JAMAICA | SSL Fraud now at US$20 Million and 70 accounts - More charges to come

KINGSTON, Jamaica, August 31, 2023 - The Financial Investigations Division (FID) says the massive fraud uncovered at Stocks and Securities Limited (SSL) has ballooned to more than US$20 million or J$3.1 billion.

In a media release, The FID says its ongoing investigation into the SSL fraud has revealed that approximately 70 accounts were affected by the fraudulent activities at the financial institution, up from the over 40 accounts reported in the initial phase.

Its probe has also revealed an entrenched culture of gross mismanagement at Stocks and Securities Limited, dating back well over a decade.

Director General of the FID, Selvin Hay, said the investigators are determined to bring those behind the SSL fraud scheme to justice. 

 Hay  said "It has taken on new dimensions which are wider than first expected," Hay was quoted as saying in the release. "What is being uncovered is that there are approximately 70 affected accounts, this is significantly more than the just-over 40 affected accounts at the initial phase. 

The investigation has also identified other fraudulent schemes at SSL, which has resulted in the misappropriation and/or loss of numerous investors' funds amounting to over US$10 million ($1.5 billion)," Hay noted.

The agency said the investigative process has brought together local regulatory and law enforcement agencies to include the Financial Services Commission and the Fraud Squad.

The investigative process has brought together a variety of local regulatory and law enforcement agencies to include the Financial Services Commission (FSC) and the Jamaica Constabulary Force's (JCF) Fraud Squad. This is strengthened by investigative partnerships with the US-based Federal Bureau of Investigations (FBI) and UK-based forensic accounting and intelligence firm Kroll, as well as relevant member countries of the Asset Recovery Inter-agency Network for the Caribbean (ARIN-Carib).

"The FID is robustly pursuing various lines of inquiry and taking all the necessary steps to lead evidence-based prosecutions in the court at the appropriate time against all guilty parties to include Jean-Ann Panton, the sole accused perpetrator so far," the release said.

Panton, a former wealth adviser at SSL, has been charged with stealing US$10 million and J$90 million from a number of accounts managed by SSL.

Ms Panton has been denied bail and was remanded until December 6.

But Panton, who was charged in February in relation to the fraud, is not the only person who will face the court when proceedings into the matter resume.

"Before the next court date we anticipate the arrest and charge of other actors involved in the multiple fraudulent schemes recently discovered," Keith Darien, the FID's principal director of investigations, noted.

"Prosecuting financial crimes requires meticulous evidence gathering to ensure success in the court and to follow the money so that any illicit funds or assets may be identified, restrained, and recovered. Before the next court date, we anticipate the arrest and charge of other actors involved in the multiple fraudulent schemes recently discovered," he said. 

But he expressed concern that some affected investors have refused to cooperate with investigators, calling their response to emails and phone calls "short of encouraging".

"We continue to appeal to those affected to contact the FID, which is a critical part of seeking justice through the courts," he pleaded. 

Dr Nigel Clarke, the minister of finance, in reacting to the release said the new information shows the commitment to unveiling the full extent of the fraud and the actions to be taken to prosecute those responsible.

"On a number of occasions this year, including in my budget presentation in March of 2023, I outlined the policy position of the Government of Jamaica with respect to the investigation into the SSL matter. And that policy position that I have outlined is to get international help, to leave no stone unturned, and to follow the evidence wherever it shall lead. The release from the FID today is consistent with that policy direction," Clarke declared.

 Last week, the Opposition People's National Party issued a call for the Government and law enforcement officials to provide an update on the status of the investigations into the massive fraud at SSL.

Opposition Spokesman on Finance Julian Robinson said it was important that Jamaicans and in particular, those with monies invested in the company, are kept in the loop about the progress of the investigations.