There are about 100 complainants, but the Crown has elected to proceed with evidence from nine persons who have deposited about $900,000. The trial began in January 28, this year and will continue on April 8.
AN OFFICE helper yesterday testified at the fraud trial of Winston Munroe, chairman of the Low Income Family Foundation (LIFF) and Lilian Chambers, the company secretary, that despite repeated requests, she did not get back the $60,000 she had deposited on a house.
The office helper, Barbara Gentles, said that she paid the money to LIFF as a first payment on a four-bedroom house, which was supposed to have been built at a cost of $650,000 at Edward Heights, St. Catherine.
Gentles said that at one of the meetings she attended, Attorney-at-law Ronnie Thwaites stated that he was helping to look about the titles for the houses. She said Munroe also assured them that they would get their titles.
Munroe and Chambers are charged jointly with conspiracy to defraud and fraudulent conversion, following complaints from about 400 depositors that they had paid more than $70 million as deposits on houses to be built at Edward Heights.
There are about 100 complainants, but the Crown has elected to proceed with evidence from nine persons who have deposited about $900,000. The trial began in January 28, this year and will continue on April 8.
Paula Llewellyn , Acting Senior Deputy Director of Public Prosecutions, in opening the case before Resident Magistrate Martin Gayle, said that Mr. Munroe and LIFF employed designated agents to disseminate and implement a scheme to provide low income houses at Edwards Heights, St. Catherine. The property comprised 75 acres of land. Keith Edwards claimed he had acquired the land by adverse possession and obtained title to it.
An agreement of sale was made in 1994 with Mr. Munroe and LIFF where the land at Edwards Heights, St. Catherine would be sold for $35 million. A deposit of $19 million was paid by LIFF. The organisation was unable to complete the deal. A sale agreement was prepared with the sale price being $50 million and the previous deposit of $19 million applied to the new purchase price. There was no further payment.
Some cousins of Mr. Keith Edwards are contending that they are beneficiaries to the land in a will made by their grandfather. A suit is pending in the Supreme court in relation to that dispute.
Miss Llewellyn said Mr. Raymond Guy, a structural engineer was contracted on April 29, 1997 by LIFF to provide consultancy and engineering work on the property. Mr. Guy found that the property could only be divided into lots of 3000 square feet and only 450 three-bedroom houses measuring 630 square feet could be erected on the property. Miss Llewellyn said only that number of houses could be built because a significant portion of the property was very rocky and would be very difficult and expensive to provide access by road.
LIFF had members of the scheme through a concept called "sweat equity", cleaning land at Edward Heights. Mr. Guy supervised the building of the foundation for 20 three-bedroom houses and the design of water tanks . Mr. Guy's bill was $21 million but due to LIFF's inability to pay, a two bedroom house and a four bedroom house near Dovecot, St. Catherine owned by LIFF was transferred to Mr. Guy who is still owed $17 million in fees.
The fact of Mr. Guy's report was never disseminated to the membership and up to the year 2000, LIFF and their agents including Munroe and Miss Chambers were still advertising their alleged ability to provide 1000 four-bedroom houses in Edwards Heights and taking deposits on that basis although it would have been impossible to achieve that. Almost all the complainants have been promised four bedroom houses by the LIFF in return for their deposits. Some were given lot numbers. She said even more startling was the fact that basic procedures to lend credibility or efficacy to the feasibility of the scheme had not been adhered to under the 1988 Real Estate (Dealers and Developers) Act because the St. Catherine Parish Council did not give approval for the sub-division and the Local Improvement Act was also breached.
Simone Barrett, a supervisor at the Registrar of Companies said that Munroe was one of the subscribers of LIFF and Chambers was a director. She said LIFF had no share capital so it could not issue shares. She said that LIFF was a non-profit or charitable organisation. She said it was usual that charitable companies like LIFF were supported by subscriptions from members. She said the subscribers were liable for any obligation of the company.
Barbara Gentles, an office helper testified that in June 1993 she went to the LIFF's office on Washington Boulevard, Kingston 20. She paid registration fee of $60 and an initial deposit of $1,000 on her house. She said several times after that she made payments in United States dollars at CIBC (bank) at Half-Way Tree.
She said she attended meetings at the LIFF"s office and Munroe would address the meetings and Miss Chambers would sometimes collect money from the members and issue papers. Munroe, she said assured them at the meetings that they would soon get their houses. Gentles said her four-bedroom house was expected to cost $650,000. On one occasion she said she and other people went to Edward Heights to bush the property. She said she paid over $60,000 on the house as well as US$250 for the land. She told the court that she jointed the LIFF because it provided the opportunity for her as a low income earner to own a house. She said she regarded it as an attractive option. Gentles said she was told that she would benefit from a mortgage and was told that the proceeds from the supermarket would go towards repaying mortgage on the property.
Gentles said that attorney-at-law Ronnie Thwaites was at one of the LIFF meetings she attended. Mr. Thwaites told them at one of the meetings that he was one of the lawyers working with the foundation and would try to get titles for them for the land at Edwards Heights. She said she asked Munroe to return her money but he did not.
Attorney-at-law Dwight Reece is representing LIFF. Attonrey-at-law Ravil Golding is representing Munroe and attorney-at-law Eric Frater is representing Chambers.
