Financial Crime World

Jamaica: Financial Regulators Crack Down on Stock and Securities Limited Following Massive Employee Fraud

Kingston, Jamaica - January 20, 2023

Financial regulators in Jamaica have issued enhanced oversight directives against Stock and Securities Limited (SSL) following allegations of massive employee fraud. The company’s internal investigation uncovered irregularities believed to be fraud by at least one former employee.

Alleged Fraud Scheme

  • A wealth advisor at SSL allegedly siphoned off millions of dollars from investors’ accounts, affecting over 20 high-value clients.
  • Notable client Usain Bolt, a retired sprint legend, lost over US$12 million in stocks and bonds due to the fraud.

Company Response

  • SSL’s internal investigation initially tried to resolve the matter internally before discovering the scale of the fraud.
  • The company has referred its findings to law enforcement authorities and vowed to cooperate fully with the investigation.
  • SSL has been ordered by the Financial Services Commission (FSC) to stop issuing funds to clients or accepting new deposits until further notice.

Regulatory Actions

  • The FSC appointed Kenneth Tomlinson of Business Recovery Services Limited as a special auditor to examine SSL’s operations.
  • The company’s assets have been secured, and internal protocols have been strengthened to detect suspicious activity.

Background Information

  • SSL has faced regulatory scrutiny before:
    • In 2013, the FSC limited some activities of the company.
    • In 2020, it prevented SSL from accepting new investments.
  • The securities dealers sector in Jamaica reported an asset base of JM$650.6 billion (US$4.3 billion) in 2019.

Ongoing Investigation

  • Usain Bolt’s manager confirmed that he lost over US$12 million in stocks and bonds to the fraud.
  • SSL has been given 10 days to return the money or face civil and criminal proceedings.
  • Prime Minister Andrew Holness may have been affected, according to some speculations due to comments he made about using funds from his SSL accounts. However, this remains unclear.

Client Assurance

  • SSL assures its clients that only a small percentage of accounts were affected by the fraud.
  • Those affected will be contacted individually.
  • The company is cooperating fully with the investigation and vowing to ensure that the responsible party faces the full consequences of the law.