Bad News for Cash Plus Clients

There is unfortunately bad news for Cash Plus clients, tonight.

 

A summary of the Receiver Manger's (Mr. Kevin Bandoian from PriceWaterhouseCoopers USA) report was released by the Supreme Court today. Mr. Bandoian has confirmed that Cash Plus is insolvent...

 

Of the two hundred (200) entities reportedly owned by Cash Plus, only three (3) of them are viable, as  transactions for ownership were not completed for most of these entities.

 

Mr. Bandoian also found that Cash Plus has 4 billion in assets and 25 billion in liabilities.

 

This means that it owes more than in owns.

 

Of the four (4) billion in assets, only three (3) billion is liquid (easily converted to cash.)

 

What this means is that the 35,000 - 45,000 investors will  each receive between Jamaican dollar (JMD)   $89,000 - $115,00 on average, small change when compared to the average JMD $550,000 that each of these clients had invested.

 

Mr. Bandoian found that 70% of Cash Plus clients' investments were used to pay other clients and he stopped just short of calling Cash Plus a Ponzi Scheme.

 

He also reported that due to the limited time he was given to conduct his investigations, he was not able to speak with all the people he would have liked to.

 

Gillian

 

Sources Include:

 

1) Television Jamaica News at 7:00 p.m., May 19, 2008.

 

2) CVM TV News at 8:00 p.m. May 19, 2008