The Jamaican Supreme Court has ordered a freeze of the assets of businessman Joseph ‘Joey’ Issa, following a US million-dollar fraud/negligence suit slapped on the Cool Group of Companies boss by his close friend of 14 years.

Court documents reveal that Issa, son of hotelier John Issa, was named as second defendant in the lawsuit filed against him by St Ann businessman Arthur Von Strolley, who is claiming US$1.5 million in damages after an investment deal linked to the ill-fated forex trading outfit, Olint TCI went sour.

Also named with Issa in the October 16, 2008 suit are first defendant Wisdom Investments Holdings Jamaica Limited; third defendant, Sasha Harjani, secretary of Wisdom Investments Holdings Jamaica Limited; and fourth defendant, Wisdom Investments Holdings Limited.

Both companies are owned and controlled by Issa.

The parties are expected back in the Supreme Court this morning where Issa, who is represented by attorney Michelle Champagnie, will seek to get the injunction lifted.

Based on a “Without Notice Application for Court Orders”, Supreme Court Justice Roy Anderson issued an injunction on December 15, 2008 restraining the defendants from “disposing of and/or dealing with their assets…” and from “withdrawing or transferring any funds from their accounts wheresoever held until judgement or further order herein”.

Justice Anderson also ordered that the defendants declare all their assets and that Issa, Harjani and Wisdom Investments Holdings Limited instruct FirstCaribbean International Bank (Jamaica) Limited to provide Von Strolley’s attorneys with a statement of account covering the period from June 1, 2007 to date of disclosure in respect of Account No 1001603835 in the name of the Wisdom Investments Holdings Limited, indicating details of deposits and withdrawals “whether by cheque or otherwise”.

Von Strolley, who is represented by Abe Dabdoub of the Kingston law firm Dabdoub, Dabdoub and Company, is contending that he was induced by Issa to invest US$1.19 million with Wisdom Investments Holdings Jamaica Limited, with the agreement that he would get a four per cent per month return on the principal.

The claimant said that the money was generated from the sale of his house and from his business, and was invested over a period from June 2007.

In the suit, Von Strolley said that he received various amounts as returns on his investment. However, since February 2008, Wisdom Investments Holdings Jamaica Limited had ceased making returns – calculated at US$337,343.63 – nor had he received his principal, despite repeated demands.

Von Strolley further alleged that Issa had advised him that some of the funds had been invested with Olint TCI without his (Von Strolley’s) authority or instructions, “knowing the said company to be unable to meet its financial obligations”.

Olint TCI, operated by foreign exchange trader David Smith, has had its funds frozen in the Turks and Caicos Islands where it is based and is the subject of several other lawsuits or threats of lawsuits. At its peak, the trader offered upwards of 10 per cent interest per month on investments.

But in an affidavit filed Tuesday, December 30, Issa urged the court to set aside the asset freeze and disclosure orders. He alleged that Von Strolley’s claim was “riddled with lies and he has not told this Honourable Court what actually transpired”.

“He has failed to disclose material information and has generally misrepresented the facts,” the businessman shot back. He denied that Wisdom Investments Holdings Jamaica Limited had any dealings whatsoever with Von Strolley, and that either himself or Harjani had any “personal contract or dealings with the claimant with regard to the subject matter of this suit”.

Issa charged, in the court documents, that the dispute arose “in respect to an investment which the claimant requested the 4th defendant (Wisdom Investments Holdings which was incorporated in the British Virgin Islands) to have made on his behalf in Olint”.

In addition to freezing Issa’s assets, the Supreme Court ordered FirstCaribbean Bank to immediately disclose to the court details of all accounts held by the defendants from June 1, 2007, a copy of which was to be presented to Von Strolley’s attorneys.

Failure to comply with the order would put Issa in contempt of court and he could be liable to be imprisoned or have his assets confiscated, the court warned.