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April 17, 2008 |
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CASH PLUS: Carlos Hill to Appear in Court for Fraud Charges Cash Plus Limited's President Carlos Hill will appear before the Corporate Area Criminal Court of Jamaica to answer fraud charges, Radio Jamaica reports. As reported in the Troubled Company Reporter-Latin America on April 16, 2008, Mr. Hill was charged with fraud after police officers from the Mobile Reserve, Flying Squad, and the Organized Crime Division raided his house in response to complaints from investors who accused Cash Plus of fraud. Specifically, investors complained that cheques received from the firm bounced. Mr. Hill's brother Bertram Hill and Cash Plus' Chief Financial Officer Peter Wilson will also face fraud charges. The Hill brothers and Mr. Wilson were charged with "five counts of fraudulent conversion and one count of conspiracy," RJR News Center says, citing the defendants' attorney, Churchill Neita. Radio Jamaica relates that the investigation into Mr. Hill's financial affairs uncovered "what appears to be an elaborate pyramid scheme." Investors provided funds to guarantee that club members who had lodged funds could get returns, Radio Jamaica notes, citing Assistant Commissioner of Police Les Green. Mr. Green told Radio Jamaica that additional assets were transferred overseas and that Cash Plus knew for some time that the scheme would collapse. Investigators uncovered "a web of complex financial activities involving billions of dollars." "Documents found in the Cape (in South Africa, indicate) that a loan of US$1 billion had been secured in January 2008 and at least US$2.5 billion held in five accounts in Germany," Mr. Green commented to Radio Jamaica. Mr. Green told Radio Jamaica that the police are trying to find out whether bank guarantees, loans or letters of credit exist for: -- US$450 million held in Ghana or London, -- US$1 billion at ABM AMRO, -- J$100 million at ISH Bank, -- J$3 billion in KAS Bank together with US40 million cash, and -- US$10 million from HSBC. These funds were held under the name of Galina Trust Limited, the report says, citing Mr. Green. Mr. Green further told reporters that "Additional documentation has been assessed and these indicate that other significant sums and bank accounts may exist and are believed to be held in the Dominican Republic, British Virgin Islands, the United Kingdom, Holland, Spain, Kuwait, Spain and China." It will take time to confirm if there are any funds and even longer to recover the money for investors, Mr. Green admitted to Radio Jamaica. The Cash Plus officials' defense attorney Hugh Thompson told the RJR News that he "was shocked that the police called a press conference on the matter while he and his colleagues have been kept in the dark on the status of his clients." Mr. Thompson commented to Radio Jamaica, "I'm quite indignant that these people have gone to the media and making all manner of revelations which are unfounded as far as we're concerned. They have chosen not to make any contacts with us, they have our cell numbers, our telephone numbers and what they are doing is a disgrace. We're most upset and will be dealing with this matter as quickly as possible." Radio Jamaica relates that the police also arrested Cash Plus' Public Relations Consultant Garwin Davis. Detectives raided Mr. Davis' home at St. Ann. Mr. Davis "traveled extensively on the forged passport" over three years as immigration stamps listed departure and arrival dates from 1992 to 1995, Radio Jamaica says, citing investigators. According to Radio Jamaica, Mr. Davis was charged with: -- possession of a forged US passport, -- forgery of a US passport, and -- false declaration. Police are seeking other persons of interest for questioning in line with the investigation into Cash Plus' operations, Radio Jamaica says, citing Mr. Green. Investigators have "identified new lines of investigations" and that another police operation was undertaken last Tuesday outside the "Corporate Area," Mr. Green told Radio Jamaica. 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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