Elder investors sue after investment disappears in Mexican copper mine firm

Two senior citizens are at a loss as to how their US$87,000 investment, which was intended to be in a financial institution in Jamaica, vanished in a copper mine company in Mexico, leaving them with no choice but to fight a legal battle in the Supreme Court to recover the amount with interest.

Scotiabank customers Percival Gager and his wife Polly, who are pensioners, are contending that, in 2011, Gager went to the Mandeville branch of Scotiabank, where he was invited by a representative of the bank to invest US$50,000 in Scotia Investment Jamaica Limited (SIJL).

They later discovered that the money was invested in a Mexican copper mine company and, despite attempts to recover the funds from SIJL, they have not been successful.

In the lawsuit filed on Tuesday against the defendant, SIJL, they are contending that the money was invested in the copper mine company without their knowledge and the impression given was that the money was being invested in SIJL.

Gager, who is a farmer from Trelawny, said he was a customer with the Mandeville branch for over 30 years.

He stated that, in 2011, he was “induced or enticed” by one Mrs Dwyer-Powell, an authorised servant, agent or employee of the bank or SIJL or both to invest and convert the net proceeds from his savings account to US$50,000 with SIJL at an attractive interest rate of 10.75 per cent. He later discovered that it “turned out to be an unauthorised investment in a Mexican copper mine company named Cobre Del Mayo (CDM)”. They have blamed the defendant for putting their money in an extremely risky investment.

Assured investment would be safe

Gager said the SIJL servant or agent further represented and assured him that the said initial investment was safe or would be safe with SIJL for five years maturing in 2016.

He said in 2014, he sold a property in St Catherine and deposited the money in the bank. Another US$27,000 was subsequently invested in 2015 as he was enticed by the agent to do so.

In 2016, Gager said the agent further enticed him to roll over the principal sum at 8.75 per cent for another five years with SIJL knowing or ought to have known that the funds would be invested in CDM without the prior knowledge and or approval of the claimants.

“Upon maturity of the said investment, SIJL failed and/or neglected and/or refused to pay the claimants the principal sums plus interest,” they disclosed in the claim form.

The money was to mature in November 2021 but the claimants stated that from as early as May 2021, Dwyer-Powell made numerous calls encouraging them to roll over again but Gager stated that he informed her that he was not active as before and needed the money to sustain his living condition.

Gager disclosed in court documents that the defendant sought to persuade him to roll over again and even offered to pay him US$2,000 per month if he decided to roll over but he declined the offer.

Financial difficulties

One of their contentions is that the defendant invested their money in a Mexican company that was experiencing financial difficulties and was already in default under its banking covenants and therefore would likely be in cross default under the notes in which the claimants invested.

On November 21, 2021 when Gager turned up at the bank in Mandeville to collect payment, to his amazement he was told that there was no record of the investment at all and Dwyer-Powell was no longer working at the bank. Gager said after the employee dropped the “bombshell”, she got up and left her desk without any further explanation, leaving him sitting stunned in the chair.

The claimants said at all material times they were led to believe that each or both of them had invested their funds in SIJL and had no knowledge that the funds were invested in CDM.

The claimants are contending that, as a consequence of the alleged failure, neglect and breach of contract by SIJL, they have suffered loss, damages and incurred expenses.

They are seeking to recover special damages of US$112,000. General damages include emotional distress which the claimants say amount to US$100,000. In addition they are claiming general damages for negligence, fraudulent misrepresentation and breach of contract.

Senior attorney-at-law Anthony Williams, instructed by the law firm Usim Williams & Co, who is representing the couple, filed the claim on their behalf on Tuesday.

editorial@gleanerjm.com