Category Archives: receivership

Cash Plus real estate arm in liquidation

Cash Plus real estate arm in liquidation
by jamaicaobserver.com
Paul Henry
Monday, September 22, 2008

Cash Plus Development, a subsidiary of Carlos Hill’s failed Cash Plus group, was Friday placed into liquidation by the Supreme Court.

The liquidation order was made by Justice Marva McDonald following an application by the court-approved trustee in bankruptcy, Monty Kandekore.

It is believed that the real estate company has assets of some $2 billion.

However, Kandekore, who is also the liquidator of the Cash Plus Group and Cash Plus Limited said that only part payment was made on some of the properties purported to be that of Cash Plus Development. Kandekore said he would only be able to recoup the part payment made on properties that exceed 10 per cent of the purchase price.

As Liquidator, Kandekore is responsible for disposing of the assets of the companies in order to secure funding to pay relevant claims that may be made against the entities by investors.

Cash Plus has approximately 40,000 clients to whom it owes billions of dollars. Several multimillion lawsuits have been filed to recoup monies invested in the failed alternative investment scheme.

Kandekore was appointed liquidator in June by the court, following an application by the Premier League Clubs Association to wind up Cash Plus Group Limited, because of its failure to honour sponsorship commitments regarding the National Premier League Football competition.

Provisional liquidator appoint Fed for Cash Plus Limited

Provisional liquidator appoint Fed for Cash Plus Limited
Jamaica Observer – Kingston,Jamaica
Friday, August 01, 2008

The Supreme Court of Judicature in Jamaica has appointed Mr L Monty Kandekore, Trustee in Bankruptcy, as the Provisional Liquidator of Cash Plus Limited (CPL). This is in addition to Mr Kandekore’s appointment on June 27, 2008 as Provisional Liquidator of Cash Plus Group Limited (CPG), headed by Carlos Hill. His appointment as Provisional Liquidator of CPL became effective on July 18, this year.

As Liquidator, Kandekore will be responsible for disposing of the assets of CPG and CPL, in order to realise funding to pay towards any relevant claims that may be made against the entities.

Kandekore’s appointment by the Court arose from an application by the Premier League Clubs Association (PCLA) to wind up Cash Plus Group Limited, citing its failure to honour commitments made with regard to sponsorship of the National Premier League Football Competition. CPG holds approximately 50 per cent of the estimated (real) assets of Cash Plus, while CPL collected the bulk of lenders funds and was the major source of funding for CPG’s acquisitions and investments.

The role of the Court-Appointed Liquidator of Cash Plus Group and Cash Plus Limited, differs from that of the Court-Appointed Co-Receiver- Manager, Kevin Bandoian who was installed on March 31, 2008. Bandoian has a mandate to determine the existence and value of assets owned by Cash Plus Limited and Affiliates as well as what is owed to creditors and lenders. He still has jurisdiction over the assets of affiliates of Cash Plus Limited, with the exception of Cash Plus Group, until the Court decides otherwise.

Only the Provisional Liquidator has the authority to dispose of CPG and CPL assets, and it is expected that information regarding payments, if any, will be announced by him in due course. Further, the Receiver/Manager has been mandated by the Court to provide a final report by August 8, 2008.

Cash Plus boss loses bid to take back company

Cash Plus boss loses bid to take back company
PAUL HENRY, Observer staff reporter henryp@jamaicaobserver.com
Saturday, July 26, 2008

THE bid by Cash Plus boss Carlos Hill to take back control of his company, which was placed into receivership in March, came to a crashing end in the Supreme Court yesterday.

A dapperly dressed Hill, in his court appearance yesterday, was powerless to act as his application to challenge the appointment of receiver/manager Kevin Bandoian’s appointment was taken over by the recently appointed liquidator of Cash Plus, L Monty Kanberkore, and withdrawn.

Kanberkore, who is so empowered as liquidator under the Companies Act, told the court that the action to challenge Bandoian’s appointment was not the best thing for creditors.
Kanberkore’s appointment as liquidator came last month as a result of an application in June by the Premier League Clubs Association (PLCA) for the winding up of the Cash Plus Group.

The PLCA is seeking the winding up because of Cash Plus’ failure to honour an agreement reached last October for the sponsorship of the 2007/2008 Premier League Football Competition at more than $100 million. The PLCA is hoping to recover lost fund with the liquidation of Cash Plus’ assets.

Shortly after Bandoian’s appointment on March 31, lawyers acting on behalf of Cash Plus and Carlos Hill, filed the application to challenge the appointment on the ground that the law did not provide for an employee to make applications to place a company into receivership, as was done in this case. This, they said, could only be done by the company’s director, shareholders or creditor.

Bandoian’s appointment as receiver/manager followed several failed dates set by Hill to repay his approximately 40,000 lenders.

Meanwhile, the court will on September 30 hear applications from persons who want to intervene in the matter.

Cash Plus boss suffers setback in challenge against receivership

Cash Plus boss suffers setback in challenge against receivership

Tuesday, July 22, 2008
published by Jamaica Observer

CASH Plus boss Carlos Hill will have to wait until Friday to start his legal challenge against the court’s decision in March this year to place his troubled entity into receivership.

The postponement of the hearing in the Supreme Court yesterday was made to allow the Cash Plus Group’s court-approved liquidator, L Monty Kanberkore, time to file his affidavit in the matter.

Kanberkore, whose appointment stemmed from an application in June by the Premier League Clubs Association (PLCA) for the winding up of the Cash Plus Group, only intervened in the matter at the last minute.

The PLCA is seeking the winding up of the Cash Plus Group because of the entity’s failure to honour an agreement reached last October for the sponsorship of the 2007/2008 Premier League Football Competition at more than $100 million. The PLCA is hoping to recover lost funds with the liquidation of the group.

Cash Plus’ lawyers were yesterday set to make submissions in chambers against the approved appointment of receiver/manager Kevin Bandoian, which was done on an application by an employee of Cash Plus.

The lawyers are contending that under the law an employee of a company cannot file for a company to go into receivership. This, they said, can only be done by the company’s director, shareholders or creditor.

Bandoian’s appointment as receiver/manager was approved by the court on March 31, following several failed dates set by Hill to repay his approximately 40,000 lenders.

Those alternative investment schemes

Those alternative investment schemes
By Jamaica Observer
DIANE ABBOTT
Sunday, July 20, 2008

In retrospect, 2008 will be seen as the year that the alternative investment scheme bubble burst. The two leading schemes were Cash Plus and Olint. And they are slowly, but surely, being revealed as fraudulent. This comes as no surprise to me. But I was astonished, when visiting Jamaica two years ago, how many informed and intelligent people were taken in.
DIANE ABBOTT

I remember a highly-educated friend telling me, in all seriousness, that she believed in Olint because David Smith had such nice parents and was a good churchgoing boy. People rhapsodised about the high returns, as if the 10 per cent they were getting monthly was in itself a guarantee of probity.

For most of the 1990s, I served on the Treasury Select Committee of the British House of Commons. We had complete oversight over banking and financial services in Britain. We investigated the collapse of Barings Bank, the collapse of the Bank of International Credit and Commerce (BCCI) and innumerable other financial wrongdoings and scams. I took one thing away from all my years of investigating the good, the bad and the downright criminal. That is, if the return on an investment is too good to be true, it is exactly that. It is not true. This is not a difficult principle to understand. But somehow people’s greed always gets the better of them.

Of course, initially everything in the garden was rosy. Olint was hailed as “a revolution in the local investment scheme”. In 2006 the founder David Smith was lauded as “Business Personality of the year”. Cash Plus was supposed to be another financial miracle. It (apparently) acquired real assets including the Hilton Kingston and the 800-acre Drax Hall Estates. The founder Carlos Hill boasted of investments in telecoms, financial, shipping, hospitality, fuels/chemicals and real estate. He claimed that he was going to build up an array of businesses in an “expanding and diversified portfolio of companies”. But there was no real documentation about how these, and other such, investment schemes were making their money. Yet people did not seem to care. In vain did the Financial Services Commission (FSC) implore people to “research and think before they invest”.

Journalist Ian Boyne quoted one undaunted Cash Plus investor as saying “mi prepared fi go dung wid Cash Plus. Wi nah tek it out and give the banks!”

Then in December of last year the Jamaica Observer broke the story that Carlos Hill of Cash Plus was a convicted felon. The US courts had sentenced him to near 30 years in prison. He had been at the centre of a web of fraud. Amongst other things, he had set up an elaborate “pyramid” scheme which involved taking fees from customers to arrange loans which never materialised. This alone made him US$8 million. The full extent of his fraudulent activities in America may never be known because, by pleading guilty, he avoided further investigation. Ultimately he served only 10 years in prison in America and returned to Jamaica in 2002. In April this year, Carlos Hill was arrested and charged with fraud. Assistant Commissioner Green revealed that Cash Plus was just another “pyramid” scheme. Hill was using the deposits from new investors to give old investors their 10 per cent. And, weeks after the arrests, the authorities revealed that Cash Plus was basically broke.

Meanwhile, Olint was having increasing difficulty in paying out regularly to its members. And there were still no audited accounts. The Financial Services Commission (FSC) tried its best to get David Smith (the Olint founder) to provide some basic documentation about his activities. He responded by taking his operation out of the jurisdiction of the Jamaican authorities and registering it first in St Kitts and then to Turks and Caicos. Last week a joint team of US and Turks and Caicos law enforcement officers raided Olint’s offices. The US authorities have closed his offices in Miami and his assets have been frozen.

And now a key recommendation of the latest International Monetary Fund (IMF) report on Jamaica is that the government must close down all fraudulent investment schemes. In the body of the report the IMF spells out what it means. It points out that Jamaica has 35 unregulated investment schemes. It notes that they all have the same three characteristics: a monthly return of at least 10 per cent; restrictions on withdrawals and the referral of new members by existing clients.

The IMF report goes on “these attributes are also common to Ponzi schemes which inevitable collapse. Ponzi schemes do not undertake productive investments but use funds from newcomers to pay earlier entrants”.

The international authorities have made their position clear. It is time for the Jamaican government to act.

Cash Plus investors have 3 week wait for news

Cash Plus investors have 3 week wait for news
by Radio Jamaica

Thursday, 17 July 2008
Cash Plus Boss Carlos Hill. After waiting for nearly four months, clients of Cash Plus Limited will in three weeks hear whether they will be able to recover their investments.

The Supreme Court has mandated the receiver managers to provide a final report on the Cash Plus Group by August 8th.

It should outline the assets and liabilities as well as how much investors can get back.

In an update to clients, the receiver manager’s reported that investigations have revealed that financing for the Cash Plus Group and related entities including Cash Plus Development came primarily from investors’ funds placed in Cash Plus Limited.

It is reported that Cash Plus Group is the single largest holder of the assets in the group of companies.

The assets include real estate and deposits with various financial institutions.

Sorry, only for persons who drive, Click here!

Media barred from revealing Cash Plus receiver/manager

Tuesday, April 08, 2008

THE media and others have been barred from naming the other person approved by the court last Monday along with Pricewaterhouse Coopers’ accountant Kevin Bandoian as joint receiver/manager of the ill-fated alternative investment club Cash Plus Limited.

The name of the woman who filed the claim for Cash Plus to be put into receivership under Section 213A of the Companies Act (2004) was also deemed classified by the court.

Justice Marva McIntosh also ruled that the woman be given permission to replace the documents already filed in court and pursue the action under the pseudonym Madam A and that she files with the registry in a sealed envelope, the details of her name, occupation, address and the original document.

The media and any person who disclose or cause to be disclosed the names of these persons could be held in contempt of court and face imprisonment or a fine.

Justice McIntosh had last Monday approved the appointment of Bandoian of PricewaterhouseCoopers in the United States as joint receiver/manager along with the other classified party to manage the affairs of the beleaguered Cash Plus, which owes billions of dollars to its 40 lenders.
The investment arm of Cash Plus has been out of operation since being served last December with a cease-and-desist order by the Financial Services Commission (FSC).

A press release from PricewaterhouseCoopers said that the receiver/manager will, under the supervision of the court, “commence work immediately from the offices of Cash Plus Limited and its affiliates and will advise creditors of the progress of the process in due course”.

The court, at the same time, prohibited Cash Plus Limited and its affiliates, whether through its directors, agents, officers or employees from selling, transferring or otherwise dealing with or dissipating the assets of Cash Plus Limited or its affiliates for a period of 28 days.

The joint receiver/managers, 35 days from today, are to supply the court with a report on Cash Plus’ status.

Cash Plus’ announcement last Sunday that it will commence payment to lenders on April 14 is not likely to get off the ground in light of the appointment of the managers.