the supposed buyers. This was expressed in previous articles, and I do not recall it being refuted by her niece. Further, why did he participate as a witness and sign those documents under such circumstances over the span of several months?

ADDITIONAL INQUIRY

An additional inquiry arises from mentioning long-standing adviser Sonia Owens’s affidavit, in the Sunday Gleaner article on August 6. The question lingers, why would Ms Owens jeopardise her esteemed reputation by asserting that she observed no signs of dementia in Rita? Her significant stature within the financial sector and her 30-year association with Mrs Humphries-Lewin make this a pertinent question, as she indicated that she introduced the transaction to Rita.

I also wonder if the portrayal of the relationship of Mrs Humphries-Lewin with her family is accurate. After all, it would seem logical for her to designate her husband and nieces, active in the financial sector, as business inheritors. Why did she sell the business to Simpson and not her niece?

Also, is there a broader scheme aimed at undermining the leadership at Cornerstone, financially successful individuals who were not born into money and are not members of any of Jamaica’s ‘big’ families? Could there be an element of class dynamics influencing this situation? I do not subscribe to conspiracy theories. However, having lived in Jamaica for more than five decades, I have witnessed firsthand the astonishing sway held by a privileged minority. In such a context, one must acknowledge that this might be a concealed reality.

There is likely more to the story than what is reported. The court will do its job. In the meantime, will I continue to invest with Barita Investments Limited? Most definitely. Unlike several other financial institutions that have had well-documented incidents of fraud, I have never seen such an issue with Barita. The company has always been transparent, and the staff attentive and responsive, and they have never given me bad advice. I am wary of the accusations made against Simpson and confidently stand with him.

Michael Abrahams is an obstetrician and gynaecologist, social commentator and human-rights advocate. Send feedback to columns@gleanerjm.com and michabe_1999@hotmail.com, or follow him on X @mikeyabrahams.