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April 21, 2008 |
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CASH PLUS: Court Denies Carlos Hill's Request for Bail Radio Jamaica reports that the Half way Tree Criminal Court denied the request for bail by the defense attorneys for Cash Plus Limited's President Carlos Hill. Mr. Hill's brother Bertram Hill reportedly was also denied bail. As reported in the Troubled Company Reporter-Latin America on April 17, 2008, Mr. Hill was charged with fraud after police officers 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 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. According to Radio Jamaica, prosecutors objected to bail after declaring that Cash Plus doesn't have money in Jamaica to repay investors. They asked the court to keep the Hill brothers and Mr. Wilson in custody. Radio Jamaica notes that Mr. Wilson was offered bail for J$5 million. The report says that prosecutors said during the court hearing that Mr. Hill and his organization deceived investors when they published information suggesting they had bought the Hilton Kingston Hotel and Drax Hall Estate in St. Ann for US$142 million. The prosecutors claimed that Cash Plus doesn't own any of the properties. The false information was published to attract investors to Cash Plus, Radio Jamaica says, citing the prosecutors. The court hearing will resume on May 14, 2008, Radio Jamaica adds. 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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