BOLT FLEECED

A highly “sophisticated” fraud scheme involving the liquidation of more than a billion Jamaican dollars in stocks and bonds held by more than 20 clients, including sprint legend Usain Bolt, has rocked Stocks and Securities Limited (SSL), triggering increased oversight of the investment firm by regulator the Financial Services Commission (FSC).

A former employee is suspected to have orchestrated what is considered to be one of the largest heists in Jamaica’s financial sector.

The massive fraud, which sent shockwaves across the country, was discovered only late last week, according to a Gleaner source who is close to the investigations.

The former employee, who was under investigation for unrelated issues at the private company, reportedly contacted Bolt’s management on Wednesday after the company’s internal mechanisms uncovered significant irregularities with several accounts she used to manage.

The multi-Olympic and World Championships gold medallist’s management team was then called in by SSL to discuss the matter.

Bolt’s portfolio, which is linked to a holding company, has reportedly been defrauded of approximately US$6 million in stocks and bonds while other clients total approximately US$4 million, preliminary estimates indicate.

An additional J$40 million in stocks and bonds was also reportedly misappropriated.

The alleged fraud was reportedly being perpetrated for at least a year.

Up to press time on Thursday, the police occupied the Hope Road offices of the company and could not indicate when the former employee would be questioned or possibly charged.

Attorney-at-law Tamika Harris, who is representing the former employee, declined to comment when contacted by The Gleaner about the explosive development on Thursday.

“My client is in discussions with SSL and the lawyers representing SSL. That is where we are. We’re in discussions,” Harris said.

Bolt’s manager, Nugent Walker, told The Gleaner on Thursday that he could not “categorically state at this present time” the magnitude of the impact to the now-retired track star, noting that investigations are ongoing.

“But he does have an account there,” Walker said.

He said the matter was brought to his attention on Wednesday and said that every effort is being made to get to the bottom of what has transpired.

He added that reports were made to the FSC and the Financial Investigations Divisions.

Walker said that up to Wednesday, Bolt had been receiving statements from SSL that indicated that all was well with his portfolio.

Walker said that Bolt, who has been with the company for more than 10 years, is experiencing a raft of emotions.

“Whatever services the company offers, he would have been exposed to,” he said.

SSL said it provides highly personalised, research-driven investment advisory services for individuals, families, and small and medium-sized enterprises, focusing on Jamaican clients.

“We have been a pioneer in the investment advisory services business by focusing on client-segregated accounts with an emphasis on US-dollar exposure for clients’ capital preservation and principal protection,” the company’s website said.

Its investment advisory services include private wealth management and financial-planning services, consisting of wealth managers and financial advisers.

The FSC said it has issued directions to SSL in the form of a supervisory tool to allow it to engage an entity in a process of enhanced oversight. Among other things, SSL is to hand over daily records of all transactions going forward until further notice.

“In the case of SSL, this enhanced oversight reflects the need for the FSC to have a full view of the integrity of the transactions being conducted, including the movement of funds, and of securities into and out of SSL.

“Under the directions, SSL can still conduct business on behalf of its clients but with the oversight and approval of the FSC,” the regulator said in a statement on Thursday.

– Tanesha Mundle also contributed to this story.

editorial@gleanerjm.com