More victims, more fraud and more arrests to come in SSL case – FID

The number of victims in the alleged fraud at investment firm Stocks and Securities Limited (SSL) is now 70 and the amount of money fleeced has grown by approximately US$10 million or J$1.5 billion as more fraudulent schemes have been uncovered, according to an update from the Financial Investigations Division (FID).

The FID is the government agency that investigates financial crimes in Jamaica. 

In a statement Thursday, the FID said its probe has also revealed "an entrenched culture of gross mismanagement dating back well over a decade" at the 50-year-old SSL, which is now under government management. 

The agency said before the next court date in the matter, it anticipates the arrest and charge of "other actors involved in the multiple fraudulent schemes recently discovered."

Former client relationship manager at SSL Jean-Ann Panton is the only person charged in the matter so far.

She is due back in court on December 6. 

Director General of the FID, Selvin Hay, said the investigation has taken on "new dimensions which are wider than first expected."

The probe started in January when the fraud was reported. 

At that time, it was reported that some $3 billion were allegedly defrauded from some SSL customers.

"What is being uncovered is that there are approximately 70 affected accounts; this is significantly more than the just over 40 affected accounts at the initial phase. The investigation has also identified other fraudulent schemes at SSL which have resulted in the misappropriation and/or loss of numerous investors' funds amounting to over US$10 million," he said. 

The FID said it is "robustly pursuing various lines of inquiry and taking all the necessary steps to lead evidence-based prosecutions in the court at the appropriate time against all guilty parties."

Meanwhile, the FID's Principal Director of Investigations Keith Darien added, “The duration of the fraudulent activities as well as the variety of fraud has resulted in the investigative process taking an extended period. Prosecuting financial crimes requires meticulous evidence gathering to ensure success in the court and to follow the money so that any illicit funds or assets may be identified, restrained, and recovered.

"There are certain deliberate actions being taken to support increased investigative efficiency. Our investigators have contacted the affected parties via email and phone calls but the responses from some have been short of encouraging," the FID said. 

The FID's update comes less than a week after Opposition Spokesman on Finance Julian Robinson demanded information on the investigations.

Months ago, athletics icon Usain Bolt, who was among the initial 40 alleged victims, threatened to go to the international media with his views because of a lack of updates from the authorities. 

In May, Panton claimed that she "confessed" to the fraud because of an alleged "offer" from her former boss and SSL's founder, Hugh Croskery. 

Croskery has denied the claim.

His attorney King's Counsel Peter Champagnie said in May that Panton's latest allegation "does not accord with my instructions from Croskery". 

The FID, the Financial Services Commission, which regulates the securities industry, and the Jamaica Constabulary Force's Fraud Squad are leading the probe.

They are getting assistance from the US Federal Bureau of Investigations (FBI) and United Kingdom-based forensic accounting and intelligence firm Kroll as well as the Asset Recovery Inter-Agency Network for the Caribbean.

Follow The Gleaner on Twitter and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.