Caydion Campbell, trustee of Stocks and Securities Limited (SSL), has set October 25 as the first meeting of creditors and claimants to hammer out the way forward for the fraud-hit company.

The meeting will allow for SSL creditors and claimants, including SSL clients, to learn the details of Campbell’s report to the Supreme Court and three additional applications made by the trustee to the court. One of those applications is for a fee between five to 10 per cent to be applied to client accounts to cover the costs incurred by the Financial Services Commission’s (FSC) temporary management between January 2023 to May 2024.

Five classes of creditors and claimants have been identified in the winding up of the SSL estate, which include unsecured creditors, unaffected trust claimants (SSL clients not affected by fraud), affected trust claimants (contingent creditors), temporary management claimants, and equity claimants. The meeting will be held by Summit (formerly Knutsford Court Hotel) at 10 am and on a dedicated streaming platform. Persons that want to attend the meeting have to make contact with Campbell to gain access. In order to vote at this meeting, a proof of claim form would have had to be submitted prior to it being kept. Proxies can be appointed for the meeting.

Campbell regained control of SSL at the end of May when Justice David Batts ruled against the FSC’s stance and ended its temporary management of the firm. The FSC has since appealed that ruling to the Court of Appeal.

Since then, Campbell has begun disbursing the proceeds of the international securities portfolio which totalled more than US$30 million. However, those proceeds have been subject to a 5-10 per cent fee which results in a range of US$1.5 million to US$3 million retained by SSL.

At the September 26 court hearing, the FSC requested Justice Batts seal the trustee report due to the contents contained in it. The report was submitted a day before the hearing which gave the FSC limited time to review the contents. However, whatever it saw before the court session was enough for the regulator to ask that it not be released to the public.

Justice Batts indicated that he would entertain the FSC’s application to seal the report at the hearing to be held tomorrow at 10 am. He also requested that both parties to limit their public commentary on SSL matters until the hearing.

The SSL saga, which was revealed in January 2023, has taken several twists and turns with the Financial Investigations Division (FID) noting that other fraudulent schemes were uncovered at SSL during the course of their investigation. Over 200 SSL client accounts have been affected by fraudulent events at the firm which exceeds US$30 million or $4.7 billion.

One notably affected client is WellJen Limited, a holding company connected to Usain Bolt, whose account was reported to have been defrauded by more than US$12 million, but investigations revealed only US$6.1 million being identified as entering the firm with no subsequent discoveries of investments being made.

Bolt, through his attorney Linton Gordon, made an impassionate plea through a Jamaica
Gleaner story last Thursday for an update on the SSL matter. WellJen and Jean Elizabeth Forde brought claims against SSL and other SSL principals in the Supreme Court, but that case is stalled due to a ruling by Justice Batts. As a result, Bolt had no knowledge as to new developments taking place to bring justice to him and other SSL clients.

“I have been informed that, since that time, the FID and ODPP have met on several occasions, including within the last month in regards to the review of the comprehensive and voluminous SSL investigative file. Among other things, the ODPP has recommended that the FID collects three further statements, the process of which has already commenced,” said the Minister of Finance Dr Nigel Clarke in a release last Thursday in response to the Bolt story.

One of the former SSL principals is reported to be residing in Canada at the moment while other former SSL executives are continuing to operate as normal.

“I understand the frustration and the desire for tangible results. I share these feelings too.

“However, I ask the public to reflect on the fact that there can be no better demonstration of transparency in this matter than our decision to procure the services of an international forensics audit firm to support an independent and thorough investigation as we have done. I appeal with the public to continue to exercise patience as the independent constitutional authority carries out a diligent and meticulous review of the SSL investigative file so that culpable persons may be held to account,” Dr Clarke concluded.