Businessman accused of using POS terminal to steal nearly $100m from bank

Criminal charges have been laid against a businessman for allegedly using a “sophisticated” fraudulent scheme to fleece a local financial institution of almost $100 million, authorities have disclosed.

Jerhoden Hinds, 25, the proprietor of Original 24K Klothing Company Limited, has been charged with conspiracy to defraud, possession of criminal property, engaging in a transaction involving criminal property and simple larceny, the Financial Investigations Division (FID) said in a statement on Wednesday.

The fraudulent scheme involved the use of a point-of-sale (POS) terminal issued by the financial institution for legitimate business purposes, which Hinds and his accomplices intentionally placed in offline mode “to exploit the system and commit fraud”, the FID statement alleged.

It’s alleged that the crimes took place between November 13 and December 28, 2022.

“By bypassing the bank’s real time authorisation system, the scheme caused the bank to unknowingly advance funds to Hinds’ bank account which were quickly depleted via withdrawals and transfers,” the FID statement alleged.

“The transactions were subsequently flagged as fraudulent and losses to the local bank of approximately US$618,856 (the equivalent of J$99 million)”, the statement also alleged.

Principal Director of Investigations at the FID, Keith Darien, said the case highlights the “increasing complexity” of financial crimes in Jamaica and the critical need for constant vigilance and inter-agency collaboration.

“Fraud not only undermines the financial system, but also erodes public trust,” said Darien, noting that the FID and its partners in law enforcement are committed to uncovering and dismantling these schemes.

Hinds was arrested at his Old Harbour, St Catherine, home on Monday during an operation led by cops from several units within the police force, including the Constabulary Financial Crime Unit, the Special Operations Unit and the Counter Terrorism and Organised Crime Division.

Five cellular phones, allegedly belonging to Hinds, his spouse and his brother, were seized during the operation as well as two locked safes with a total of J$1.9 million.

Hinds was granted bail in the Kingston and St Andrew Parish Court in the sum of $400,000 and is to return to court on June 10.

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