Financial Services Commission (FSC), the government’s regulator, is pushing for the closure of corruption riddle investment firm Stocks & Securities Limited (SSL), as it claims there isn’t enough money for it to pay its debts.
Based on findings from the Temporary Manager for SSL, Kenneth Tomlinson, who the FSC appointed seven days after receiving reports of a multibillion-dollar fraud, the FSC believes SSL is insolvent and is seeking a wind-up under the Companies Act.
According to The Sunday Gleaner, SSL had assets of $1.1 billion and liabilities of $1.2 billion as of January 31. For the year so far, losses totalled $184 million, and negative equity was around $30 million. Total loans amounted to $623 million.
Moreover, an investigation conducted by this newspaper has revealed that $29.2 billion of assets discovered off-balance sheet covers the original investments of 8,000 active clients of the struggling 50-year-old firm.
There is no information on whether the money that allegedly disappeared from at least 40 clients, including sports legend Usain Bolt, is included in this investigation. Fraud allegations date back at least 13 years.
As a result of some of the findings, the FSC is seeking permission from the Supreme Court to wind up or liquidate SSL. Early in March, an application was filed.
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A declaration of solvency was made by SSL’s directors when the company filed for a member’s voluntary wind-up in January, prompting the FSC to push for a winding up of the company. As a result of the application “not conforming to the provisions” of the law, it was rejected by the Companies Office.
