Financial Crime World

Examples of Financial Fraud in Jamaica: A Look Back at Infamous Cases

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As the Stocks and Securities Limited (SSL) fraud saga continues to unfold, Jamaicans are left wondering what’s next. But this isn’t the first time financial scandals have rocked the nation. Here are some infamous cases that reflect on the island’s history of financial fraud.

The Cash Plus Scandal (2002-2009)

  • Cash Plus Limited emerged in 2002, promising investors a 120 percent return on investment.
  • Led by Carlos Hill, the company drew thousands of investors before the Financial Services Commission (FSC) issued a statement in 2007 requiring Hill to disclose his assets.
  • By then, investors were realizing they wouldn’t be getting their returns. Hill was arrested in 2008 and formally charged with fraudulently inducing people to invest in 2009.
  • Eight years later, he was freed of all charges due to lack of evidence.

The Olint Investment Scheme (pre-2006)

  • David Smith started the Olint Investment Scheme in Jamaica before it was shut down by the FSC in 2006.
  • Smith reportedly used investors’ money to fund his lavish lifestyle and admitted it was a Ponzi scheme.
  • Over 6,000 investors across the US and Caribbean lost over $220 million.

World Wise Partners (2007)

  • In 2007, World Wise Partners emerged, promising a 200 percent yearly return on investment.
  • Thousands joined, only to lose over $200 million when the FSC served the company with a cease-and-desist order.
  • Noel Strachan, the mastermind behind the scheme, and his family fled to the US before authorities could catch up.

The Loom Scheme (2018)

  • In 2018, the Loom scheme promised investors up to 300 percent earnings on investments.
  • Using social media and WhatsApp to attract customers, the operators invited people to invest at least $5,000, promising returns of up to $20,000 after a week.
  • The FSC issued warnings about Loom, but it was too late for many who lost thousands.

Andrea Gordon’s Fraud (2020)

  • Andrea Gordon, a former senior manager at National Commercial Bank, pleaded guilty to stealing approximately $34 million from the bank in 2020.
  • She used the money to fund her lifestyle and construction work on her house.

The Dangers of Partner Plans

  • Partner plans have been popular among Jamaicans, with many making a decent living using this informal way of saving.
  • However, the dishonesty of some members often leads to huge sums of money being lost. The courts have seen several cases of members taking all deposited cash and cutting contact with depositors or lending money outside the plan.

Conclusion

These cases serve as a reminder of the importance of vigilance in financial matters. Jamaica needs to stay proactive in preventing and prosecuting financial fraud to ensure the safety and security of its citizens. By learning from these examples, we can work towards creating a more secure financial environment for all.