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April 18, 2008 |
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CASH PLUS: Carlos Hill May be Hiding US$4.6 Billion Abroad The Jamaican police will be investigating on the possible existence of Cash Plus Limited President Carlos Hill's over US$4.6 billion cash outside the country, The Jamaica Gleaner reports. As reported in the Troubled Company Reporter-Latin America on April 17, 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 also face fraud charges. The Hill brothers and Mr. Wilson were charged with five counts of fraudulent conversion and one count of conspiracy. The police also arrested Cash Plus' Public Relations Consultant Garwin Davis. The Jamaica Constabulary Force told reporters that it was continuing its probe to determine Cash Plus' financial status and assets. Investigations may have to be made in Europe, the Caribbean, and the Far East to assess Mr. Hill's financial affairs, Les Green, assistant commissioner of police, told journalists. Mr. Green told The Gleaner that some materials and documents found at Mr. Hill's residence showed over US$4.6 billion lodged in various countries, in the name of Galina Trust Limited, which is registered in the Turks and Caicos, and these funds will have to be confirmed. "I urge restraint regarding what appears to be vast sums of money as it will take time to confirm their existence. 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 British Virgin Islands, UK (United Kingdom), Spain, Kuwait and China," Mr. Green commented to The Gleaner. According to The Gleaner, the documents also indicate that a US$1 billion loan had been secured in January 2008 "on at least US$2.5 billion held in five accounts in Germany." The Gleaner notes that the police also found 186 firms either directly connected to Cash Plus or may be affiliated with Mr. Hill. Mr. Green told The Gleaner that the investigations are headed by: -- Major Investigations Taskforce, -- Organized Crime Investigation Division, and -- Fraud Squad. International police assistance will be sought as the investigations progress, The Gleaner states. 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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