First major trial since uncovering of SSL fraud delayed

An undisclosed issue has delayed the start of the Supreme Court trial in which the Financial Services Commission (FSC) is challenging the appointment of a trustee to dissolve the fraud-hit Stocks and Securities Limited (SSL). 

The case, which was due to get under way today before Justice David Batts, has a new start date of February 26. 

The indication that the trial would not proceed came shortly after government lawyer Lisa White announced the parties involved in the matter. 

After that, King's Counsel Caroline Hay, who represents the second defendant and trustee Caydion Campbell, told the judge that there were "matters arising in the case" that required discussion. 

The lawyers and the judge then met in chambers, where issues discussed are not public. 

When the parties returned to open court, Justice Batts announced that the trial was being pushed back. 

The FSC, which regulates certain financial institutions such as investment houses, filed a claim against SSL, the first defendant, on January 23, 2023, alleging that SSL breached several provisions of the FSC Act. 

The FSC had issued directions to SSL on January 12, which required that the FSC approve all transactions and further that SSL and its officials not take any action involving the company's assets. 

The FSC claims that SSL breached the law by convening an extraordinary general meeting, board meeting and directors' meeting on January 16 and later approving and filing a special resolution with the Companies Office of Jamaica which appointed Campbell and authorised a members' winding up of SSL.

Campbell's purported appointment on January 16, took place one day before the regulator took temporary management of the investment firm.

The regulator wants the court to declare that Campbell's appointment was null and void. 

However, Campbell has insisted that he was properly appointed, which if accepted by the court, would dislodge the FSC's role in SSL.

Campbell argued in court documents that the FSC was fully aware of SSL's decision to appoint him as a trustee. He said concerns raised by the FSC that funds may not be recovered if he is allowed to operate were unfounded. 

An injunction has been in place blocking Campbell or any SSL official from dealing with the company's assets until the case is settled.

All other court cases involving SSL arising out of the alleged fraud have been put on hold until the trusteeship issue is resolved. 

SSL reported a fraud on January 10, an investigation that so far involves over 200 client accounts and approximately $5 billion. 

Sports star Usain Bolt is among the affected investors. 

Former SSL Client Relationship Manager Jean-Ann Panton is the only person charged in the case so far. 

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