Court ruling on who controls SSL set for May 31

Supreme Court judge Justice David Batts will rule on May 31 whether the Government should remain in control of fraud-hit investment firm Stocks and Securities Limited (SSL) or trustee Caydion Campbell. 

Batts gave the indication on Friday. The trial started in February. 

The ruling could clear the way for other legal disputes against SSL to resume. 

The Financial Services Commission (FSC) sued SSL and Campbell last year, claiming that Campbell's appointment was in breach of directives and an attempt to frustrate investigation of the multibillion-dollar fraud. 

The FSC, which regulates investment houses, has also argued that SSL's solvency declaration was flawed because it did not accurately represent the company's financial status and did not account for the fraud reported at the agency on January 10, 2023. 

SSL directors appointed Campbell as trustee on January 16, 2023 to pursue a reorganisation of the company through voluntary winding up under the Companies Act. 

After it found out about the move, the FSC filed a lawsuit on January 25, 2023. 

A trustee is a person or firm that holds and administers property or assets for the benefit of a third party or beneficiary. Their work involves validating claims from creditors, customers and investors.

The SSL-appointed trustee dismissed the FSC's arguments that the company was insolvent as at January 16 and pointed to a major capital injection that was under way. 

Campbell also countered that the FSC was aware of efforts to restructure the SSL and appoint a trustee.

He said there was even a proposal for a joint trusteeship between himself and the FSC. 

Campbell is represented by King's Counsel Caroline Hay while the FSC's case is being led by Lisa White, a senior attorney in the Attorney General's Chambers.

SSL is being represented by King's Counsel Carlene Larmond, whom the court appointed as an independent attorney for the entity after concerns were raised that the FSC, while suing the SSL, was exercising control over the entity's operations.  

The FSC took temporary management of SSL on January 17, 2023. 

Its directives, which barred SSL officials from dealing with the company's assets, were issued after SSL reported a fraud on January 10, 2023. 

The fraud case has ballooned to over $5 billion, with sports legend Usain Bolt among the affected clients.

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