Financial Crime World

Jamaica’s Shameful Scams: A Look Back at the Island’s Infamous Financial Fraud Cases

As the ongoing Stocks and Securities Limited (SSL) scandal continues to unravel, many are left wondering what’s next for this beleaguered country. But Jamaica is no stranger to financial fraud, with a history of scams that have left investors reeling and regulators scrambling to keep up.

Cash Plus Limited: A Case Study

One of the most infamous cases is that of Cash Plus Limited, led by Carlos Hill who promised investors a 120% return on their investments. By 2007, however, it was clear that something was amiss, and Hill’s assets were frozen by the Financial Services Commission (FSC). Despite being arrested in 2008, Hill wasn’t charged until 2009 with fraudulently inducing people to invest. Eight years later, he was acquitted due to a lack of evidence, leaving thousands of investors without their money.

Olint Investment Scheme: A Global Scandal

Another high-profile case is that of Olint Investment Scheme, led by David Smith who launched the scheme in Jamaica before moving it to the Turks and Caicos Islands and the United States. The FSC shut down the operation in 2006, but not before Smith had defrauded an estimated 6,000 investors out of over $220 million. Smith was sentenced to 30 years in prison in the US, although he only served 24 due to a concurrent sentence in the Turks and Caicos Islands.

Recent Scams: World Wise Partners and Loom

More recently, World Wise Partners emerged as an unregulated investment scheme promising a 200% yearly return on investments. But when the FSC issued a cease-and-desist order, Noel Strachan and his family had already fled to the US. Despite promises from the DPP that Strachan would face fraud charges, it’s unclear if he was ever officially charged.

In 2018, Loom swept across Jamaica, promising investors up to 300% earnings on their investments. But when the FSC issued warnings about the scheme, Loom suddenly stopped operating and many investors lost thousands of dollars.

Embezzlement: A Shocking Case

And in a shocking case of embezzlement, former NCB manager Andrea Gordon pleaded guilty to stealing $34 million from the bank. Investigations revealed that Gordon transferred money to her personal accounts, as well as those belonging to customers, and used it to fund her lifestyle and construction work on her house.

Finally, there’s the issue of partner plans, popular among Jamaicans but often plagued by dishonesty. When a member takes all the deposited cash and cuts contact with the others, the consequences can be devastating.

Lessons Learned

As Jamaica grapples with its latest financial scandal, it’s clear that the island has a long way to go in terms of preventing and punishing financial fraud. But by examining these past cases, perhaps we can learn from our mistakes and build a more honest and transparent financial system for the future.

  • Preventing financial fraud requires a combination of effective regulation, robust oversight, and public awareness.
  • Punishing those who engage in fraudulent activities is crucial to maintaining trust in the financial system.
  • Building a culture of transparency and accountability within financial institutions can help prevent embezzlement and other forms of fraud.