Court lifts injunction against SSL founder

The Supreme Court has lifted an injunction against founder and former director of investment firm Stocks and Securities Limited (SSL), Hugh Croskery, his lawyer Neco Pagon says.

The Financial Services Commission (FSC) has also been ordered to pay Croskery's legal costs.

The FSC had obtained the injunction on January 25 to block SSL's directors from dealing with the company's assets, more than a week after the company reported a multibillion-dollar fraud.

Croskery and several other directors were named as defendants in the case brought by the regulator. 

However, Croskery challenged the court order.

His attorneys King's Counsel Peter Champagnie and Pagon argued that Croskery was "unaware of any fraudulent activities" associated with SSL and "at all times had acted in good faith", a statement from Pagon said.

It added: "The attorneys further argued that Croskery had since resigned as a director and therefore the injunction was in essence redundant, notwithstanding his continued shareholdings in the company". 

Supreme Court judge, Stephanie Jackson Haisley, today lifted the injunction and ordered the FSC to pay Croskery's legal fees.

Directors Laurence Adamson and Peter Knibb, who have all since resigned, as well as SSL were also named as defendants.

However, King's Counsel Denise Kitson says her clients, Knibb and Adamson, were removed from the as parties to the suit on February 17 and costs awarded against the FSC. 

The FSC, which has temporary management of SSL, explained in court documents that it acted after the SSL named Caydion Campbell as a trustee to pursue the winding up of SSL's operations. 

"The defendants are refusing to cooperate; effectively hindering the claimant (FSC) in carrying out its functions," said Donia Fuller-Barrett, the FSC's acting general counsel, arguing that SSL's appointment of a trustee on January 16, and the subsequent wind-up application “will have serious repercussions” for clients.

She said: “If this were allowed to happen, the claimant anticipates that the 1st Defendant's (SSL) clients will not recover their funds and/or assets, if the company is dissolved."

Campbell has rejected the allegations, noting that his impending appointment was communicated to the FSC and ultimately took place before the regulator named Kenneth Tomlinson as temporary manager on January 17.

Last month, The Sunday Gleaner revealed that the FSC declared SSL "insolvent" as it does not have enough money to pay its debts.

On March 10, the regulator filed an application before the court seeking leave to present a petition under the Companies Act for the winding-up or liquidating of SSL; leave to appoint Tomlinson as trustee and confirmation of “full and exclusive powers of management” of SSL vested in the FSC effective January 17.

Former SSL wealth advisor Jean-Ann Panton is the only person charged in the alleged $3 billion fraud that includes sports legend Usain Bolt among the victims. 

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