FSC investigating Warner Media Ponzi

TheFinancial Services Commission (FSC) says it has launched an investigation into the Warner Media Ponzi scheme in which thousands of Jamaicans have reportedly lost billions.

On Tuesday, the FSC said that it is aware of allegations in the public domain, including but not limited to social media platforms, surrounding Warner Jamaica Media Limited, and has initiated an investigation into the entity.

It said it will also be collaborating with other law enforcement bodies in instances where there are indications of fraud and money laundering. The Jamaica Constabulary Force’s Fraud Squad and the Financial Investigations Division (FID) undertake investigations in two broad categories of financial crime matters, namely criminal and civil investigations. Their main function is to investigate offenders for money laundering and to recover tainted property, viz, instrumentality or proceeds (benefits) of crime.

Depending on the nature of the financial crime, the two organisations will collaborate on investigations into alleged fraudulent activities. But from time to time, the FSC also leans on the expertise of the Major Organised Crime & Anti-Corruption Agency (MOCA) and the Jamaica Cyber Incident Response Team, which is a division under the Office of the Prime Minister formed to address matters regarding cyber threats.

It also wants victims of the ponzi scheme to report the matter.

“The FSC is therefore encouraging members of the public who have investment funds with the entity and/or have knowledge of the entity’s operations to contact the FSC atcomplaints@fscjamaica.orgor at 876-906-3010-2,” it said in a press statement.

The FSC has regulatory oversight of Jamaica’s insurance, pension and securities industries under the Financial Services Commission Act.

It stated that Warner Jamaica Media Limited (otherwise called “Warner Media”) is not licensed by the FSC under the Securities Act, or any other law, in any capacity, adding that any “opportunity” which involves investing or contributing an initial sum with a promise of returns on investment amounts to securities business must be licensed by the FSC.

“The failure to be licensed is a breach of the Securities Act and a criminal offence,” it said.

The FSC has not disclosed if it is investigating any other public frauds, as it deems that as sensitive information, but on the institutional side, investigations are still ongoing into the Stocks and Securities Limited (SSL) fraud probe.

The latest public update on the alleged fraud first uncovered in January 2023, is that it has ballooned past US$30 million, or approximately J$4.7 billion, with more than 200 client accounts impacted.

Jamaican track and field icon Usain Bolt and octogenarian Jean Forde are among the victims of the alleged fraud.

The FID said the SSL probe involves a comprehensive examination dating back to the inception of the firm in 2006. The agency said its findings reveal “potential” criminal and regulatory breaches involving both the company and individuals associated with it.