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April 14, 2008 |
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CASH PLUS: Police Raid Carlos Hill's Residence Radio Jamaica reports that police officers from the Mobile Reserve, Flying Squad, and the Organized Crime Division have raided the house of Cash Plus Limited's President Carlos Hill at 68 Norbrook Drive in St. Andrew in response to complaints from investors who accused the firm of fraud, Radio Jamaica reports. According to the Constabulary Communication Network, Cash Plus investors complained that cheques received from the firm bounced. Radio Jamaica says that the investors are being urged to submit complaints formally using a form available on the Ministry of National Security Web site at http://www.mns.org.jm Claims of fraud must go through the Web site and it won't be accepting any fraud reports by any other means, Radio Jamaica says, citing CCN. According to Radio Jamaica, the police and officials from the Financial Investigation Division searched the premises and several boxes were brought in to carry away documents confiscated at the house. Five vehicles including three high end SUVs from the premises were also removed. The report says that a representative from a security firm showed up at the scene claiming to act on behalf of Mr. Hill and saying that items not belonging to Mr. Hill could be removed from the residence. Radio Jamaica notes that Mr. Hill was taken to the OCID offices where he will be formally interrogated. The police also raided other residential and commercial properties of some of Mr. Hill's associates. Two members of Mr. Hill's management team were also taken to the OCID offices, Radio Jamaica relates. Cash Plus investors showed up at the firm's New Kingston offices as news of the raid circulated, according to Radio Jamaica. An investor told the RJR News Center he heard that Cash Plus wouldn't be able to honor its earlier commitment to pay investors at the end of the month. The investor commented to Radio Jamaica, "We need our money and (that is what) I would like the government and Mr. Hill to know. Blood or sweat or whatever it cost, we need our money. I invested my live savings." Radio Jamaica reports that branches of the Premier and Island Life Plaza were closed, while employees at the 67 Slipe Road Offices of Cash Plus are waiting for word from company officials as to what will happen to them. As reported in the Troubled Company Reporter-Latin America on April 11, 2008, Cash Plus hasn't paid the March salaries of workers at its phone card distribution center. The workers complained that the management hasn't told them when they will be paid. A worker said that Cash Plus should have paid them on March 25, 2008, before it was placed into receivership. Managers at Cash Plus' phone card distribution center told Radio Jamaica that the workers are still on the job. Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. |
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