CL Financial, CLICO – one huge unsustainable Ponzi Scheme
“Lawrence Duprey was paid $90 million a year from the deposits of policyholders in collapsed insurance company CLICO, attorney Neal Bisnath said yesterday.”
“CLICO invested US$445 million of policyholders’ money in a Florida real estate project called Capri, while the investment was worth only US$200 million.”
If Prime Minister David Thompson was alive today, he would have some difficult questions to answer about his activities as CLICO’s lawyer, and about how he and his government participated in building the house of cards Ponzi scheme known as CLICO. The public deserves the truth about what Thompson knew, what he did – and how his long-term service putting deals together for CLICO, Duprey and Parris put him in numerous conflicts of interest as Prime Minister.
David Thompson knew that CLICO policy holders were paying outrageous money to Duprey and Parris – probably illegally with no segregation of funds even where the rules called for this. David Thompson knew that the payments were being hidden. David Thompson was CLICO’s lawyer when ten years of accounting records were illegally withheld.
“We know now that on May 15, 2005 while acting as CLICO’s lawyer, David Thompson signed a secret contract between CLICO and Leroy Parris’ private company that in effect deceived shareholders into believing that Parris was being paid less than he really was.”
…from the BFP article Leroy Parris’ defence of Prime Minister David Thompson rings hollow now
David Thompson knew that CLICO was being raped by Duprey and Parris. David Thompson was part of it and you can bet that when he became Prime Minister his senior Cabinet members had to have known the truth too. That house of cards was wobbling long before it collapsed – and the Thompson-Stuart government covered up and protected Leroy Parris for as long as they could. After all, the government politicians got their bizjet rides, the DLP got its funding and Thompson’s law firm got big contracts – paid for with policy holders’ funds.
Now the only “solution” that the Thompson/Stuart DLP Government can come up with is for taxpayers to “invest” more money. Well, I guess that’s better than riots in the streets.
As for Leroy Parris and Lawrence Duprey – they laughed all the way to the bank and they are laughing still. There are hundreds of millions of assets missing, just vanished into thin air at the end of fraudulent paper trails, but nobody will go to jail for this massive fraud and breach of the public trust. No big shot ever goes to jail in Barbados.
This Barbados Today article lays it all out…
Bisnath made the statements as he cross-examined Michael Carballo, the former group financial director of CL Financial, during the commission of enquiry into the collapse of CL Financial and the Hindu Credit Union at the Winsure Building, Richmond Street, Port of Spain, yesterday.
Bisnath said CLICO’s cash stream was also used to fund investments made by CL Financial.
“Is it true to say that from what we have seen CLICO was really used as a cash cow in the group?” Bisnath asked Carballo.
“Yes, because CLICO was really the one that had the cash flowing in it,” Carballo said.
“And that cash that was flowing happened to be policyholders’ money and Mr Duprey and CL were using CLICO policyholders’ monies without regard to the risk that it was putting those policyholders under,” Bisnath said.
Bisnath described Duprey as a “great investor of other people’s money”.
He said CLICO invested US$445 million of policyholders’ money in a Florida real estate project called Capri, while the investment was worth only US$200 million.
“We know in taking on risks he (Duprey) used policyholders’ money, not his personal money; and when you use OPM, other people’s money, you can have all kind of fancy dreams and you can make all kind of fancy investments because if you lose it, it is not your money you are losing,” Bisnath said.
“He (Duprey) could therefore have a bold and aggressive attitude toward business, and an insatiable risk appetite because it was not his money he was using,” Bisnath said.
Read the entire story at Barbados Today: Duprey paid $90 million a year
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