$200M SSL SUIT

An 80-year-old woman whose accounts at Stocks and Securities Limited (SSL) were reportedly defrauded of US$830,000 has filed a lawsuit against the investment firm, its former Client Relationship Manager Jean-Ann Panton, founder Hugh Croskery, and eight other people in the Supreme Court to recover the sum among other damages.

The claimant, Jean Forde, a retired librarian who resides in Canada, is also seeking restitution in the sum of US$518,175 for SSL’s “unauthorised” sale of her 11 per cent 2021 bond issued by the Jamaica Public Service.

SSL has been named as first defendant in the claim, followed by Panton, Croskery, and his son Mark, Lamar Harris, Zachary Harding, Jeffery Cobham, Sarah Meany, Laurence Adamson, Peter Knibb, and Ivan Carter.

The defendants served as either SSL board members or chief executive officers.

Forde, in a sworn 18-page affidavit, accused the defendants of negligence, breaching their fiduciary duties, conspiracy, and unjust enrichment.

She is seeking, among other things, a declaration from the court that SSL acted in breach of trust, damages for breach of trust and contract, conversion, conspiracy, unjust enrichment, and negligence.

Forde also wants an account of all payments to and from each of her accounts and an account of funds accruing in the accounts since they were opened to the time of judgement.

She is also seeking interest, pursuant to the Law Reform Act, at a commercial rate or a rate and period the court deems just as well as costs and attorney costs.

The elderly woman, who was born in Jamaica but emigrated to Canada over 50 years ago, said she became aware of SSL while living in the North American country.

She said that her late twin brothers, Dr Rowland Forde and Henry Forde, encouraged her to start investing funds for her retirement through the firm.

She became a client in or about 2000, she said.

She noted that Rowland was also living in Canada, but after retirement, he sold his house, invested the proceeds through SSL and returned to Jamaica, where he remained until his death in 2020.

She said that Henry, on the other hand, would invest money she sent him on her behalf through SSL.

Forde said that in 2013, she sold one of two apartments she owned in Jamaica for $18 million and invested all the net proceeds at SSL.

At all times, the woman said, she maintained two investment accounts at SSL, at least one in Jamaican currency and another in US.

She said Panton, a wealth adviser, managed her accounts, one of which she held with Rowland.

The dual citizen said that on visits to the island, she would use income from her accounts. She would also collect money and statements of account left by Panton from a security guard at SSL at her request.

The octogenarian said the statements seemed in order and that she had no cause for concern.

Forde said for the past 10 years in December, she instructed Panton to withdraw money not exceeding $20,000 to give gratuities to her gardener and cleaners of her remaining apartment as well as gifts for friends. Outside of that, she said, Panton has never been authorised to take money from her accounts.

The woman said she was informed by Panton that funds were invested in an overseas utility company that paid dividend semi-annually and was under the impression that she was using money from paid dividends to meet her expenses whenever she visited Jamaica.

Forde said that in January, she was informed by a friend that her name was in a statement purportedly by Panton, naming her among the victims of fraud at SSL.

She said she also learnt that Henry’s – instead of Rowland’s – name was “erroneously” listed as another of the more than 40 SSL victims. Forde said that all accounts were closed with Henry after he died.

Forde, in her affidavit, said she was “horrified” and “extremely worried” to learn about Panton’s alleged confession and that sums had been reportedly stolen from her, retired track star Usain Bolt’s and other clients’ account.

Bolt’s account was reportedly defrauded of approximately US$12 million.

Forde said an email to Kenneth Tomlinson, who was appointed SSL’s temporary manager by the Financial Services Commission (FSC), revealed that she had no more than $19,090 in her Jamaican currency account and no money in her US currency account.

She said the US account should have had no less than US$830,000. Both accounts were dormant, she was told by Tomlinson.

Forde argued that SSL was negligent in that it failed to, among other things, ensure that a secure system was in place to govern access and use of funds or other assets; provide clients periodically with accurate statements; ensure proper supervision and accountability of employees and officers; ensure proper management and monitoring of clients’ accounts, and, in particular, her accounts; ensure that SSL’s funds were segregated from clients’ funds; detect irregularities and suspicious transactions relating to her and other clients’ accounts; and complying with the best practices of the Financial Services Commission (FSC).

The FSC is the state body that regulates non-deposit-taking institutions in Jamaica.

In the affidavit, Forde alleged that the defendants conspired to present to the public and to SSL’s actual or potential clients a “false and deceptive” image and impression of SSL’s financial health, state, and level of regulatory and prudential compliance with the intention to “lure and induce” potential investors or clients and to encourage actual investors to continue investing in or through SSL.

Additionally, she said that her JPS bond was a high-yield security instrument issued by a credit-worthy issuer. She said that on or about March 5, 2019, when SSL was “nearly or actually” insolvent, the company, without her consent, sold the JPS bond and purchased a bond it issued itself, using all the proceeds of the sale of the JPS bond.

She said this was for SSL’s own benefit and that the investment firm enriched itself at her expense.

Forde argued that she is entitled to restitution of all the proceeds of sale of the JPS bond.

Further, Forde wants the court to appoint Tomlinson as receiver of SSL. She said this way, the SSL temporary manager would account to her and the courts.

kimone.francis@gleanerjm.com