The Financial Services Commission (FSC) is contemplating its next steps, including potential legal actions, after a recent court ruling stripped it of control over Stocks & Securities Limited (SSL). The court has appointed Caydion Campbell to oversee SSL’s management, but Campbell has yet to take any action since the FSC’s initial takeover following a massive $5 billion fraud scandal involving notable figures such as Usain Bolt.
The court’s decision bars SSL from facing criminal charges without further approval. This ruling marks the FSC’s second major setback in recent months. After taking temporary control of SSL on January 17, 2023, the FSC’s attempt to amend its lawsuit against SSL in March failed. The commission had aimed to include allegations against two former directors who reportedly signed a solvency declaration after their resignation.
In response to the court’s ruling, the FSC reaffirmed its dedication to protecting SSL’s clients and maintaining financial system stability. Executive Director Lt. Colonel Keron Burrell stated, “While we respect the court’s decision, we are thoroughly reviewing the judgment and considering all available options, including the possibility of further legal action. Our primary focus remains on safeguarding the interests of SSL’s clients and ensuring the stability of the financial system.”
The court’s decision underscores SSL’s insolvency and mandates a court-supervised winding-up process. This ruling supports the FSC’s previous regulatory measures. The court’s statement noted, “The court recognized the competence of the temporary manager appointed by the FSC during the management period but has ruled that this temporary management, which began on or around January 17, 2023, must cease immediately. The winding-up process will now proceed under the Trustee appointed by SSL, as mandated by the court.”
Additionally, the court has stayed all proceedings against SSL, providing a period of stability during the reorganization. A follow-up court hearing is scheduled for September 26, 2024, where the trustee will present a comprehensive report and further legal motions will be addressed.
Lt. Colonel Burrell emphasized the FSC’s ongoing collaboration with law enforcement to ensure a thorough investigation into the wrongdoing at SSL and to hold accountable those responsible.
