Financial Crime World

Jamaica’s Financial Fraud Scandals: A Look Back at Some of the Island’s Infamous Cases

======================================================

Jamaica has a long history of financial fraud scandals that have left investors with significant losses. In recent years, the revelations surrounding Stocks and Securities Limited (SSL) have raised concerns about the island’s financial stability. This article takes a look back at some of Jamaica’s most infamous cases of financial fraud.

Cash Plus Limited: A 120% Return on Investment Scam

One of the most notable cases is that of Cash Plus Limited, led by Carlos Hill. The company promised investors a 120% return on investment, but by 2007, the Financial Services Commission (FSC) had issued a statement requiring Hill to disclose details about his assets. Investors began to realize that they would not receive their returns on time, and Hill was arrested in 2008.

  • After eight years of court delays and bail extensions, prosecutors revealed in November 2016 that several witnesses in the fraud case against Hill could not be located, resulting in his freedom due to a lack of evidence.
  • Investors with Cash Plus never received payment on monies lost in the multi-billion dollar investment scheme.

Olint Investment Scheme: A Lavish Lifestyle Funded by Fraud

Another infamous case is that of Olint Investment Scheme, launched by David Smith in Jamaica before being shut down by the FSC in 2006. The scheme reportedly funded Smith’s lavish lifestyle and defrauded approximately 6,000 investors across the United States and the Caribbean of over US$220 million.

  • Smith was sentenced to 30 years in prison in the United States after pleading guilty to several counts of money laundering, wire fraud, and conspiracy.
  • He was later sent to the Turks and Caicos Islands, where he received a six-year sentence for fraud and conspiracy.

World Wise Partners: A Cease-and-Desist Order

World Wise Partners emerged in 2007, promising investors a 200% yearly return on investments. However, the FSC issued a cease-and-desist order after investors lost over $200 million.

  • The operator of World Wise, Noel Strachan, and his family had migrated to the United States before the order was served.
  • No further action was taken against Strachan or his family.

In recent years, Loom has become another popular get-rich-quick scheme in Jamaica, promising up to 300% earnings on investments. However, the FSC issued warnings about Loom, and many investors lost thousands of dollars after the scheme collapsed.

  • The FSC continues to warn investors about the dangers of these types of schemes.

Andrea Gordon: A Senior Manager’s Fraud

A former senior manager at National Commercial Bank, Andrea Gordon, pleaded guilty to stealing approximately $34 million from the financial institution. She was sentenced to seven years and six months in prison for fraud.

  • The case highlights the importance of internal controls and oversight within financial institutions.

Finally, partner plans have become a popular way for Jamaicans to save money informally, with each member contributing an agreed sum periodically and receiving a “draw” in return. However, many of these plans collapse due to the dishonesty of a member, resulting in huge sums of money being lost.

  • These cases serve as a reminder that financial fraud is a significant problem in Jamaica, leaving many individuals and families struggling to recover from losses.
  • As the country moves forward, it’s essential to learn from past mistakes and implement measures to prevent such scams from occurring in the future.