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Rich Jamaican businessman under US probe
Sunday, March 21, 2010
THE finances of a well-connected Jamaican businessman, who heads a list of about 30 with massive unexplained wealth, is now the subject of intense scrutiny by the US authorities who have asked Jamaica to gather evidence about how the wealth was accumulated.
A Florida grand jury, which is investigating the activities of an investment organisation, made the request through the United States Attorney General's office to the relevant authority in Jamaica.
The Sunday Observer was told that the United States made the request to Jamaica late last year under the Mutual Legal Assistance Treaty (MLAT), and that that request was one of a few now before the Jamaican authorities.
Information reaching the Sunday Observer is that the businessman has long been under surveillance for illicit activities, including money laundering, as well as human and drug trafficking, even though he tries to operate below the radar.
US officials are said to have zoned in on the US$80-million he used to pay for a franchise, which has subsequently been broken down into several companies under one umbrella. One of the companies in particular has attracted the interest of the grand jury, necessitating the request.
The US believes that monies from the investment organisation were laundered through that specific company.
The purchase is said to have raised red flags in the United States, as although the fairly young businessman has access to immense cash, his personal wealth appears to be excessive.
The businessman has also been linked to the trafficking of Eastern European women between Jamaica and the Turks and Caicos Islands. The allegation is that he flew the women here, where they engaged in high-priced prostitution on the North Coast. After that, they were flown to the Turks and Caicos Islands.
On Friday, state officials declined to comment on the case, or any other, arguing that MLAT matters are confidential.
Contacted for comment on the MLAT process, former attorney general and minister of justice A J Nicholson referred the Sunday Observer to former National Security Minister Dr Peter Phillips who, he said, would be better able to provide information.
Dr Phillips told the Sunday Observer that he could not recall any MLAT request being denied by Jamaica during his tenure.
"I am not sure if there has been a change under this Government, but certainly up to my time, the designated authority in Jamaica was the DPP (director of public prosecutions). And there is a reason for this. This office is independent, and has investigating powers. A government must make sure that such investigations are carried out by such an office," Phillips said.
He said it was not automatic that the minister know of the requests, but out of courtesy, the relevant individuals may be advised by the ambassador of the requesting state before the request is finalised.
He said, however, that if the "particular situation is a sensitive matter, and one that will affect the country's reputation as a whole, the minister could be told by the DPP".
Under the treaty, the central authority in Jamaica is the minister of justice or his/her designee, while in the US it is the United States attorney general.
Before denying or postponing assistance, the central authority of the requested state is required to determine whether help can be given in whole, or in part, subject to such conditions it deems necessary.
However, if the requested state accepts such conditions, that state "is obligated to inform the requesting state as soon as possible of its reasons for denying or postponing assistance".
The treaty also requires that specific information be contained in the request, including but not limited to the law enforcement authority involved, the subject matter and nature of the proceedings for which the request is being sought, and the purpose for which the assistance is sought.
The central authority of each party to the treaty is also required to comply promptly .with a request or immediately advise the requesting state of any objections it has to its request.
However, a highly placed source here said that up to last Thursday the US has not received a response in relation to the businessman's case.
According to one source, the businessman is said to have boasted that he cannot be touched as he is protected by the Jamaican Government.
Last week, Dr Phillips lamented the damage being done to Jamaica's image in relation to treaty matters.
"We are not looking good at this moment with respect to respecting treaties," he said. "There is a growing question mark about the integrity of Jamaica's commitment to honour treaties or to be willing and committed parties in the effort against crime, money laundering, drug and human trafficking."
A Sunday Observer source said the US makes an average of three enquiries to Jamaica per month under the MLAT.
Rich Jamaican businessman under US probe
Sunday, March 21, 2010
THE finances of a well-connected Jamaican businessman, who heads a list of about 30 with massive unexplained wealth, is now the subject of intense scrutiny by the US authorities who have asked Jamaica to gather evidence about how the wealth was accumulated.
A Florida grand jury, which is investigating the activities of an investment organisation, made the request through the United States Attorney General's office to the relevant authority in Jamaica.
The Sunday Observer was told that the United States made the request to Jamaica late last year under the Mutual Legal Assistance Treaty (MLAT), and that that request was one of a few now before the Jamaican authorities.
Information reaching the Sunday Observer is that the businessman has long been under surveillance for illicit activities, including money laundering, as well as human and drug trafficking, even though he tries to operate below the radar.
US officials are said to have zoned in on the US$80-million he used to pay for a franchise, which has subsequently been broken down into several companies under one umbrella. One of the companies in particular has attracted the interest of the grand jury, necessitating the request.
The US believes that monies from the investment organisation were laundered through that specific company.
The purchase is said to have raised red flags in the United States, as although the fairly young businessman has access to immense cash, his personal wealth appears to be excessive.
The businessman has also been linked to the trafficking of Eastern European women between Jamaica and the Turks and Caicos Islands. The allegation is that he flew the women here, where they engaged in high-priced prostitution on the North Coast. After that, they were flown to the Turks and Caicos Islands.
On Friday, state officials declined to comment on the case, or any other, arguing that MLAT matters are confidential.
Contacted for comment on the MLAT process, former attorney general and minister of justice A J Nicholson referred the Sunday Observer to former National Security Minister Dr Peter Phillips who, he said, would be better able to provide information.
Dr Phillips told the Sunday Observer that he could not recall any MLAT request being denied by Jamaica during his tenure.
"I am not sure if there has been a change under this Government, but certainly up to my time, the designated authority in Jamaica was the DPP (director of public prosecutions). And there is a reason for this. This office is independent, and has investigating powers. A government must make sure that such investigations are carried out by such an office," Phillips said.
He said it was not automatic that the minister know of the requests, but out of courtesy, the relevant individuals may be advised by the ambassador of the requesting state before the request is finalised.
He said, however, that if the "particular situation is a sensitive matter, and one that will affect the country's reputation as a whole, the minister could be told by the DPP".
Under the treaty, the central authority in Jamaica is the minister of justice or his/her designee, while in the US it is the United States attorney general.
Before denying or postponing assistance, the central authority of the requested state is required to determine whether help can be given in whole, or in part, subject to such conditions it deems necessary.
However, if the requested state accepts such conditions, that state "is obligated to inform the requesting state as soon as possible of its reasons for denying or postponing assistance".
The treaty also requires that specific information be contained in the request, including but not limited to the law enforcement authority involved, the subject matter and nature of the proceedings for which the request is being sought, and the purpose for which the assistance is sought.
The central authority of each party to the treaty is also required to comply promptly .with a request or immediately advise the requesting state of any objections it has to its request.
However, a highly placed source here said that up to last Thursday the US has not received a response in relation to the businessman's case.
According to one source, the businessman is said to have boasted that he cannot be touched as he is protected by the Jamaican Government.
Last week, Dr Phillips lamented the damage being done to Jamaica's image in relation to treaty matters.
"We are not looking good at this moment with respect to respecting treaties," he said. "There is a growing question mark about the integrity of Jamaica's commitment to honour treaties or to be willing and committed parties in the effort against crime, money laundering, drug and human trafficking."
A Sunday Observer source said the US makes an average of three enquiries to Jamaica per month under the MLAT.