Blame the fool in the mirror

Blame the fool in the mirror

From the The Jamaica Star – April 11, 2008

There is a saying, ‘If something looks too good to be true, then it usually is’. Cash Plus seemed like something too good to be true to me when I first heard about it, so I did what any rational person would do: I asked questions.

I was in St Maarten and seeking to find ways to invest a little money when I first heard about the investment scheme, so I checked the Internet and I talked to people and then I spoke to my sister, Opal, my own personal banker and financial guru. I am so glad I listened to her advice.

She told me that Cash Plus was a pyramid scheme that was bound to collapse. It was just a matter of time. She also told me that the banks were not out to get Carlos Hill, but that the scheme was unregulated and that banks were just complying with the laws of the land.

So, here is where I get a little confused. If I could do this, why didn’t anybody else? Why didn’t those who invested their money in Cash Plus do the same?
Valuable research I found out that Hill had been jailed for similar schemes in the United States. I read that pyramid schemes have a limited life span and I also learned that you can never know when the bottom is going to drop out of the barrel. So, why would I then go ahead and put my money into this extremely risky venture? The way I see it, a fool and his money shall surely part’, and that is what is happening here.

Sure, I believe that Government could have done more to protect people. They could have set the Financial Services Commission on Cash Plus when it just started up operations, they could have investigated Carlos Hill and shut him down when they found out about his past breaches. There are many other things they could have done, but they didn’t.

However, I can’t say I was surprised because the one thing I know about the PNP is that they may have claimed to put people first, but that is all it is – a claim. To be fair Omar Davies, former Minister of Finance, did warn people about investing their hard-earned money in these schemes, but I find people have selective hearing when it comes to heeding things the Government says. I also find that when they fail to heed the advice and get burned, they expect to be bailed out.

In any event, the people who were putting in their money needed to have exercised a greater sense of responsibility. I mean, Govern-ment doesn’t need to tell you to put burglar bars on your home, and they don’t need to tell you to make sure you don’t leave your bank book lying carelessly around. These are things you should already know. So, in essence, those who got burned by Cash Plus really don’t have anyone to blame but themselves.

Some people I hear griping on radio and all over have admitted that they had more than $1 million invested in the scheme and word on the street is that one guy had more than $40 million in Cash Plus. Now tell me, if you have $40 million to spare, why do you need Cash Plus? What about Jamaica Money Market Brokers, Dehring Bunting and Golding or Capital and Credit? Aren’t they capable of turning over that kind of money fast enough to make it worth your while?

We have to stop this thing of only living for today, because as much as we would like to believe that tomorrow is not certain, it still comes, and we have to prepare for it. Investing in hare-brained schemes in which you are more likely to lose your shirt than becoming wealthy does not, with any certainty, prepare you for the eventuality of what happens next, and that is the harsh reality that Cash Plus’ clients are living with now. And, when you’re all looking for someone to blame, trying looking in the mirror first.

Send comments to shearer39@gmail.com

Boycott email targets National Commercial Bank (NCB)

Boycott email targets National Commercial Bank (NCB)

From the Jamaica Gleaner -Jonique Gaynor, Staff Reporter 2008 03 29

Boycott email targets National Commercial Bank (NCB)

Jonique Gaynor, Staff Reporter

The National Commercial Bank (NCB) is concerned about an email that is being circulated by persons claiming to be investors of Cash Plus, World wise and Olint.

The email which has been forwarded to several individuals, urges recipients to immediately close all NCB accounts.

NCB’s public relations and corporate affairs manager, Belinda Williams, told THE STAR, “It is of concern to us because it is putting the company’s reputation and image in disrepute. It is a viral mail so it spreads really fast and everyone is adding something else to it.”

Rational and responsible

She said the company was looking at the matter to decide on the best way to “manage and counteract this.” She also appealed for customers to be rational and responsible and to “not be a party to the circulation of information that, to a large extent, is not without fault or flaw”.

The email blames the organisation for the downfall of the schemes and calls on all NCB account holders to withdraw their funds as a collective gesture of their objection.

One section of the email declares, “… let us as investors, who are most affected, show our support and solidarity with these institutions by closing all our NCB accounts …”

The message also encourages recipients to, “Pass this on to everybody you know and add your story …”

Tek out everything

One World Wise and Cash Plus investor, Ray Alexander, who admitted to forwarding the message, told THE STAR, “I have three accounts with NCB. I have the Omni, which I just closed and tek mi money to [another bank]. I had a US account, which I basically tek out everything an jus leave like $100 and I had another local account and I just took out all the money and move it.”

He explained that the returns he received from his investments made a difference in his way of life and said, “It was coming in like clockwork, not because of Cash Plus, but because of these people.

We need to take some placards and go up there. Poor people need to stand up as one. We can make a difference. We need to withdraw our money. Even if it’s just a dollar, we need to show them that we don’t need them and that we’re in control.”

Chris Gouldbourne, vice- president of Cash Plus, told THE STAR that he was not aware of the email. However, when asked whether the company supported such a move, he said, ” I really don’t have a comment on that.”

Cash Plus employee charged with fraud

charged with fraud

From the The Jamaica Star – Dwayne Mcleod, Staff Reporter – 2007 04 04

A cashier for Cash Plus Distributors Limited was brought before the Corporate Area Resident Magistrate’s Court on Monday to face charges of fraud, uttering a forged document and simple larceny, in respect of $966,000 which was reportedly defrauded from the company.

Thirty- three-year-old Sharon Brown, who resides at a Kingston 17 address, pleaded guilty to some of the charges for which she was accused, but also pleaded not guilty to a few.

Brown admitted to stealing some of the cash, but went on to tell Resident Magistrate Judith Pusey that she was not familiar with some of the charges brought against her, and, as such, was not sure if she should plead guilty or not guilty. She claimed that the premises at which she worked (Brentford Road, Kingston 5), was prone to regular break-ins and even she fell victim to the acts.

It was reported that on separate days between December 12-18, 2006, Brown deposited the day’s sale in the Cash Plus Distributors Limited account at the Cross Roads branch of the National Commercial Bank. An audit of the account later revealed that there were discrepancies on 14 of the cash deposit slips that were tendered by her to the bank, as well as to Cash Plus.

The police was subsequently informed and the accused was taken to the Half-Way Tree Police Station by security guards employed to Cash Plus Distributors Limited. An investigation conducted by the CIB personnel at the station led to the accused being charged.

RM Pusey ordered that Brown, who was without legal representation, be interviewed for legal aid assistance and another mention date for April 19 was set.
Brown was granted bail in the sum of $20,000.

Probe turns up more Cash Plus companies

Probe turns up more Cash Plus companies
published: Monday | April 21, 2008

The court-appointed co-receiver/manager for Cash Plus Limited, Kevin Bandoian, says he has discovered more companies affiliated with the investment scheme than were disclosed by the police two weeks ago.

In a release issued on the weekend, Bandoian said he has discovered that 200 companies are affiliates of the Carlos Hill-led Cash Plus Limited and its former executives.

Shortly after Hill was arrested and charged with fraud, the police announced that they had found records indicating that there were 186 companies affiliated to Cash Plus or to Hill himself.

Hill’s brother, Bertram, and the chief financial officer at Cash Plus, Peter Wilson, have also been charged.

Entities increasing

Meanwhile, Bandoian, a chartered accountant employed to PricewaterhouseCoopers in the United States, said the number of entities continues to increase daily.

But, he says, several of them have apparently never traded since their incorporation, or have minimal revenue-generating activities and incomplete financial accounts.

The police further said they would be seeking to confirm the existence of more than US$4.6 billion (J$326.6 billion) stashed across the globe, for which documentation was seized from the home of Hill during a raid.

The co-interim receiver/manager said he could provide no new information to Cash Plus lenders at this time as it related to repayment. He said lenders, creditors and customers would have to await the court’s instructions and advice after he submits his report on May 5.

Documents found at Hill’s premises on the day of the arrest showed more than US$4.6 billion was lodged in various countries, in the name of Galina Trust Limited, which is registered in the Turks and Caicos.

The Major Investigations Task Force, the Organised Crime Investigation Division and the Fraud Squad are leading the police probe into the financial status and assets of the unregistered investment scheme.

Share findings

The court has also given authority to the co-interim receiver/manager to ask the authorities in Jamaica or any other jurisdiction to share their findings in accordance with the March 31 order.

When contacted yesterday, Assistant Commissioner of Police Les Green told The Gleaner that he was unable to give any further information on the matter as it was now before the court.

Carlos Hill and his brother, Bertram, were last week denied bail in the Half-Way Tree Resident Magistrate’s Court. Wilson, however, was granted bail in the sum of $5 million.

The Cash Plus boss, who is facing four counts of fraudulent conversion and four counts of obtaining money by false pretence, is expected to make his next court appearance on May 14. He is also charged with one count of conspiracy to defraud, while Bertram and Wilson are each charged with one count of conspiracy to defraud.

Cash Plus lenders can request information on their individual accounts by writing to:

Cash Plus Ltd (in receivership) PO Box 606, General Post Office, Kingston; or email cpreceiver@cashplusltd.com