Financial services manager arrested in United States

Suspect was before Cayman court in drug probe

A private equity funds manager who was arrested at his office in Grand Cayman this spring in connection with a drugs probe conducted by local police and customs officers has found himself on the wrong side of the law again in Connecticut, USA.

Ryan Kenneth Schroeder pleaded guilty in Cayman Islands Summary Court July 3 to possession of 0.064 grams of cocaine, as well as consumption of cocaine. His sentencing was set for Sept. 26.

According to the Royal Cayman Islands Police Service, Mr. Schroeder, 40, was given his U.S. passport and allowed to travel following a July 4 appearance before the Cayman Islands Drug Court. Bail was granted with a cash bond of $8,000 and a local surety of $1,000, according to court records.

The stated purpose of the travel was to undergo drug rehabilitation, after which Mr. Schroeder was expected to return to Cayman to face sentencing. His initial arrest occurred May 24 at Intertrust.

Mr. Schroeder appeared this week before the Connecticut State Court charged with misdemeanor larceny and was ordered to appear again on Aug. 27 after police said he ran out on a US$178 taxicab bill.

Police in Darien, Connecticut, said Mr. Schroeder was picked up at New York’s LaGuardia Airport on July 25 and driven to an apartment in the small town. Police said he attempted to pay the hefty cab bill with a credit card – it was declined – after which Mr. Schroeder went to his apartment and did not come back to the taxi.

The driver called police, who went in to search the apartment.

According to a Darien Police Department report on the incident: “Officers observed that the door to [the] apartment had been forced open and was unsecured. A short time later, a subject identified by his United States passport as Ryan Schroeder came to the door. Schroeder stated that he just moved to the apartment from the Cayman Islands and said that he forced the door into the apartment because he didn’t have a key and his other family members were not home.

“Schroeder stated that he was unaware why his credit card was declined and that he had no other means of paying the driver. He also claimed that he had lost his wallet as soon as he entered the apartment. Phone contact was then made with Schroeder’s family members who verified that his name was on the lease and he was permitted to be at the apartment, but had arrived unannounced.”

Mr. Schroeder was arrested because he could not pay the outstanding cab fare and had to appear in the Connecticut court on Monday.

RCIPS officials confirmed Mr. Schroeder was expected to return to Cayman for sentencing, but said they could not give more information regarding the Cayman drugs incident because the probe was being led by HM Customs service. Emails seeking comment on the case from customs officials were not returned by press time Wednesday.

HM Customs has made a number of drugs arrests since early this year, including the arrests of two of its own officers and a Cayman Airways employee during May.

Those arrests followed an April 29 arrest of two men, including a second Cayman Airways employee, at Miami International Airport on drugs importation charges. Thus far, department leaders have not connected any of the arrests.

Compass journalist Carol Winker contributed to this report.