Sterling Financial Group acquires Caledonian entities

Sterling Financial Group Inc., a financial services group based in The Bahamas, announced that its acquisition of Caledonian Trust (Cayman) Ltd. and Caledonian Directors Ltd. has been completed.

The companies have been renamed Sterling Trust (Cayman) Ltd. and Sterling Directors Ltd. and will continue their operations from the existing offices.

The acquired entities formed part of Caledonian Global Financial Services.

In February, the U.S. Securities and Exchange Commission sued two Caledonian entities, Caledonian Bank and its brokerage arm Caledonian Securities, for alleged U.S. securities law violations in connection with four penny stock pump-and-dump schemes.

Days after the civil lawsuit was filed and a temporary restraining order was granted that froze $76 million in funds held by Caledonian at its U.S. correspondent bank, a run on the bank by depositors forced the bank to suspend operations.

The Cayman Islands Monetary Authority installed two controllers who have since been sanctioned as official liquidators of Caledonian Bank and Caledonian Securities by the Cayman Islands Grand Court. Caledonian Trust and Caledonian Directors were not part of the lawsuit and had not been put under controllership by Cayman’s regulator.

The sale to Sterling Financial Group will preserve some of the jobs at Caledonian.

Caledonian started its operation offering trust, corporate, directorship and other fiduciary services in Cayman more than 44 years ago.

Nassau-based Sterling Financial Group is headed by Canadian real estate developer and investor David Kosoy. Sterling Financial Group and its related companies are licensed and regulated in both The Bahamas and the Cayman Islands, the company said.

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