Banks refuse to honour cheques from Olint, Cash Plus

[MdmeX]

Accounts closed: Banks refuse to honour cheques from Olint, Cash Plus
published: Saturday | November 24, 2007

Shelly-Ann Thompson, Staff Reporter


Customers converge on the Premier Plaza office of Cash Plus Ltd. yesterday in search of information about the operations of the popular investment club. There has been a run on the club, which Cash Plus said was precipitated by the actions of several banks at which its customers have accounts. - Junior Dowie/Staff Photographer
At least one high-risk investment scheme has advised its members that its accounts have been closed by local banks, while inside sources have told The Gleaner that some financial institutions have threatened to fire their employees who have accounts with schemes such as Cash Plus Limited and OLINT Corp.
A letter sent out to clients of OLINT advised that at least three [COLOR=orange! important][COLOR=orange! important]commercial [COLOR=orange! important]banks[/COLOR][/COLOR][/COLOR] had taken steps to close OLINT'S accounts.
The letter, over the signature of G. Wayne Smith, OLINT's chief executive officer, said the accounts were at "different stages of closure following advisories received from each of these institutions to that effect".
no disruption
The letter said in part: "We would like to assure you that the closure of the local accounts will not cause any disruption to our [COLOR=orange! important][COLOR=orange! important]trading[/COLOR][/COLOR] activities."
It added that "th channels that will be employed to ensure that your transactions continue to be undertaken in a confidential, efficient and effective manner will be communicated to you shortly".
The Jamaica Bankers' Association has stressed that it has not seen the circulars.
The Gleaner was also informed that financial institutions were yesterday on the brink of closing all accounts relating to what they deemed 'unregistered schemes', such as the popular Cash Plus.
alternative measures
Carlos Hill, chairman of Cash Plus, issued a statement in the print media yesterday in which he said the entity had "not taken the recent attacks on our operation lightly and as such we have researche [COLOR=orange! important][COLOR=orange! important]banking[/COLOR][/COLOR] measures which have been implemented".
Effective December 1, money earned will be wired directly to investors' [COLOR=orange! important][COLOR=orange! important]bank [COLOR=orange! important]accounts[/COLOR][/COLOR][/COLOR] or it may be collected at any remittance outlet islandwide.
According to information reaching The Gleaner, one bank has ordered its employees to close all accounts with the unregistered o schemes or risk losing their jobs.
One source detailed that the employees of a financial institution were told that they should declare whether they had savings in any of



these schemes and then make the necessary arrangements to discontinue the accounts.
Additionally, the source said that the management of the financial institution threatened that if the disclosure was not made and the bank discovered that any of their employees held accounts, they would be fired.
However, at least one trade union has warned that the movement would not stand for such actions.
"Certainly that would not be tolerated by the National Workers Union," said Vincent Morrison, President and Island Supervisor of the NWU.
"If they should carry out such a practice it would cause disruption in their operations and we make no apologies for the action that we would take in defence of the workers," he said.
Mr. Morrison explained that workers have a right to decide who they do business with. "I would be of the opinion that it is unlawful that can't be a basis to terminate anyone's services," he stated.
One Cash Plus investor who deposited a cheque said it was returned yesterday by a local commercial bank as "unclear funds".
The [COLOR=orange! important][COLOR=orange! important]investor[/COLOR][/COLOR] said he was advised by the bank not to redeposit the cheque at the bank but to try and reclaim his money from Cash Plus. Still, many investors with Cash Plus have become irate with local banks.
One man, who spoke on condition of anonymity, said that because of Cash Plus he was able to survive financially.
He resigned from his job three years ago and invested $1.6 million in Cash Plus.
Today, he is able to pay his monthly mortgage of $55,000 and he and his wife's monthly car payments.
"When I resigned I didn't know how I was even going to send my daughter to college, next year she will be able to graduate," he said.
Yesterday, he deposited another $2 million into the investment scheme.
"Cash Plus will not crash and even if they do I will never put back my money into these banks," he said.
Other persons who turned out at Cash Plus' disbursement office in Premier Plaza, St. Andrew yesterday shared similar sentiments.
Some of the investors said they were annoyed with the public utterances and wanted back their deposits. However, many said they were going overseas with their money. Cash Plus has also called a meeting with its clients for today at the Merl Grove Auditorium on Constant Spring Road, St. Andrew.

[Muadib]

Banks trying hard to preserve the Status Quo:

Rich get Richer.. poor get poorer..

[Mosiah]

I am a proud investor in one of these investment schemes, as assasin calls it. If they should close it down, I am never going to return to the NCBs and the Scotias (incl. DB&G). So dem just get sheg!

[Lazie]

Whats the fuss, can't they move their accounts overseas? Who's gonna lose?

[Hortical]

Jamaica need laws to benefit the common man. It is incredible that a bank would order employees to declare whether they have investments in Cash Plus.

Based on my limited experience with the financial sector in Jamaica, the common man does not appear to have many of the rights and benefits that are available to citizens in first world countries.

[Mosiah]

Based on my limited experience with the financial sector in Jamaica, the common man does not appear to have many of the rights and benefits that are available to citizens in first world countries.

The common man?! The common man in Jamaica must know and keep his place. The common man is being harrassed and murdered by the police. The common man's tribulations are not the concern of the status quo.

[Assasin]

As my friend ask me a month ago if I think it is a wise idea and I said to him if you going to bawl bout it if you loose then I would advise you not to but if you have some money put aside for investment purposes, why not?

I am not belittling it in anyway, since the other day you try fi drag out any thing I say and put your meaning behind it but in the relm of things it should be a part of a diverse economy and not at the expense of startup business and entrepreneurship. Just remember that while people are making money there is no law to govern these investments.

There should be no reasons we should have to sell everything to foriegners, it only show the confidence we have in investing in our own institutions.

[Mosiah]

I am not belittling it in anyway, since the other day you try fi drag out any thing I say and put your meaning behind it...

Not true, assasin. You need to say exactly what it is you are saying. When you revise your writings by a word or two that change the entire meaning of what you said earlier, don't blame me for that! This forum allows you to edit, so if you mistyped, feel free to edit your post and make yourself clear.

[Assasin]

what is so wrong with this statement while responding to the fact that the Trinis are buying out J Wray and Nephew? Knowing our recent history of selling so many companies to overseas investors

"Yeah while we a put the money inna Government bonds and cas plus some people actually a invest in business and a produce, get productivity, while making profit so them can buy us out.

A time fi we wake, by the time the spaniards, chinese, Trini, US and all the others done with us not even our back garden we own."


Did you notice I also used government bonds in the same line? Because they are not direct capital investments.

[Muadib]

You should be mindful however of what what Cash Plus is doing with the money.. what companies are they claiming to be buying ?

[Assasin]

that is for the investors to decide.

Sometimes as investors people take a chance so it up to them but as it is said the higher the return the higher the risk so if your stomach can't take it then don't cry, there is enough information out there for people to make up their mind one way or another.