Mon | May 29, 2017

Carmax placed into receivership

Published:Saturday | April 25, 2015 | 4:00 AM

A customer has obtained a Supreme Court order which places Carmax Limited, the car dealership company which allegedly owes customers more than $100 million, into receivership.

The assets of its directors, Darren Blake and Ian Lyn, are also in receivership.

An application for receivership was made by customer Roderick Byles, an auto broker and performance-car tuner, who claimed he delivered a car to the company to be sold. Blake claimed that the car was sold, but the money was not paid over.

Attorney-at-law Conrad George who is representing Byles, told The Gleaner that following the order made yesterday, insolvency practioner Ken Tomlinson was appointed receiver.

Supreme Court Judge Bertram Morrison granted the receivership order as well as orders for injunctions against the company and the two directors after hearing submissions from George and attorney-at-law Adam Jones in an ex parte application.

Blake is facing fraud charges in the Corporate Area Resident Magistrate's Court arising from the alleged non-payment of over $100 million to customers for the sale of motor vehicles. The police issued a report this week that Lyn is wanted in relation to the alleged fraud. Blake has been remanded in custody and is facing 88 counts of fraud amounting to over $161 million. He is to return to court on May 1.

 

Must disclose assets

 

The court orders yesterday restrain the three defendants from disposing of or transferring their assets; however, the order allows each defendant to dispose of assets to the extent of $2.5 million.

Morrison has ordered that the defendants, after being served with the court order, must file within seven days, affidavits disclosing their assets locally and abroad.

Blake is also restrained from leaving the island for the next 28 days and is to deliver his travel documents to the police. The restraining orders remain in effect until May 15, when it is expected that the parties will appear before the Supreme Court for a hearing.