WellJen and FSC back in court

STOCKS and Securities Limited (SSL) was back in court on Tuesday as two victims seek recourse against the company, its executive, and directors, while Financial Services Commission (FSC) is continuing its pursuit to have full and exclusive powers over the fraud-hit firm.

A case management conference, held via video conference, was heard at 3:00 pm before Justice Cresencia Brown Beckford surrounding the lawsuits filed by WellJen Limited, a holding company connected to sprint sensation Usain Bolt, and Jean Elizabeth Forde against SSL and 10 other defendants. Both WellJen and Forde are out US$13.58 million that cannot be accounted for by the firm, which has been the subject of a multijurisdictional investigation since January 2023. Over 200 accounts have been affected to the tune of US$30 million, according to Financial Investigations Division (FID).

While the details of the conference are not immediately known, the gravity of the situation hasn’t diminished as other parties continue to wait on the FSC’s open court case to be resolved. The case, which was to have been heard on February 6, will instead get underway next Monday as the FSC seeks to ensure its authority over SSL is not overturned and that Caydion Campbell is not appointed as trustee. The FSC instead wants SSL’s temporary manager Kenneth Tomlinson, head of Business Recovery Services Limited (BRSL), to be the trustee of the firm which it intends to wind up according to court documents.

SSL is also the subject of other lawsuits by Deborah Franz, Mae Elaine Tapper, Jamaica Small Loans and Microfinancing Limited (t/a Boost Financial Services), and Robin De Lisser.

SSL selling international portfolio

Following several months of deliberations with international partners, the international securities of SSL clients will be sold and remitted to their accounts at a later date. Numerous clients had approached SSL in the past to invest in international securities such as stocks on the Nasdaq and bonds from numerous sovereign and corporate entities. This will be a blow to clients who have been unable to determine the value of their international holdings which were held in SSL’s name under an omnibus account. These were held on behalf of their clients’ beneficial interest.

“After exploring all possible solutions and considering the cross-border nature of these assets, the decision has been made to liquidate the international portfolio and remit funds directly to clients as soon as the reconciliation process is complete,” said BRSL in its February 16 update to the public.

It was also revealed that an additional $4 billion of local securities such as stocks and bonds have been transferred in the last month, with the total value of local client assets transferred to date being $14.5 billion. An additional $62 million in cash has also been transferred in the last month, with the total amount now remitted to over 200 clients being $626 million.

However, with there being a further reduction in activity at SSL, there will be additional changes to take place in the coming weeks. The first change is that SSL will no longer process local securities as of February 29 for those who have not put their request in as yet. Further instructions will be provided for those who haven’t submitted a request but the firm will continue processing cash transfer requests.

The processing of SSL-related promissory notes will be dependent on the status of the SSL Group, which is still involved in legal matters. SSL will also be moving its offices to 11 Connolley Avenue, Kingston 4, the same address as BRSL, effective February 26. The company’s current 33½ Old Hope Road property is owned by SSL Number 4 Limited, a St Lucian international business company. The commercial property is being marketed at US$14,500 per month by Jamaica’s Sotheby’s International Realty. BRSL intends to provide an additional update by March 31 to clients and the wider public. SSL is still licensed by the FSC as a securities dealer.