Outspoken attorney-at-law, Anslem Clouden, says the time has come for an investigation to be carried out into possible fraud at Capital Bank International Ltd.
Speaking at a news conference in St. George's, Clouden claimed that there have been serious breeches of the Banking Act at the financial institution that was recently forced into receivership.
The lawyer, representing some 10 persons who deposited approximately three million dollars at the bank, said that his clients are in dire need of their money from the bank that was set up by city businessman, Finton De Bourg.
Clouden said that based on his own private investigation it was discovered that the largest loan portfolio of CapBank was Native Hut Limited to the tune of $30 million, a company owned by DeBourg who is the CEO of the local bank.
He stated that the time has come for the Minister of Finance, Prime Minister Dr Keith Mitchell to discharge his financial duties under the banking act to cause a fraud investigation to be conducted into the Capbank affair.
This probe, he suggested can be done by the Financial Intelligence Unit (FIU) of the Royal Grenada Police Force (RGPF), or international agencies such as Scotland Yard in Britain or the Federal Bureau of Investigation (FBI) in the United States to determine where those monies are.
One depositor who is in desperate need of his money is said to be 79-year old Joseph Cox, who is in need of surgery. Cox is said to have some $5,000.00 at the bank.
Clouden said that both he and his law firm partner, Dr Francis Alexis are becoming very concerned about the secrecy surrounding the conduct of the court-appointed receiver, David Holukoff over his initial report to the court.
He said it will appear that the Minister of Finance is in breach of his fiduciary duty in respect to protecting depositors funds.
He added that nothing has been done by the minister by way of a an address to the nation indicating what is the status of the bank and depositors monies.
The attorney said it is alarming that some 15 days since the receiver of the bank handed in his report in a sealed envelope to the Court and no one has commented on his initial findings.
Clouden pointed out that his law firm is concerned about depositors money at Capbank taking into account the number of offshore banks that were liquidated in recent years in Grenada with very few depositors receiving their monies.
He said that his clients are also concerned about who will be paying the receiver and from where the money will come from.
He announced that papers have since been filed in the Supreme Court Registry for leave of the judge to have a Liquidator appointed since he feels strongly that there is a conceited effort to protect the assets of the bank rather than address the needs of the depositors.
According to Clouden, this is clearly evident in a letter issued to his Chambers from Holukoff's attorney which states in part: "As you are no doubt aware, our client's duty as receiver, as opposed to a liquidator for example, is to collect and get in the assets and property of the Bank and to account accordingly, at the expiration of his appointment."
Clouden said the depositors of Capbank are hurting and that the matter needs to be dealt with urgently.
He promised to do everything possible including pressing criminal charges against DeBourg to ensure that depositors receive their monies from his bank.
