Stocks and Securities Limited Fraud Investigation Progressing – Dr. Clarke

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says the Stocks and Securities Limited (SSL) fraud case investigation is progressing.

“The magnitude of the case has warranted a long and thorough investigation. A file was submitted to the Office of the Director of Public Prosecutions by the FID (Financial Investigations Division) for the consideration of criminal charges against individuals, and the DPP is doing her job; and I think that Office has publicly stated that they will make a ruling at some point,” Dr. Clarke said during his opening presentation in the 2024/25 Budget Debate in the House of Representatives recently.

Dr. Clarke said the engagement of American financial and advisory firm, Kroll, was critical to the investigations.

He noted that they undertook an independent forensic audit to discern the facts relating to the fraud perpetrated at Stocks and Securities Limited over the period 2010 to 2023.

“The company was selected because it did not have any connection in Jamaica and because of the complexity of the matter, the volume of transactions, the number of accounts held by clients and the number of bank accounts held by the SSL network of companies.

“The Kroll team, working with the support of government agencies, including the FID and FSC (Financial Services Commission), utilised technology, data analytics and forensic expertise to produce a comprehensive and independent report of its findings in November 2023. The Kroll Report has confirmed that the suspected fraudulent activity and mismanagement at SSL and its related parties were much broader than initially understood,” the Minister stated.

Dr. Clarke said the investigative authorities now have a much clearer picture of what took place and those involved, adding that they are committed to bringing the persons involved to justice.

“The FID will use all the powers at our disposal to attempt to recover as much of the dissipated funds,” the Finance Minister informed.

Providing details on the fees paid to Kroll, he said the UK provided the equivalent of US$50,000 as an initial retainer for the firm’s engagement, pointing out that the total cost was US$1.2 million which was paid from the Civil Recovery Fund held by the FID.

“In addition to the payment to Kroll, the FID transferred J$100 million from this Civil Recovery Fund to the Consolidated Fund as budgetary support, including support for national security. Kroll was essential to the point where we have something before the DPP,” he said.