Failed funds in court today

A petition will be heard in Grand Court this afternoon seeking court supervision of several failed investment funds that went into voluntary liquidation last month.

Joint Voluntary Liquidators Nick Freeland and David Walker had the petition filed with respect to Grand Island Commodity Trading Fund I, Grand Island Commodity Trading Fund II, Grand Island Income Fund and Grand Island Master Fund.

Mr. Freeland was not in a position to say much about the matter.

‘It is still early in the liquidation and investigation process and as such it is not appropriate for us to comment at this stage,’ he said.

‘In addition, I note that this is essentially a private matter between the joint voluntary liquidators and the shareholders of the various funds. We intend to form a liquidation committee for each of the funds in the near future and it will likely be at this forum we discuss future press releases.’

Mr. Freeland was able to shed some light on another related matter that came to court on 9 July with regard to a company called Caribbean Commodities Ltd.

‘I confirm that PwC Corporate Finance & Recovery (Cayman) Ltd, a company wholly owned by PricewaterhouseCoopers Cayman Islands, was appointed as receiver over various accounts held at ScotiaMcLeod in Canada,’ Mr. Freeland said.

‘The purpose of the receivership appointment is to facilitate the repatriation of monies held in accounts at ScotiaMcLeod back to the Cayman Islands and for these monies to be held in custody by the receiver until such time the various parties who may have an interest in the monies can determine the proper allocation of the monies.’

The Register of Members shows that leading Cayman businessman Naul Bodden owns 70 of the 100 issued shares in Caribbean Commodities Ltd. Mr. Bodden has also been linked to the Grand Islands Funds.

The other 30 shares of Caribbean Commodities Ltd. are owned by R. Christopher Girvan, Naul Clayton Bodden and David Allen Bodden as Trustees of the Samlejoe Family.

David Bodden owned five shares in his own name earlier this year, but transferred them to his brother Naul on 22 February pursuant to written resolutions dated 21 February.

Mr. Girvan had at one time owned 40 shares in the company when Naul Bodden owned 60, but those shares were subsequently transferred.

Contacted this week, Mr. Girvan said: ‘I’m going to have no comment. The police have asked me not to comment.’

On Wednesday, detectives from the Royal Cayman Islands Police Service Financial Crimes Unit arrested a 47-year-old man on suspicion of theft, false accounting and uttering false documents in conjunction with the collapse of the Grand Island funds. The funds are thought to involve millions of dollars.

‘The FCU is unsure of how many people are affected by its collapse,’ the RCIPS release said. ‘Investigations are ongoing into the matter and detectives would like those with information or knowledge to come forward. Anyone who can assist should contact Detective Sergeant Claire Jackson on 949-8797.’