SSL founder resigns from roles, rejects claims he's obstructing probes

Hugh Croskery, the founder of Stocks and Securities Limited (SSL), has resigned as director of the fraud-hit investment firm. 

"He remains committed to assisting if called upon by any investigative entity," said his attorney, King's Counsel Peter Champagnie, on Tuesday afternoon. 

Champagnie said the resignation was based on assertions from regulator the Financial Services Commission (FSC) that Croskery has been "uncooperative" in ongoing probes at the troubled 50-year-old company. 

The lawyer said the businessman is rejecting the FSC's claim and acted "for the avoidance of any suggestion to the contrary". 

The FSC, which has temporary management of SSL, made the assertion against Croskery and other players in an affidavit used to obtain a court order in January to block the winding up of the company. 

"The defendants are refusing to cooperate; effectively hindering the claimant (FSC) in carrying out its functions," said Donia Fuller-Barrett, the FSC's acting general counsel. 

She argued that the appointment of a trustee based on approval by SSL's directors, and the subsequent wind-up application “will have serious repercussions” for clients.

“If this were allowed to happen, the claimant anticipates that the 1st Defendant's (SSL) clients will not recover their funds and/or assets, if the company is dissolved,” Fuller-Barrett said. 

The trustee, Caydion Campbell has rejected the allegations, noting that his impending appointment was communicated to the FSC and ultimately took place before the regulator named a temporary manager on January 17.

Campbell has also insisted that a reorganisation of SSL was contemplated and that the freezing order has threatened a $441 million-takeover bid by Spectrum Capital Partners, which says it's a member of the UCC Group of Companies. 

The case is being mentioned before the Supreme Court this afternoon. 

Croskery resigned with immediate effect in a letter dated February 24 that he wrote to Kenneth Tomlinson, the FSC-appointed temporary manager. 

He said he was relinquishing his post as director of SSL and its parent company SSL Growth Barbados, for which he was also chairman. 

"I am of the view that my resignation would additionally signal and strengthen my position that I am no hindrance to the FSC's function, or to any other legitimate body authorised to conduct investigations into this matter," he said in the letter obtained by The Gleaner. 

Ex-SSL employee Jean-Ann Panton was recently charged in the alleged $3 billion fraud that includes sports legend Usain Bolt among the victims. 

The fraud was reported in January.

- Jovan Johnson

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