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When June Bryan* sold her Portmore house to invest money in Cash Plus, she dreamed of earning huge returns and an improved standard of living.
Now, with the entity facing enormous pressure, all that has changed and she is forced to deal with her finances in another way.
Cash Plus is among a host of institutions, that have set up business in Jamaica in recent years. Most invite clients to invest their cash with the promise of returns of up to 200 per cent yearly.
Clash Plus, however, did not have the authority to trade in securities. And with the recent cease and desist order placed against it, many Jamaicans are facing a similar situation and are now living with the consequences of their decision.
Bryan told THE STAR that she sold her quad in Portmore for $1.2 million and invested almost a million in the scheme. Two months later, things went downhill. Though she has been thrown off track by this, she said, "If Cash Plus failed on its own, I wouldn't have a problem. They were put in a corner. I knew it was a gamble but every month I got my interest, religiously. I am so upset, I'm really, really upset."
Monthly interest
Bryan, a teacher, said her monthly cheque from Cash Plus helped to supplement her salary. "My dream was to make another purchase [of a house] in a couple of months, now dat is gone." She however revealed that she is waiting patiently to hear what the final outcome will be. "Even if I lose some or everything, I still won't blame Cash Plus."
Like Bryan, Shirley Stanley, also invested some of the proceeds from the sale of a house. She used her monthly interest to pay her mortgage. It was going well until November. "Every month like clockwork, I got my interest. It helped me to pay off some credit card debts and I had purchased another property so I was using that money to fix that up."
Stanley resigned her job and was planning to use her interest to cover her living expenses. "It has impacted me", she said, "I don't know what I'm going to do now." Though she received returns on the over $1million she invested, she said, " I am still worried and now with the cease and desist, nobody knows what's happening. Even if I get back my principal, I can't take any more loans, so I just have to hold on and see what is happening."
The promise of having an addition to his monthly salary was what attracted Lennox Brown. He purchased a car after investing $100,000 and used his monthly returns to cover the payments. All was going well until six months after his investment. Now, his salary has to be stretched to cover all his usual expenses and the car. "I just have to hope it comes back up soon, or find another way to deal with it....I went into it with an open mind, but it still worries me. I hate losing and I don't like losing a cent."
Janet Higginsborrowed from a financial institution to invest into the scheme. She reaped only one month's return. While not willing to reveal how much she invested, she said the loss has affected the way she lives. "It put me back to a month to month existence. I'm not as comfortable as before. Now I can't afford any excesses. But it was a risk that comes with a price sooner or later. I have three kids to send to college, so I had to do something."
In late 2007, the Financial Service Commission (FSC) issued cease and desist orders on Cash Plus, its Chief Executive Officer Carlos Hill and Kahlil Harris. The order asked that "Cash Plus Ltd. et al immediately stop conducting securities business, including soliciting and accepting loans with members of the public until Cash Plus is licensed by the FSC."
*Names Changed
Now, with the entity facing enormous pressure, all that has changed and she is forced to deal with her finances in another way.
Cash Plus is among a host of institutions, that have set up business in Jamaica in recent years. Most invite clients to invest their cash with the promise of returns of up to 200 per cent yearly.
Clash Plus, however, did not have the authority to trade in securities. And with the recent cease and desist order placed against it, many Jamaicans are facing a similar situation and are now living with the consequences of their decision.
Bryan told THE STAR that she sold her quad in Portmore for $1.2 million and invested almost a million in the scheme. Two months later, things went downhill. Though she has been thrown off track by this, she said, "If Cash Plus failed on its own, I wouldn't have a problem. They were put in a corner. I knew it was a gamble but every month I got my interest, religiously. I am so upset, I'm really, really upset."
Monthly interest
Bryan, a teacher, said her monthly cheque from Cash Plus helped to supplement her salary. "My dream was to make another purchase [of a house] in a couple of months, now dat is gone." She however revealed that she is waiting patiently to hear what the final outcome will be. "Even if I lose some or everything, I still won't blame Cash Plus."
Like Bryan, Shirley Stanley, also invested some of the proceeds from the sale of a house. She used her monthly interest to pay her mortgage. It was going well until November. "Every month like clockwork, I got my interest. It helped me to pay off some credit card debts and I had purchased another property so I was using that money to fix that up."
Stanley resigned her job and was planning to use her interest to cover her living expenses. "It has impacted me", she said, "I don't know what I'm going to do now." Though she received returns on the over $1million she invested, she said, " I am still worried and now with the cease and desist, nobody knows what's happening. Even if I get back my principal, I can't take any more loans, so I just have to hold on and see what is happening."
The promise of having an addition to his monthly salary was what attracted Lennox Brown. He purchased a car after investing $100,000 and used his monthly returns to cover the payments. All was going well until six months after his investment. Now, his salary has to be stretched to cover all his usual expenses and the car. "I just have to hope it comes back up soon, or find another way to deal with it....I went into it with an open mind, but it still worries me. I hate losing and I don't like losing a cent."
Janet Higginsborrowed from a financial institution to invest into the scheme. She reaped only one month's return. While not willing to reveal how much she invested, she said the loss has affected the way she lives. "It put me back to a month to month existence. I'm not as comfortable as before. Now I can't afford any excesses. But it was a risk that comes with a price sooner or later. I have three kids to send to college, so I had to do something."
In late 2007, the Financial Service Commission (FSC) issued cease and desist orders on Cash Plus, its Chief Executive Officer Carlos Hill and Kahlil Harris. The order asked that "Cash Plus Ltd. et al immediately stop conducting securities business, including soliciting and accepting loans with members of the public until Cash Plus is licensed by the FSC."
*Names Changed