Cash Plus getting ready to be licensed in Jamaica, says Hill

[Dr.Dudd]

Cash Plus getting ready to be licensed in Jamaica, says Hill - But FSC says no application made

10/12/2007 8:17:00 PM ET
Jamaica Gleaner


Carlos Hill

Cash Plus boss Carlos Hill has said his company was on course to be licensed as a dealer in securities, but the Financial Services Commission (FSC) has brushed the claim aside saying the process would have had to be kick-started by an application, but had got none from Hill.'The FSC does not have an application before it for either the licensing of Cash Plus as a securities dealer or the registration of its securities,' said deputy executive director George Roper.'The FSC does not license or register persons unless they have met all applicable requirements including the submission of the appropriate application to the FSC.'A request to Hill Monday to respond to the FSC's comment was not forthcoming.

The company, which operates a diversified portfolio of businesses, is best known for its high return investment scheme which pays 10 per cent per month on local currency investments and 8.0 per cent on U.S. dollar placements.

Up to 18 % interest rate

A rate sheet obtained by the Financial Gleaner shows that Cash Plus is now offering up to 18 per cent interest per month or 216 per cent per year on Jamaican dollar investments if funds are rolled over for five years, while U.S. dollar investments for a similar period are promised returns of 16 per cent or 172 per cent per year. Funds that are not locked in - that is, investors who are paid monthly returns - earn three points less.

Investors who lock in their funds for longer periods command higher returns, ranging between 12 per cent and 18 per cent on funds placed with Cash Plus for three months to five years. Clients who opt for a monthly cheque are paid returns of 10 per cent to 15 per cent.

The Cash Plus boss in an interview done at his New Kingston office had said his organisation was on course to be licensed, having taken the necessary steps to meet the requirements set out by the FSC.'Nobody could ever say that our companies have never been open to scrutiny,' said Hill. 'We, however, will be taking the next step to be regularised; to meet the fit and proper requirements of the FSC.'Hill said Cash Plus was having its books audited by an accounting firm as part of the process.

No later than November 'We expect to have this published no later than November of this year. We are also in the process of putting together our board of directors and an executive management team in place; this also should be completed by the end of November,' he said.'These are some of the main things that are required by the FSC and we are moving to meet these requirements.'Roper, however, said the FSC could neither approve nor deny Cash Plus a licence, since the company had not requested one.

Under the Securities Act, which is policed by the FSC, all persons offering investment advice or dealing in securities have to be licensed by the FSC. To be licensed, dealers and advisors have to hurdle a 'fit and proper' test that looks into their background.

The company does not comment on the value of its business, nor the revenues it commands, but has made downpayments on a number of assets in deals worth more than $14 billion.'Our detractors will be amazed at the growth and accomplishments of Cash Plus in such a relatively short period of time and the audited financial statements will once and for all put to rest all the negative comments and speculations,' said Hill. - Garwin Davis


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[Dr.Dudd]

Re: Cash Plus getting ready to be licensed in Jamaica, says Hill

Check for your self here http://www.cashplusltd.com

[evanovitch]

Doc come yah come update mi pon dem latest touriss venture

question...dis property dem a open whe offa gambling an is a gentleman's club whe offah massages outside, whe all dat really mean...since u know all dat gwane a yaad, doc, tell mi di real suss an not di PR [img]/forums/images/%%GRAEMLIN_URL%%/70402-thinking.gif[/img]

[Tuff Gong]

Re: Doc come yah come update mi pon dem latest touriss venture

<span style='font-size: 14pt'>Will the real Carlos Hill please stand up?</span>

Friday, November 09, 2007

Case 42 F.3d page 914 reads: "United States of America (Plaintiff-Appellee vs Carlos Hill, (Defendant-Appellant).
United States Court of Appeals, Fifth Circuit, January 9, 1995 (Page 915)".

Indicted on 14 counts, Hill pleaded guilty to the first: conspiracy to commit wire fraud, in violation of 18 USC Sections 371 and 1343.

The factual basis for the plea may be briefly summarised as follows: Between May and December 1990, co-defendant David Arthur Lloyd represented to Hill that a person (fictitious) owned Government National Mortgage Association (GNMA) securities, and had executed a trust agreement, assigning the securities to Lloyd or his company, as trustee. Lloyd obtained valid GNMA pool numbers and used them to create the necessary documents, such as negotiable promissory notes and pledge agreements.

Hill, who became aware of the fraudulent nature of the scheme, agreed with Lloyd to 'rent' the GNMA securities to individuals or companies who needed assets for use as collateral, or to enhance their balance sheets. In December 1993, the district court sentenced Hill to 57 months' imprisonment with the sentence to run consecutively to a prior undischarged sentence of imprisonment imposed by a federal court in New Jersey for an unrelated offence.

In short, what this Carlos Hill did was to use dubious assets to make balance sheets look better than they really were, in other words he created an illusion which constituted a deception. No reputable auditor would ever put his or her name over the accounts of an entity that has a dodgy reputation - not a PriceWaterhouseCoopers, not an Ernst&Young, not a Deloitte. The quality and reputation of an auditor's signature over the accounts is always a telling story.

http://www.jamaicaobserver.com/magazines...E_STAND_UP_.asp

<span style='font-size: 14pt'>Cash Plus - more questions than answers</span>

Friday, November 09, 2007

As speculation swirls around Cash Plus and the company threatens legal action against persons spreading "malicious rumours," Caribbean Business Report takes a look at the various issues confronting Cash Plus.

Issue # 1 - Bankers' blockage
In a series of advertisements, Cash Plus states that it enjoys a good working relationship with its bankers. However, sources tell this newspaper that at least two commercial banks have informed its staff not to prepare cheques payable to or accept cheques from Cash Plus. Additionally, there is word that banks have started to issue sanctions against workers who are known to process loans for customers who then take the money to Cash Plus.

Reliable sources say that in response, Cash Plus will be issuing debit Mastercards to their clients to ensure that they have access to money as more and more banks restrict their relationship with Cash Plus.

The five commercial banks were approached in order to obtain a definitive position on their relationship with Cash Plus. The official word from First Global Bank (FGB) is, "FGB accepts cheques drawn on any licensed/approved financial institution, as required by the Bank of Jamaica, irrespective of the drawer." Kerry Ann Betton Stimpson, marketing manager added that, "FGB has also taken no such decision, not to issue cheques payable to Cash Plus."

Information reaching the Observer is that RBTT will, as of December 15, no longer process cheques received from Cash Plus. A source in the executive ranks stated that the RBTT executives are in a planning retreat in the country, however, he is not aware of such a directive.

Joylene Griffiths Irving, director of corporate communications at the Bank of Nova Scotia Jamaica stated that, "We have no comment at this time. As you know, Cash Plus is a sensitive matter."

In regards to the National Commercial Bank (NCB), information reaching this newspaper is that NCB customers say that the bank is deliberately slowing the processing of cheques received from Cash Plus. Courtney Campbell, head of retail banking responded, "NCB is a well-respected institution. We handle all our customers with the highest degree of professionalism."

Campbell went on to say that he cannot confirm or deny that his bank will no longer process Cash Plus cheques or that NCB is deliberately slowing the process of such cheques.

"I can't comment on that. Any arrangement with our customers is something that I cannot speak about. We have a duty of secrecy."

Milton Brady, head of First Caribbean International Bank was said to be in meetings and was unable to comment.

Issue #2 - Financial statements
Cash Plus has promised that it will publish financial statements before yearend to satisfy detractors who question the business model.

An investment analyst who spoke on the condition of anonymity explained the situation this way: "Financial statements are laughable. now they can show assets, because the company purchased over 80 companies with other people's money. But are those companies profitable and all cash flow positive? That is the real question."

Another problem analysts have with the company is the way it includes assets in its portfolio. Another broker speaking confidentially stated, "What Cash Plus does is as soon as they pay down some money they make a big production in the media that they have bought property. What is their real ownership of the 80 companies they say they own?"

Which leads to the third issue - has Cash Plus actually bought the assets it says it has - especially the Hilton Kingston Hotel and Mainland International Hardware?

Issue #3 - Show me the money
Critics say that Cash Plus has not paid over the sums owed. There are reports that in most cases only a deposit has been paid over and that the monthly payments on the properties are not forthcoming. Without the financial statements and property deeds, it is hard to say. Nevertheless, sources close to Ron Kelly, the former owner of the Hilton Kingston Hotel, say that he is indeed receiving his interest payments from Cash Plus at his home in New England. And according to Garth Walker, vice president of marketing at Mainland, he is not aware that Cash Plus has not made its monthly payments.

Issue # 4 - Investor confidence
The lack of transparency fuels the rumour mill. Cash Plus has not convincingly answered the question as to how it makes money. What the company has stated in the media is that "self-serving individuals who talk against Cash Plus risk hurting the investment/trading community." A search of one online blog (http://cashplusinvestment.com/rumors/) reveals that investor sentiment on Cash Plus is split down the middle.

<u>For Cash Plus:</u>

I mean because of Cash Plus and all these other investments clubs, poor people are really seeing a little light at the end of the tunnel. Have you ever seen the financial statements for the banks and see how much billions of dollars they make each year. I must commend Mr. Carlos Hill for doing a great job. Being a member of Cash Plus for one year I was able to purchase a brand new car, something I never dreamt of doing with just my meagre salary.

<u>Against Cash Plus:</u>

Well, it so turns out that my cousin's husband works with the bank that Cash Plus banks with. He told me that the cheques are coming in faster than there is money in the account. In fact yesterday he said that three cheques came in for three "very prominent individuals" that when combined was so much that it almost put one of their operating accounts into overdraft. So, it would seem that all the "society" people taking out their money and how much are you willing to bet that is poor people money this thing going down wid.

In fact I was watching the news on TVJ tonight and the operations director was being interviewed, trying to alay the fears of the investors. The only suspicious part of this is that he was off camera. What would he be afraid of? Couldn't he come and look directly into the camera and tell the investors that the company not crashing? Or better yet. if you have nothing to hide get the director of communications to do it.

http://www.jamaicaobserver.com/magazines...HAN_ANSWERS.asp

[Dr.Dudd]

Re: Doc come yah come update mi pon dem latest touriss venture

Every bank is protecting their bottom line eh!!
Of course they have to create the problem for the interlopers,but who cares?
With all the information about account 'nearly' overdrawn,that is soo common that it just don't look like cricket. Sorry wrong example, with all the recent goings on in cricket. It just may be cricket.

[evanovitch]

Re: Doc come yah come update mi pon dem latest touriss venture

so weh bout di gentleman club...is dat a euphemism fi di ole u know wat [img]/forums/images/%%GRAEMLIN_URL%%/70402-thinking.gif[/img]

[Dr.Dudd]

Re: Doc come yah come update mi pon dem latest touriss venture

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: evanovitch</div><div class="ubbcode-body">so weh bout di gentleman club...is dat a euphemism fi di ole u know wat [img]/forums/images/%%GRAEMLIN_URL%%/70402-thinking.gif[/img] </div></div>
Probably Greek gymnastics?? [img]/forums/images/%%GRAEMLIN_URL%%/confused.gif[/img]

[Tuff Gong]

Re: Doc come yah come update mi pon dem latest touriss venture

'I VIOLATED UNITED STATES LAW' - But the gov't returned my money, says Cash Plus boss
published: Sunday | November 25, 2007

Garwin Davis, Sunday Gleaner Writer

He has been called the mystery man - the person behind several acquisitions totalling in excess of J$5 billion over the last six months alone!

But with these investments and the rapid rise of his five-year-old company - Cash Plus - comes the question which seems to be on everybody's mind: Who is Carlos Hill?

"I am a banker by profession, who, borrowing a quote from author Napoleon Hill, believes that 'whatever the mind of man can conceive, it can achieve'," Hill tells The Sunday Gleaner. "I believe in the Jamaican spirit and I believe in Jamaica. This is a wonderful time to believe in Jamaica.

Cash Plus provides the opportunity for more people to accomplish their goals, both personally and financially. And if anything, our situation is getting better with each passing year."

Is there any truth to rumours that he ran afoul of the law while residing in the United States? "Yes, that's true, but it's nothing that I cannot stand up and defend," Hill responds.

"My family migrated to the United States in 1967 where, at a young age, I ended up in banking. I worked with one of the largest minority banks in New Jersey, where later on, I would end up being the president. I eventually got bored and got my own company."

He continues: "We were doing portfolio loans and were very successful at it. We would later run into problems, in that, we loaned out too much money and weren't able to fulfil some of our obligations. I was in violation and the U.S. Justice Department asked me if I would cooperate. The year was 1986. If you have never had a failure in life then you will never be able to appreciate what true success is.

"I have learned from that ordeal and I am a much better person today. The U.S. authorities shocked me by giving me back my loan portfolio in the end, and I have made good use of it."

Asked whether the recent high-profile acquisitions, such as the Hilton Kingston hotel, Drax Hall Estate and Mainland International, were solid business deals in the sense that they could generate enough money monthly to keep Cash Plus in business, Hill responds: "Yes, our businesses generate enough by way of profits to satisfy our client base."

Array of businesses

He adds: "It is not only those acquisitions we would be depending on. That's the mistake our detractors have been making in trying to find out our trade secrets. We are also involved in food distribution throughout the Caribbean and also in North America. Our returns on that are huge.

"We have built up an array of businesses, as is evident by our foray into areas such as telecommunications, finance, hospitality, gaming, real estate, air transport, and now hardware.

"You tell me, prior to these problems that are certainly no fault of ours, have you heard any of our customers complaining about Cash Plus?"

Hill continues: "Cash Plus is only five years old but, as we can all see, we are not afraid to take on what some may view as the impossible. Once we have done our due diligence and we conclude that a deal is feasible, then we apply the laws of the marketplace. The market is where buyers and sellers of products and services meet and if we feel that we can be profitable in our acquisitions, then more often than not, we will be interested."

Final payments

But what about those who say that the announced acquisitions of Mainland International for J$420 million (US$60 million), Drax Hall Estate for over J$7 billion (US$110 million), and the Hilton Kingston hotel J$320 million (US$42 million), have not been finalised? "It pains our detractors to admit that Cash Plus is the largest development company in Jamaica today," Hill asserts.

"The Hilton will be paid for in full within the next nine months; Drax Hall is an exciting new project that will be paid off in full by next October, and the same thing goes for Mainland. We are not a debt-ridden company. I don't believe in debts … I don't like owing people. I will not sit back and allow people to defame Cash Plus anymore," he states.

And to those who remain convinced that his business methods are so unorthodox that it is difficult to see how they could be sustainable? "Not because a method has never been tried before means it is unworkable," Hill argues. "Our detractors will find every way to try to beat us down but as you can see, that strategy has been failing miserably."

http://www.jamaica-gleaner.com/gleaner/20071125/lead/lead1.html