SSL PAYOUT

Scandal-scarred Stocks & Securities Limited (SSL) has indicated that it is advanced in its plans to pay its clients.

The announcement, which came via press release from regulatory body the Financial Services Commission (FSC), follows a multimillion-dollar fraud and irregularities uncovered at the investment company in January 2023 that ballooned past US$30 million, or J$4.7 billion, with more than 200 accounts impacted.

Track and field legend Usain Bolt is among the victims.

The payout is primarily from the proceeds of the International Securities Client Portfolio sale, with an approximate value in excess of US$30 million or J$4.7 billion, the FSC said.

FSC said it will closely monitor SSL’s actions throughout this process.

“The FSC remains resolute in its mission to facilitate the fair treatment of SSL investors. This vigilant oversight is crucial to ensuring that SSL meets its obligations to clients in a timely and transparent manner, in alignment with the legal and regulatory framework established by the Securities Act,” Executive Director of the FSC, Lt Col Keron Burrell, said.

However, an upset SSL client, who wrote to The Gleaner, argued that SSL is requesting that clients accept only a portion of their funds in the payout as the company continues its court-supervised winding-up process.

In the letter dated September 13, over the signature of SSL trustee Caydion Campbell, the client was told that an initial payment of 90 per cent of the cash balance held in the SSL account as of May 31, 2024 would be made.

“I would also like to bring to your attention that given the costs incurred during the temporary management of SSL between the period January 17, 2023 and May 31, 2024 to protect and facilitate the liquidation of clients’ investments, an application will be made in court for a fee of between five per cent and 10 per cent to be levied on clients’ accounts to cover these costs.

“In lieu of awaiting the determination by the court, I would be prepared, with your consent, to remit a further five per cent in full and final settlement of SSL’s obligation with respect to the cash balance(s) on the captioned account(s) within seven business days of receiving your written authorisation. That is, you would receive in total 95 per cent of the balance that was standing to the credit of your account as of 31 May 31, 2024,” the letter said.

The SSL client has called the request “unfair”, noting that clients have already endured a long wait to receive their investments, which should have been unaffected by the fraud.

The client said the development is “troubling” and affects many of the company’s clients.

SSL said, as it relates to the non-cash portion of clients’ portfolios, which may include equities listed on the Jamaica Stock Exchange and fixed income instruments, things are still being finalised regarding the arrangement for their transfer.

Meanwhile, the FSC said it continues to collaborate closely with law enforcement agencies to ensure the pursuit and successful completion of thorough investigations of any improprieties at SSL.

“The commission assures all stakeholders that it is dedicated to maintaining transparency and accountability throughout this process and will provide further updates as necessary,” it said.

Former SSL Client Relationship Manager Jean-Ann Panton is facing a 21-count indictment after being charged with forgery, larceny as a servant, and engaging in a transaction involving criminal property.

She is the only person charged in the matter so far.

In March, the Office of the Director of Public Prosecutions clarified that it has not made a ruling on whether further charges should be laid in the fraud case because it is still awaiting outstanding documents from the Financial Investigations Division.

kimone.francis@gleanerjm.com