NEW YORK, USA — Leaders of some of the top Diaspora organisations in the United States and United Kingdom say their members have been turned off from investing in Jamaica after the multi-billion-dollar fraud at investment firm Stocks and Securities Limited (SSL).

“Our feedback on the matter shows that many nationals here are willing to continue supporting their families and relatives back home, but are not willing to invest their funds there,” said Joyce El–Ali, president of the 50-year-old umbrella National Association of Jamaican And Supportive Organisations (NAJASO).

“There is also a belief among some that their investments are safer in the US, even though returns on those investments maybe lower,” she told the Jamaica Observer.

The NAJASO head said that news of the scale of the fraud had led to the loss of trust in whatever safeguards existed against such occurrence, “since it is widely felt among many within the Diaspora that the situation had been orchestrated over a prolonged period”.

Speaking for Jamaicans in Britain, Dr Kevin Brown, UK north representative on the Global Jamaica Diaspora Council, suggested that the fraud had left many within the Diaspora there “disappointed and concerned” about the damage done to the country’s reputation.

“The SSL fraud scandal has been damaging to the image of Jamaica, and further deepens the level of distrust the Diaspora has for Jamaica,” said Dr Brown. “This is especially so regarding investing and doing business in the island which, at best, has been challenging in the past.”

Brown said that as a result of the SSL fraud many Jamaicans in the UK are now hesitant to invest in Jamaica while some may even withdraw money they have here.

While there is no clear figure on the extent of investment in the island by Jamaicans overseas, remittance inflows exceeded US$3.3 billion for 2021, representing an increase over the US$2.9-billion for 2020, the Jamaican Government reported last year.

Newly elected representative on the Global Jamaica Diaspora Council for Southern United States Peter Gracey, urged the Government to find ways to assure the Diaspora “that they have our backs when it comes to investing in the island”.

“There are already a lot of people who are either stepping back or holding back on plans to invest in their homeland as a result of the SSL fraud issue,” Gracey disclosed.

El-Ali, Brown, and Gracey are among six Diaspora leaders representing the bulk of Jamaicans overseas who spoke with the Observer as discussions about the SSL débâcle continue to rage.

The fraud case, which came to light early January 2023, touched the accounts of about 40 investors, quickly gathering steam after news emerged that among the investors was Jamaica’s sprint hero Usain Bolt, who is reported to have lost just over US$12 million.

Last month, a former employee of the company, Jean-Ann Panton, appeared in court on a number of charges related to the fraud case. She has since been remanded. SSL has been put under the supervision of the Bank of Jamaica and a revamped Financial Services Commission, as investigations continue.

NAJASO’s El-Ali said she was aware of widespread doubt that anything would come of the investigations in respect of holding people accountable.

Former Jamaican Ambassador to the United Nations Curtis Ward argued that Jamaicans who had invested in Jamaica should be concerned, suggesting that the SSL issue had put a damper on some who are considering doing business in the country.

“People have to be able to trust their broker with their hard-earned money,” Ambassador Ward lamented.

Gracey, for his part, believed the fraud case could damage the Government’s plan to develop the country to the point where it is viewed as the preferred place to live, work, and raise a family by 2030.

“It is imperative that Jamaican authorities move with utmost speed to ensure that the Diaspora does not suffer irreparable damage in confidence and trust about investing in the country. At this point I am not seeing that anything is being done in this regard,” Gracey complained.

Rick Nugent, who is president of the Jamaica Association of Maryland, described the fraud at SSL Ltd as “appalling”, noting that it was already “having a negative impact as many here are raising questions about taking up investment opportunities in Jamaica”.

Founder of the non-profit People’s Profile, Dr Allan Cunningham, said the SSL fraud was “shocking” and has “created a roadblock to the level of risks and the image of the financial system in the country”.

Cunningham was also among those who feel that “Government needed to have moved earlier to address the situation, given that there were red flags that all was not well at the company”.

Meanwhile, the US Federal Bureau of Investigations (FBI) continues to be tight-lipped about its role in the investigations, telling the Observer: “We appreciate you reaching out; however, we do not have a comment. In keeping with Department of Justice standard practice, we neither confirm nor deny the existence of an investigation.”

But Jamaican-born former FBI agent Wilfred Rattigan believes that “politicians and others in high places could regret any involvement by the FBI in the investigations at SSL Ltd, given that such involvement will be thorough, professional and fair”.

Rattigan said while the scope of the involvement of the FBI in the investigations is not immediately known, “it will certainly look to determine if there are any connections with the missing funds and the United States”.

“If any of those funds entered or passed through the US, then the FBI, through what is known as the Swift Banking System, would have jurisdiction to dig deeper into the matter. They will follow the tentacles of the trail wherever they lead, not only from a US perspective but beyond if necessary,” he told the Observer.

“Once they begin looking, they will leave nothing undone,” added Rattigan, now a practising US attorney. “They may uncover information that could likely implicate people in high places.”