Financial crimes investigators looking into the collapse of several Cayman Islands-domiciled investment funds have made an arrest in connection with the case.
The suspect, a 47-year-old man, was taken into custody Wednesday on suspicion of theft, false accounting and uttering false documents. He’s been released on bail pending further investigations, and was not immediately identified.
Officers with the Royal Cayman Islands Police Financial Crimes Unit said the collapse of the funds is thought to involve millions of dollars. It’s still not known how many investors might be affected.
The Cayman Islands Monetary Authority announced last month that three investment funds it regulated and a fourth unregulated fund had been placed into voluntary liquidation after ‘irregularities’ were discovered in the funds’ trading activities.
The funds are called Grand Island Commodity Trading Fund I, Grand Island Commodity Trading Fund II, Grand Island Income Fund, and Grand Island Master Fund. Caymanian businessman Naul Bodden has been linked with at least one of the four entities, though his exact involvement in the funds is unclear.
A statement posted on a website for the non-profit organisation ‘Generation Now,’ of which Mr. Bodden is patron, indicates Mr. Bodden is the shareholder and director of a number of companies and manages ‘in excess of $100 million of diversified assets.’
A monetary authority statement said two joint voluntary liquidators from the firm PricewaterhouseCoopers were looking into the matter.
Money from a Canadian bank which may be linked to the funds’ collapse has been placed in receivership, in other words held or frozen by the receiver, which is PwC Corporate Finance and Recovery, Cayman Ltd.