SSL fraud probe at advanced stage, authorities reveal
Published:Sunday | December 10, 2023 | 12:09 AMLivern Barrett - Senior Staff Reporter
There are indications that the country’s top prosecutor is close to delivering a legal opinion to investigators on whether additonal criminal charges should flow from one of the largest alleged fraudulent schemes in Jamaican history.
Chief prosecutor Paula Llewellyn told The Sunday Gleaner on Friday that her office is awaiting additional “documents” from the Financial Investigations Division (FID) to complete its review of the “voluminous” Stocks & Securities Limited (SSL) case file.
“There is a team of four seasoned senior prosecutors who are reviewing the matter. They have not yet completed their review because they are still awaiting some outstanding documents from the FID investigators,” said Llewellyn, the director of public prosecutions (DPP).
She declined to give a timeline when a ruling will be sent to investigators.
“So as soon as the investigators furnish the outstanding materials to the team of senior prosecutors who are reviewing the matter, then we will see where we are,” Llewellyn said during an interview with The Sunday Gleaner on Friday.
EVIDENCE KEPT SECURELY OFF SITE
Last week, investigations into the high-profile alleged multibillion-dollar fraud at SSL took an interesting turn when its St Andrew corporate office was broken into and at least five laptop computers, including one belonging to SSL’s chief financial officer, were stolen.
The early Thursday morning break-in came hours after the FID provided the latest public update on the alleged fraud, disclosing that the irregularities, first uncovered in January, had now ballooned past US$30 million, or approximately J$4.7 billion, with more than 200 client accounts impacted.
The suspicious burglary triggered public concerns and scepticism about the impact on the sprawling and complex investigation, but the authorities have disclosed that no critical evidentiary material relevant to the investigation was compromised.
According to the FID, the agency leading the probe, all relevant electronic materials were secured “early in the investigation”.
This was done by the agency’s cyber team, which is “very experienced in this area”, said the FID in response to questions submitted by The Sunday Gleaner.
“The materials were forensically imaged and are being kept off site in a secure manner,” said the FID, which falls under the Ministry of Finance and is mandated by law to enforce Jamaica’s proceeds of crime law.
Up to yesterday, police investigators had no suspects or leads in the break-in at SSL’s Hope Road office.
“Break-in cases are very difficult if you don’t catch people in the act,” one investigator explained.
The alleged fraud was initially estimated at J$3 billion before the FID disclosed in September that the investigation also “identified other fraudulent schemes at SSL which has resulted in the misappropriation and/or loss of numerous investors’ funds amounting to over US$10 million”.
Jamaican track and field icon Usain Bolt and octogenarian Jean Forde are among the victims of the alleged fraud.
The value of Bolt’s investment, made through the St Lucia-registered company Welljen LLC, plummeted from J$2 billion, or nearly US$12.7 million, in October 2022 to J$1.8 million or US$12,000 in January this year, lawyers for the retired world record holder disclosed earlier this year.
Forde has claimed in a lawsuit against SSL that US$830,000 was defrauded from her account at the investment firm.
BREAK-IN NO COINCIDENCE
The “methodical” search of SSL’s office on Thursday, hours after the public update by the FID, are clear indicators that the break-in was not a coincidence and that the intruders knew exactly what they were looking for, police sources theorised.
“They (SSL) don’t handle cash and you wouldn’t expect money to be left in a desk drawer or anywhere like that, but when you see how dem search up the place, you know a records dem a look for,” one police source close to the investigation told The Sunday Gleaner on Friday.
“The place full a laptops (computers), but dem only choose fi take those five,” the source noted.
Jamaica has sought international assistance in the search for evidence that could be tied to the alleged SSL multibillion-dollar fraud, the FID disclosed last Wednesday, noting that the case transcends national borders.
The Mutual Legal Assistance Treaty (MLAT) is one of the channels being utilised, the FID disclosed.
MLAT is a tool of cooperation used by countries to assist each other in the investigation and prosecution of criminal offences.
It can also be used to obtain assistance to investigate proceeds of crime offences as well as restraining and forfeiture of applications, according to the office of the DPP.
Llewellyn, whose office is the designated central authority for MLAT cases, declined to disclose the countries to which Jamaica has forwarded requests for assistance under the treaty.
“MLAT requests are confidential, so we are not going to make any comment on that,” she insisted.
The FID said the SSL probe involves a comprehensive examination dating back to the inception of the firm in 2006.
“The meticulous inquiry requires a thorough analysis of the entire time period, scrutinising the flow of investor funds. This process, by its nature, is time-consuming and deliberate.”
The agency said its findings reveal “potential” criminal and regulatory breaches involving both the company and individuals associated with it, not including former SSL wealth adviser Jean-Ann Panton, who is in custody awaiting trial for several fraud-related offences.