THE Government said it is yet to recover any of the funds that were swindled from more than 200 accounts at fraud-hit Stocks and Securities Limited (SSL) but said those who were aggrieved can pursue a civil suit at anytime.

The accounts that were impacted by the fraud included retired track and field star Usain Bolt.

In a release Wednesday, Nigel Clarke, Jamaica’s finance minister, outlined that approximately $30 billion was held in SSL’s off-balance sheet portfolio on behalf of clients at the time the fraud came to public attention in January 2023. Most of those assets, Clarke said, have been transferred to the clients who have so far claimed them, but added that funds impacted by the fraud are yet to be retrieved.

“None of the 200 accounts reportedly affected by the SSL fraud have recovered any part of what was lost due to the fraud,” Clarke said in the release.

More than $3 billion was lost from the accounts due to fraud. So far only one person — Jean-Ann Panton — has been charged in relation to the skulduggery, but the finance ministry said more charges are expected to be laid. The Office of the Director of Public Prosecutions (ODPP) is, however, yet to make a ruling on files containing the charges sent to it by the Financial Investigations Division (FID).

Still, while it is yet to recover any of the fraud-hit funds, the FID has been tracing the assets of persons connected to SSL, someone close to the investigation told the Jamaica Observer. It is not clear how many individual assets are being traced or how many persons connected to SSL are the subjects of the files on which the ODPP should rule for charges to be laid. The charges include breaches of the Proceeds of Crime Act, Larceny Act and financial sector legislations.

But Clarke indicated that the investigation will take time and will have to follow a series of steps before any asset can be forfeited on behalf of the disgruntled clients of the boutique wealth management firm that is being wound up by the Government.

“While the tracing of fraudulently obtained assets can begin before the conclusion of court proceedings in the criminal matter, the ‘benefit investigation’, which is integral to the forfeiture and recovery process, can only start after criminal convictions are obtained in connection with the fraud,” Clarke said.

He, however, pointed out that those whose accounts were subject to the fraudulent activities can pursue a civil suit that “can be started at any time”, meaning, even before the investigation is through.

For those who would wait, he said the process to recover assets that were subjected to fraud is guided by the provisions under the country’s Proceeds of Crime Act.

“Any recovery could only come by way of identification and pursuit of the proceeds of the fraud in accordance with Jamaica’s Proceeds of Crime Act (POCA),” Clarke wrote. “As such, the FID, in its role as the asset recovery agency under the POCA, is empowered by law ‘to provide for the investigation, identification and recovery of the proceeds of crime and for connected matters’. The FID is also the enforcing authority under the POCA for the purposes of conducting proceedings relating to criminal forfeiture under Section 5 of the Act and the FID is also expressly authorised to conduct civil recovery proceedings in the Supreme Court,” he added.

The non-recovery of fraud hit assets aside, Clarke said more than $16 billion or about 70 per cent of the Jamaican-dollar denominated assets held in SSL’s off-balance sheet portfolio has been transferred so far to clients. Jamaican-dollar denominated assets include Jamaican equity and fixed income securities and Jamaican dollar cash. This figure does not include funds that were impacted by the fraud.

The breakdown of those transfers, which began in September, show that as at April 16, 2024, some 1,230 client accounts totalling approximately $15.37 billion of local equity and fixed income securities were transferred to accounts specified by these clients. A further $665 million in cash has been paid over to 338 clients.

“For the remaining Jamaican-dollar securities, totalling $7.6 billion in value, the temporary manager is pursuing an agreement with a trust company for the en bloc transfer of these remaining Jamaican-dollar assets which will be held by the trust company in custody for clients. More details will be provided once this agreement is finalised,” he said.

At the same time, it was pointed out that SSL continues to process requests to transfer available cash balances and that clients who are making claims should submit their requests including payment details to the service team, which has dwindled to eight full-time and three part-time individuals from 22 full-time individuals as at September 2023.

As for international assets held on behalf of clients, it was pointed out that 98 per cent has been liquidated as of April 11, 2024. The total portfolio of international assets held by SSL on behalf of clients — being fixed income and other securities — was US$32.8 million.

Clarke reiterated that he will leave no stone unturned in the investigation and that it will follow the evidence wherevere it may lead, especially with an investigation conducted by KROLL Associates UK Limited, a renowned international investigations firm, confirming “that the suspected fraudulent activity and mismanagement at SSL and its related parties were much broader than initially understood”.

The court case so far is seeking to see if the Government, through the temporary manager has authority over SSL or if the former principals of SSL through a trustee has authority over the company.

After a hearing on December 20, 2023 and pre-trial review on January 18, 2024, the trial commenced on February 26, 2024, with the next hearing scheduled for April 29, 2024.

Although the Government said those impacted by the fraud can sue SSL to recover any funds that were lost, no suit can take place until after the court determines if the Government or the former SSL principals has authority over the company.