FSC Handing Over SSL Wind Up Operations to Trustees

The temporary manager appointed by the Financial Services Commission, FSC, to wind up operations at brokerage house Stocks and Securities Limited, Ken Tomlinson, is in the process of handing over operations to the trustee appointed by the principals of the company.

This follows a ruling by the Supreme Court on Friday.

SSL, which is the subject of a multibillion-dollar fraud investigation, has been granted leave to voluntarily wind up operations under the supervision of the court.

Chevon Campbell tells us more.

Supreme Court Justice, David Batts, affirmed that SSL Trustee, Caydion Campbell is the person lawfully empowered to wind up and reorganise the beleaguered brokerage house.

Justice Batts also ruled that the winding up of SSL, which the company initiated on January 16, 2023, may resume subject to the supervision of the court.

Ken Tomlinson had been appointed by the FSC to, among other things, do the work that Caydion Campbell had already been tasked with by SSL.

Based on Friday’s ruling by Justice Batts, Tomlinson must immediately provide all reports and documents about the company and its operations.

Speaking with Nationwide News on Friday, Mr. Tomlinson said his staff are already in the process of complying with the ruling.

Importantly, the ruling by Justice Batts also declared Tomlinson’s actions throughout his custodianship of SSL, to be lawful and done in good faith.

Justice Batts says he saw no practical or useful purpose in ordering that all the work done by Tomlinson over the period be undone.

All suits against SSL principals also remain on hold for the time being as per Justice Batts’ ruling.

Legendary athlete Usain Bolt, one of the victims of the multi-billion dollar fraud perpetrated at SSL, is among those waiting to sue the entity and its principals.

Costs have also been awarded to the principals and the trustee.

The trustee of SSL must provide a report to the court on September 26, 2024, 90 days after Friday’s ruling.

The FSC, through the temporary manager, was in the process of returning client funds and securities. 

This continued up to Thursday.

However, there’s now uncertainty about whether this will be followed through by SSL’s trustee.

Meanwhile, according to well-placed sources at the Financial Investigation Division, investigators believe they’ve gained enough information to continue their investigation and prosecution of fraud-related matters.

However, they’re concerned that the ruling could jeopardise potential cooperation from SSL going forward.

Former client relations manager at the securities dealer, Jean Ann Panton, remains the only individual criminally charged for the fraud thus far.

She’s booked to return to court on September 20.

Meanwhile, Opposition Spokesman, Julian Robinson, is calling on the government to urgently address the implications of Friday’s court ruling that ousted the temporary management of the fraud-hit SSL.

Mr. Robinson expressed deep concern over the court’s decision, emphasising the potential negative impact on investor confidence both locally and internationally.

Julian Robinson, Opposition Spokesman on Finance.