JAMAICA | Justice David Batts Returns SSL to Trustee Caydion Campbell

KINGSTON, May 31, 2024 - Supreme Court Justice David Batts on Friday ordered that government regulator Financial Services Commission no longer has control of embattled investment firm, Stocks and Securities Limited (SSL).

Justice Batts’ written ruling  ordered SSL's appointed trustee, Caydion Campbell to take full control of the fraud-hit firm, under the supervision of the court.

This morning's judgment represents a big blow to the Financial Services Commission's efforts to cauterise the situation at SSL.

The FSC sued SSL and Mr. Campbell last year, claiming that his appointment was in breach of directives and an attempt to frustrate the investigation of the multibillion-dollar fraud.

But the court's ruling indicates that Mr. Campbell's appointment was valid.

The Supreme Court says there is to be a stay of all pending or other proceedings against SSL and no suit action or other proceedings including criminal proceedings, shall be proceeded with or commenced against SSL unless the court's permission is obtained.

The FSC, which regulates investment houses, also argued that SSL's solvency declaration was flawed because it did not accurately represent the company's financial status and did not account for the fraud reported at the agency on January 10, 2023.

SSL directors appointed Mr. Campbell as trustee on January 16, 2023 to pursue a reorganisation of the company through voluntary winding up under the Companies Act.

A trustee is a person or firm that holds and administers property or assets for the benefit of a third party or beneficiary. Their work involves validating claims from creditors, customers and investors.

The FSC filed a lawsuit on January 25, 2023, after becoming aware of the move.

 It took temporary management of SSL on January 17, 2023, claiming that Campbell's appointment was in breach of directives and an attempt to frustrate investigation of the multibillion-dollar fraud. 

The FSC, which regulates investment houses also argued that SSL's solvency declaration was flawed because it did not accurately represent the company's financial status and did not account for the fraud reported at the agency on January 10, 2023.

The fraud case  ballooned to over $5 billion, with sports legend Usain Bolt among the affected clients.

-30-