The Cayman Islands Monetary Authority has filed a summons with the Grand Court asking that SEGOES Securities Ltd be ordered to supply information requested.
The law firm Maples and Calder filed the summons 16 December.
It asks that SEGOES, John Kaweske and John Fontanetta provide responses to requests made in an 11 November CIMA letter.
According to that letter, the request for information was made for three reasons.
One was the Authority’s continuing enquiry as to whether SEGOES or any affiliated entity is or has been in violation of any of the regulatory laws of the Cayman Islands.
The second reason was previous unanswered requests for information. The third reason was recent press releases, which SEGOES issued.
The 14 items of information sought in the November letter include details on the role and function of the SEGOES office in the Cayman Islands in relation to (1) SEGOES’ role as investment manager of Segoes Fixed Income Investment Limited, previously Segoes Bond Fund Ltd, and any other function it performs in relation to Fixed Income; and (2) all other business conducted by SEGOES.
The letter also requests the names of those involved in the management of SEGOES and a copy of a trial balance confirming total liabilities due to all clients and assets held to repay those liabilities.
The letter, signed by CIMA Managing Director Ms Cindy Scotland, indicates that the Authority looked forward to receiving the requested information by 4pm on 18 November.
The letter also advises that failure to provide the information without reasonable excuse is an offence under the Monetary Authority Law.
According to the Grand Court calendar, a hearing was held in the chambers of Mr. Justice Alex Henderson on 22 December, with attorneys from Maples and Calder representing CIMA. Attorney Clyde Allen represented SEGOES.
Chamber hearings are not normally open to the public. It is understood another date is being set for continuation of the matter.