Fake jobs, bogus invoices

A domestic helper unknowingly employed by the Ministry of Education is among the key allegations in the $25-million fraud case involving former Education Minister Ruel Reid and former Caribbean Maritime University (CMU) President Professor Fritz Pinnock.

The prosecution outlined its case in the Kingston and St Andrew Parish Court on Thursday, describing a complex alleged conspiracy to siphon public funds through fraudulent contracts, sham employment, and bogus invoices between 2016 and 2019.

Lead prosecutor Ashtelle Steele told the court that the helper, hired to work in the Reid household, had no idea she was on the ministry’s payroll. The prosecution alleges that Reid, his wife Sharen, and daughter Sharelle arranged for her to be paid through the ministry. The family reportedly helped her open a bank account and retained control of her ATM card to access the funds.

Steele said the Crown intends to present evidence that this was part of a broader scheme through which Reid, his family, Pinnock, and Jamaica Labour Party Councillor Kim Brown Lawrence conspired with others to defraud the Ministry of Education and the CMU.

“The Crown will seek to show how the accused, particularly Mr Reid and Pinnock, used their roles as public servants to mastermind and effect the fraudulent activities for which they are before the court,” she said.

“The Crown will seek to lead the following, to include but not limited to the following: the position of all of these persons, and their roles; individuals being paid regularly by CMU, with these individuals not knowing that they were being paid by CMU; invoices or vouchers of goods and services being generated under circumstances where individuals being paid did not generate same, and that they did not at any time provide these goods and services,” she added.

Furthermore, no verification checks were carried out before funds were disbursed, the court heard.

The prosecution plans to call 92 witnesses during the trial, which begins on Thursday. Key evidence includes banking records, text messages, and testimony tracing the flow of funds into accounts controlled by the accused.

In one case, payments were made through CMU to individuals who performed no work.

Similarly, Pinnock, as CMU president, is accused of authorising and facilitating the creation of fraudulent vouchers that enabled the unlawful transfer of funds.

Brown Lawrence is accused of working with Reid and Pinnock to facilitate CMU payments, allegedly receiving money she knew – or should have known – was fraudulently obtained.

The Crown also intends to argue that under the Proceeds of Crime Act, the accused not only received and transferred criminal property, but took deliberate steps to keep control of the funds, sometimes by channelling them through third parties or receiving cash directly.

All five accused face conspiracy to defraud charges. Reid and Pinnock are also charged with acts of corruption. Reid, his wife, daughter, and Brown Lawrence are charged with acquiring and handling criminal property. They are also accused of participating in arrangements to retain those assets.

The allegations were presented after Senior Parish Judge Sanchia Burrell granted the indictment, rejecting objections from Pinnock’s attorney, Hugh Wildman. Wildman argued that statements used to support the case were unlawfully obtained and should not form the basis of the indictment.

The judge also denied a request from the defence for more time to review documents, despite complaints of late disclosure of voluminous material.

tanesha.mundle@gleanerjm.com