Good News for Cash Plus Clients!

Yes friends, Cash Plus Ltd.'s clients (creditors) might just be able to rejoice today!

The Financial Services Commission(FSC), has varied the cease-and-desist order it placed on Cash Plus in December 2007, thus allowing Cash Plus to pay the outstanding monies it owes its clients.

[Cash Plus  Ltd. (CPL)  is one of the Jamaican Alternative Investment Schemes that has been hammered by the FSC, for its failure to register as a securities dealer and file audited financial statements that would prove assets to keep the company afloat.

In November 2007, as a result of Cash Plus' inability to provide its, banker, National Commercial Bank(NCB), with audited financial statements, outlining the source of its funds, the bank closed seventeen (17) of Cash Plus' twenty-six (26) accounts.

NCB completed this process in February 2008, thus preventing Cash Plus from disbursing monies to its clients.

The bank claimed it did this to prevent the bank being implicated in money laundering and terrorist financing.

Following the  decision by NCB to close some of Cash Plus' accounts in November, the FSC placed the cease-and-desist order on Cash Plus.

NB: Cash Plus claims that its clients are really creditors, as they have loan the company money to invest on their behalf.]

Cash Plus then asked it clients for three months (up until March 31,2008) to be able to come up with monies to pay them back.

Cash Plus however failed to meet its March 31,2008 deadline  and was put in receivership last Monday by the Jamaican Supreme Court, at the request of lawyers representing the company.

The court then appointed a Receiver (Mr. Kevin Bandoian) from PriceWaterhouseCoopers USA, to assess the actual assets that the company has and to begin disbursement of funds to its clients.

Apparently Cash Plus, in the documents it presented to the FSC, last Friday, has been able to prove that it has monies to the tune of US $460 million (JMD $32 billion) to pay its clients, from its affiliate in the Turks and Caicos islands. Thus allowing the FSC to waive the cease-and-desist order.

Although Cash Plus Ltd. in a press release in the Sunday Gleaner on Sunday April 6, 2008, claims that it will actually start disbursing the monies on April 14, 2008, Cash Plus clients are yet to get verification from the FSC, re the actual disbursement date.

In the April 6, 2008 press release, Cash Plus vowed to continue operating as soon as it  applies to the FSC to become a licensed securities dealer in Jamaica.

I would like to thank deshoda for providing us with the inset video seen above. Deshoda's YouTube.com profile can be seen, here.

Gillian

Sources Include:

1) The Business Day, via Television Jamaica (TVJ) News at 7:00 p.m., April 7, 2008

2) CVM News Watch, at 8:000 April 7, 2008

3) Article, "Cash Plus in turmoil - Investment Club in receivership- Investment club in receivership", by Barbara Gayle and Gareth Manning, Jamaica Gleaner, April 1, 2008