By Halshane Burke
The Board of the fraud-hit Stocks and Securities Limited (SSL) broke its silence today, refuting what it calls "damaging inaccuracies" circulating in relation to the fraudulent activities unearthed at the company and the subsequent investigations.
In a seven-page statement, the company sought to clear the air in relation to pronouncements concerning actions to wind up its operations and the mixing of client funds with those used for the day-to-day running of the company.
As the spotlight remains fixed on SSL and the actions of its principals and employees, the Financial Services Commission (FSC) obtained an injunction blocking any attempt by the company appointed trustee to wind up the company.
The injunction is to remain in effect until Friday, February 17, blocking any interference with the ongoing probe, any attempt to deal with funds of clients or to close the company.
But SSL says there were no plans to wind up the operations of the company with the appointment of a trustee. The entity points out that the intention was for an Independent Business Review to be conducted to determine the financial health of the company as at January 16.
It says the trustee would have preserved the assets of the company while ensuring that the directives of the FSC are implemented.
A 2019 FSC report into the operations of SSL found that the company was engaging in the mixing of client funds with money used to cover its daily operations
SSL has denied this claim, stating that proprietary funds and client funds were governed by different departments and system controls to ensure both streams do not mix and safeguard the integrity of the company.
With respect to the monies held by WellJen Limited, the company associated with world record holder Usain Bolt, SSL says it was not aware that Bolt was connected to the company.
It says it only learned of the fraud involving the athlete on January 11 when a member of Bolt's management team visited its office to state that the former SSL employee at the centre of the fraud had visited the offices of WellJen to confess and request assistance in paying back other clients that she had defrauded.
SSL's Board says during a disciplinary proceeding with the former Client Relationship Manager, the fraudulent activity involving WellJen was not mentioned nor was it listed among the 39 clients she said were defrauded in the elaborate scheme.
The Board did not give a direct answer as to why the company failed to detect the fraudulent activity that had spanned the last decade.
It only stated that investigations and a review of all processes will be required to determine the full answer to the question.
