Ponzi schemes take hold in T& T
There are many Ponzi scheme operators in Trinidad and Tobago like US securities scam artist Bernard Madoff, who are getting away with crimes because they ‘seem to have the protection’ of local authorities, says Opposition Senator Wade Mark.
“Some of them should be in jail right now but they’re wearing jacket and tie and appearing to be decent citizens,” Mark said.
He made the claim at this week’s sitting of the Senate at the Red House, Port of Spain, during the debate on the new Securities Bill 2009 introduced by Minister in the Finance Ministry Mariano Browne that is meant to replace the existing Securities Act.
The debate on the bill, which requires a special three-fifths majority for passage, was not completed this week and will continue during next week’s Senate sitting.
The new legislation includes TT$2 million fines for specific offences and gives a much better definition of insider trading as questions have been raised earlier in the year as to whether some public figures had benefitted from privileged information at the expense of average investors.
It is also meant to strengthen the Securities and Exchange Commission.
Mark spoke of Madoff as he raised several concerns about the bill even though he said its objective of protecting local investors was ‘laudable’.
‘From 1992 until he was caught in 2008, and he was just scheming his way through and we have to be careful in Trinidad and Tobago because we have a lot of Madoffs here and they are doing almost the same thing, Mr President, and you know why they are determined, Mr President? They seem to have the protection of the authorities in this country,’ Mark said.
He he raised concerns about a provision in the bill that provides for this country’s President to appoint the members of the SEC.
Browne conceded there were deficiencies in the existing legislation that will be addressed by the new bill as he said the SEC had been advised that from 1998 to 2009, ‘the value of securities outstanding has increased from TT$69 billion representing 81 per cent of GDP to TT$207 billion representing 123 per cent of GDP’.
