FSC loses control of fraud-hit SSL
KINGSTON, Jamaica — The Financial Services Commission has lost its battle to maintain control of fraud-hit Stocks and Securities Limited (SSL).
Supreme Court Justice David Batts on Friday ordered appointee Caydion Campbell to take control of the firm which cannot be tried for criminal proceedings without the court’s approval.
Campbell had been unable to carry out any of his functions since the FSC intervened and has had to remain on the sidelines.
“We are clearly very happy for not just our client whose reputation and even his integrity and competence were challenged by the litigation by implication but we are also very happy for the creditors and other persons who were affected by this unnecessary litigation and I think that it is a wonderful addition to the jurisprudence of the region,” said Caroline Hay, attorney-at-law for Campbell, following the court ruling.
“I anticipate it will assist regulators with determining where are the appropriate bounds and improve the understanding of how regulatory legislation and the Companies Act and other legislation work together especially when a corporate body is in distress,” Hay added.
Hay went on to say that she is particularly happy with the court’s decision provided that SSL employees and stakeholders may have suffered tremendous reputational damage as a result of the ongoing scandal.
“I also feel a lot of happiness for the good people who worked at SSL, the employees, the stakeholders there who did their best to keep this going and who may have themselves suffered reputational damage. I am so happy for them,” she said.
SSL is the private investment firm at the centre of a $5-billion fraud, the victims of which include legendary sprinter Usain Bolt.
The ruling is the second blow the FSC has received in a matter of months. The FSC took temporary management of SSL on January 17, 2023 but lost a bid to amend a lawsuit against SSL in March. At that time, the FSC had attempted to include a claim that two former directors signed a declaration of solvency after their resignations in January 2023.
