Officials in Jamaica have launched a full investigation after Olympic track and field star Usain Bolt said his $12.7 million deposit in a brokerage account mysteriously shrank to $12,000.
Bolt’s attorney brought charges against Stocks and Securities Ltd. (SSL), one of only 15 registered broker-dealers on the Jamaica Stock Exchange, and threatened a lawsuit if its missing funds were not returned.
The missing money represents a significant fraction of Bolt’s estimated $90 million fortune, and his attorney said the account with SSL was intended as a retirement plan for the legendary athlete and his family.
On Tuesday, Jamaica’s Financial Services Commission took control of SSL and appointed a temporary manager to oversee the firm amid a widening investigation into suspicious transactions reportedly going back a decade.
SSL blames all the discrepancies on a rogue former employee, but Jamaica’s Treasury Secretary Nigel Clarke accused the company of “alarming and vicious fraud” and vowed to “bring all perpetrators to justice”.
Officials in Jamaica have launched a full investigation after Olympic track and field star Usain Bolt said his $12.7 million deposit in a brokerage account mysteriously shrank to $12,000
SSL’s website has removed the listing of its two directors, Jeffrey Cobham (left) and Hugh Croskery (right), and a notice on the website says the firm is now under the control of the FSC
Bolt’s attorney, Linton P. Gordon, and SSL representatives did not immediately respond to inquiries from Thursday morning.
SSL’s website has removed the listing of its two directors, Jeffrey Cobham and Hugh Croskery, and a notice on the website says the firm is now under the control of the Financial Services Commission (FSC).
Cobham is a former managing director of National Commercial Bank and was a director of Sagicor Life Insurance, although his current affiliation with that firm is unclear.
Croskery is a founding member of SSL and previously served on the board of directors of the Jamaica Stock Exchange.
Jamaica’s Treasury Secretary Nigel Clarke accused SSL of ‘alarming and malicious fraud’
Bolt’s attorney Gordon previously provided the Associated Press with a copy of a letter he sent to SSL, in which he said his client’s bail had inexplicably shrunk from $12.7 million to $12,000 and requested the money be returned .
“We will take the matter to court,” Gordon told Portal if the company doesn’t return the funds.
“This is a great disappointment and we hope the matter is resolved in a way that allows Mr Bolt to get his money back and live in peace.”
Bolt’s account was intended to serve as a pension for the eight-time Olympic sprint champion and his parents, Gordon said.
Bolt, 36, has an estimated net worth of around $90 million, and at the peak of his career, he was said to be making more than $30 million annually.
Considered one of the greatest sprinters of all time, Bolt retired in 2017 after a decade of dominating the sport and making a name for himself.
Stocks and Securities Ltd. Headquarters (SSL), one of just 15 registered broker-dealers on the Jamaica Stock Exchange, which is now embroiled in a widening scandal
Bolt was reportedly making over $31 million a year at the peak of his running career
SSL said in a statement last Thursday that it had become aware of fraudulent activity by a former employee and had escalated the matter to law enforcement, adding that it had taken steps to secure assets and strengthen logs.
On the same day, Jamaican regulators announced “increased oversight” of SSL, demanding a full view of all of the company’s transactions, including “the movements of funds and securities into and out of SSL.”
On Friday, the Financial Services Commission (FSC) strengthened its oversight by appointing a special auditor to oversee SSL.
The Jamaica Constabulary Force said Monday that its fraud and financial investigation teams are investigating “alleged fraudulent activity at (SSL) that allegedly compromised the accounts of Mr. Usain Bolt and others.”
On Tuesday, the FSC took dramatic action, taking full control of SSL and appointing Kenneth Tomlinson of Business Recovery Services Limited as interim manager of the broker.
Considered one of the greatest sprinters of all time, Bolt retired in 2017 after a decade of dominating the sport and making a name for himself
“Like all Jamaicans, I am shocked and feel a deep sense of anger and disgust at the alarming and vicious fraud allegedly perpetrated at Stocks and Securities Limited, which is currently the source of public debate and anxiety. ‘ Finance Secretary Clarke said in a statement.
At a press conference on Wednesday, FSC Executive Director Everton McFarlane vowed to publicly announce the outcome of the investigation into alleged fraud at SSL.
On Tuesday SSL had removed the lists of its officers and directors from its website, directing urgent inquiries to the FSC.
“In addition to our press release dated January 12, 2023, please note that the company is currently under the authority of the Financial Services Commission (FSC) and as such, SSL’s responses may be delayed at this time,” the release reads.
“We understand that customers are anxious to receive further information and assure you that we are closely monitoring the matter throughout all necessary steps and will update our customers of the resolution as soon as this information becomes available,” she added.
“Contact the Financial Services Commission with urgent questions. Thank you for your patience and kind understanding.’