Topic: Caledonian Bank

More than seven years after Cayman's Caledonian Bank collapsed, liquidators still have US$1.77 million of unclaimed money that they are struggling to pay out to people who held accounts at the bank.

The Caledonian building and solar car park in George Town has gone on the market as its liquidators attempt to recover some cash from the defunct company to pay off its creditors.

The pair of stories that lead today’s newspaper not only do damage to Cayman’s image as a transparent and well-regulated financial jurisdiction, but also challenge the substance of that assertion.

Documents submitted by the U.S. Securities and Exchange Commission to a U.S. court in February have shed new light on the involvement of Caledonian executives and clients in trading securities used in four penny stock manipulation fraud schemes.

The owner of Caledonian Bank and Caledonian Securities has filed a motion to intervene in the settlement proposed by the U.S. Securities and Exchange Commission and Caledonian’s liquidators.

Caledonian Bank and the U.S. Securities and Exchange Commission have agreed to a settlement that permanently bars the Cayman bank and its subsidiaries from trading in penny stocks and imposes a $25 million fine, though the U.S. regulator says it will forgo the payment so Caledonian can pay its creditors.