VZCZCXRO6871
RR RUEHDE RUEHGR
DE RUEHKG #0806/01 2821435
ZNR UUUUU ZZH
R 091434Z OCT 09
FM AMEMBASSY KINGSTON
TO RUEHKG/AMEMBASSY KINGSTON
INFO EC CARICOM COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHAD/AMEMBASSY ABU DHABI 0001
RUEHDE/AMCONSUL DUBAI 0001
RUEHLO/AMEMBASSY LONDON 0040
RUEHOT/AMEMBASSY OTTAWA 0038

UNCLAS SECTION 01 OF 02 KINGSTON 000806 
 
SENSITIVE 
SIPDIS 
STATE FOR WHA/CAR (JMACK-WILSON)(RALVARADO)(VDEPIRRO)(WSMITH) 
WHA/EPSC (MROONEY) (FCORNEILLE) 
EEB/IFD/OMA 
WHA/PPC (JGONZALEZ) 
INR/RES (RWARNER) 
INR/I (SMCCORMICK) 
SANTO DOMINGO FOR FCS AND FAS 
TREASURY FOR ERIN NEPHEW 
EXPORT IMPORT BANK FOR ANNETTE MARESH 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV PGOV PREL KCRM KCOR JM XL UK AE
SUBJECT: JAMAICA: EARLY CHRISTMAS FOR CASH PLUS INVESTORS? 
 
Summary 
 
------------ 
 
¶1. (SBU) Investors in the failed alternative investment scheme, 
Cash Plus, could have an early Christmas, if liquidator Hugh 
Wildman is able to reclaim USD 25 million discovered in an offshore 
account in a Swiss bank in Dubai.  The accounts were in the names 
of Carlos Hill, the embattled head of Cash Plus, his brother 
Bertram and John Doe.  Wildman told a press conference that he has 
assembled a legal team of British lawyers to assist in the recovery 
of the funds on behalf of the depositors of Cash Plus.  Wildman is 
also trying to retrieve USD 16 million paid on two properties in 
Jamaica.  These funds, combined with proceeds from the sale of 
other assets, should go a far way in settling most of the almost 
USD 60 million in claims received to date.  End summary. 
 
Divine Discovery 
 
--------------------- 
 
¶2. (SBU) After almost a year in the job, Hugh Wildman, the 
court-appointed liquidator and Trustee in Bankruptcy for Cash Plus, 
has located USD 25 million stashed away in bank accounts in the 
United Arab Emirates (U.A.E.)state of Dubai.  Wildman told 
journalists that the accounts were discovered at the international 
offshore banking center branch of Bank Julius Baer (Middle East) 
Limited.  He said the discovery was "nothing short of a divine 
intervention," as the lead was provided by an anonymous source out 
of Dubai.  He said the tip from the apparent insider source 
provided him with a detailed plan of the process required to locate 
the funds. 
 
Hill Continues to Deceive 
 
--------------------------------- 
 
¶3. (SBU) The court appointed liquidator disclosed that to date the 
investigation has  located four accounts in the names of: Carlos 
Hill, embattled Chairman and CEO of Cash Plus; his brother, Bertram 
Hill; the Hill Group of Companies; and, John Doe.  Wildman said the 
information also comes just weeks after a heated meeting with Hill 
and his lawyers at which time the accused told the liquidator he 
had no funds outside of Jamaica that could be brought back to pay 
depositors.  This development should finally convince loyal Cash 
Plus investors of Hill's apparent criminal intent, as it adds to 
his history of conviction for crimes of racketeering, mail fraud, 
and of making a false statement in the U.S. in the 1990s. 
 
¶4. (SBU) The discovery of the hidden accounts prompted Wildman to 
file another application for additional freezing orders against the 
Hill brothers.  The orders demand that the Hills to make a full 
disclosure of the assets they have both locally and abroad.  This 
disclosure, under oath, is expected in seven days and has a penal 
clause stating that failure to comply will be treated as contempt 
of court, subjecting the defendants to imprisonment.  In addition 
to the USD 25 million, the liquidator is trying to secure USD 16 
million in deposits paid on the Hilton Hotel in Kingston and the 
Drax Hall Estate in the resort town of Ocho Rios.  Several pieces 
of less pricey real estate are also being liquidated. 
 
British Team Assembled 
 
------------------------------- 
 
¶5. (SBU) After satisfying himself that the tip was legitimate, 
Wildman assembled a team of British lawyers.  The lawyers, who also 
have a practice in Dubai, were successful in serving an injunction 
on the Swiss bank requesting the freezing of Hill's assets. 
Wildman disclosed that, since the particular branch of the bank 
operated in the financial offshore center, it falls under British 
and not U.A.E. jurisprudence.   As a consequence, the lawyers were 
able to serve the bank a freeze order through the British court 
under the Mareva injunction.   The initial application was heard 
 
KINGSTON 00000806  002 OF 002 
 
 
two weeks ago in a Dubai court, which after extensive arguments 
granted the freezing orders against the four accounts.  The issue 
has gone back to court with a second ruling in favor of the 
Jamaican liquidator. 
 
Hurdles Still Abound 
 
-------------------------- 
 
¶6.  (SBU) However, Wildman was quick to caution that the other 
branch of the Swiss bank operates under U.A.E. law, which could 
pose some challenges going forward.  He noted that the bank was 
already putting up fierce resistance as it appears to be in breach 
of British laws, as it is not a deposit-taking institution. 
Wildman said it was for this very reason that the lawyers had 
decided to go after the branch, which operates under British 
jurisdiction.  The liquidator, while confident of a speedy 
resolution, is nevertheless harboring fears that the bank will not 
cooperate.  He also posits that, if the case were to be tried under 
U.A.E. law, it could take much longer to resolve. 
 
Comment 
 
------------- 
 
¶7. (SBU) The recent discovery of funds stashed away in secret bank 
accounts is the first piece of good news for Cash Plus investors in 
over a year.  Most investors had already given up hope of ever 
being repaid.  The news has therefore led to renewed optimism, with 
a number of investors flocking to the office of the liquidator to 
get additional information.  However, it would appear that this new 
episode of the Cash Plus saga is far from over and the liquidator 
might well have been premature in his disclosure that investors 
could be paid part of their deposits by Christmas.  The revelation 
of the existence of this money could also lead to a flood of new 
claims, diluting any possible payout.  However, in the final 
analysis, the discovery must be viewed as a positive development as 
it sheds new light on the intention of the operators of these 
unregulated schemes.   End Comment. 
Parnell