Guyana has began authorized proceedings in a bid to recuperate greater than US$34 million {dollars} from the Trinidad-based CLICO Funding Financial institution (CIB) Restricted, which has been in obligatory liquidation.
Lawyer Common Anil Nandlall and the CLICO Life and Common Insurance coverage Firm (South America) Restricted, which can be in liquidation, have launched the lawsuit naming CIB because the defendant.
In response to the lawsuit, the problem dates again to the monetary collapse of CLICO Group that features a number of corporations that operated all through the Caribbean and managed by the Trinidad-based CL Monetary Restricted and its principal, Lawrence Duprey.
The lawsuit states that the collapse, which began round 2007, precipitated giant monetary losses all through the Commonwealth Caribbean, particularly in Guyana, the place CLICO Life and Common Insurance coverage Firm suffered vastly.
The assertion from the Workplace of the Lawyer normal stated the claimants are asking the courtroom for plenty of declarations and orders, together with the enforcement of a 2019 determination towards CL Monetary Restricted, that they’re now making an attempt to use to CIB.
They’re asking the courtroom to substitute CIB because the defendant rather than CL Monetary Restricted and to allow the execution of a cash judgment towards CIB’s property in Guyana. Among the many most vital claims is the allegation that CIB, a subsidiary of CL Monetary Restricted, was concerned in transferring over US$34 million to CLICO Bahamas Restricted, a sum that was irrecoverable following the collapse of the group.
The claimants argued that this switch was made with the information that it will trigger monetary hurt to CLICO Life and Common Insurance coverage Firm and its policyholders in Guyana.
They’re additionally alleging that CIB and its father or mother firm engaged in a sequence of fraudulent actions, together with insider mortgage fraud, and took part in a pyramid scheme. They claimed that CIB borrowed extensively from different corporations inside the group, together with CL Monetary Restricted, with no intention of repaying these money owed, and granted loans on beneficial phrases that contributed to the monetary collapse of all the group.
In response to the lawsuit, the monetary disaster inside the CLICO Group had far-reaching penalties for Guyana, noting that GYD$5.6 billion was injected into the Nationwide Insurance coverage Scheme (NIS) to stop its failure as a result of losses incurred from the collapse of the CLICO Group.
The federal government is now in search of to recoup these funds from CIB and the claimants additionally accused the CIB of breaching its fiduciary duties, appearing dishonestly, and taking part within the illegal and improper switch of funds.
They argue that CIB, together with its father or mother firm and different subsidiaries, operated as a single, built-in financial unit, disregarding their separate company identities to the detriment of collectors and policyholders.
In response to the assertion of declare, the collapse of the CLICO Group was exacerbated by company mismanagement, monetary impropriety, and the concealment of the true monetary state of the group from regulators and governments.
The claimants stated that the company construction was a facade, designed to obscure the group’s monetary realities and to evade authorized obligations.
They’re in search of varied treatments, together with an order that they’re entitled to hint the sum of US$34,069,057 along with curiosity thereon into the monies being held by the Registrar of Deeds in Guyana and has an equitable title thereto, and that the stated sums are being held in belief for them.
In response to the claimants, CIB was get together to sure debentures with two corporations integrated in Guyana, specifically, Bosai Mineral Group Guyana Integrated and Bosai Mineral Guyana Companies Inc.
They’re arguing that monies as a result of defendant below the debentures quantity to roughly US$20 million and are at the moment being held by the Registrar of Deeds to the credit score of them.
In response to the lawsuit, the defendant and different members of the CLICO Group are stopped from recovering the sum held by the Registrar of Deeds. The request by CIB to start out the method of accessing US$20 million that was positioned in escrow was denied by Justice Navindra Singh of the Demerara Excessive Court docket final month.
As well as, the decide prohibited the corporate from bringing related instances within the Guyana Excessive Court docket with out the courtroom’s permission.
The claimants are additional in search of a number of declarations and orders, together with for equitable contribution, damages for fraud and conspiracy, restitution, and any additional orders the courtroom deems simply. They’re additionally requesting that the courtroom declare CIB liable to account for all property acquired or derived from them and to indemnify them for the losses suffered.
