ANSA bank sues 6 ex-employees, used-car dealers for fraud

A High Court judge has frozen the assets of six former employees of ANSA Merchant Bank to the tune of $27 million.

The interim order was made by Justice Frank Seepersad, on Monday, as part of a claim the bank has filed against the six former employees and six roll-on/roll-off used car dealers.

The bank alleges its former employees and the six dealerships engaged in a conspiracy to present fraudulent documents and/or make fraudulent representations to the bank for over $27 million in loans.

It is also alleged the former employees breached the terms of their contracts and conducted themselves in a manner that was likely to destroy or seriously damage the relationship of trust between themselves and the bank.

The bank has also accused the defendants of wrongfully engaging in actions with intent to injure the bank and cause losses by unlawful means in the conspiracy to defraud and conceal their actions.

In filing the claim, the bank also applied for an injunction to freeze the assets of the former employees.

Seepersad said the court’s jurisdiction was founded in the civil proceeding rules and such orders can be granted when it appears likely that the claimant will recover judgment or if there are reasons to believe that the defendant had assets to meet the judgment in whole or in part but may take steps to ensure these assets are no longer available or traceable.

“The test is therefore whether the claimant has shown at least a ‘good arguable case.’

“At this stage, the court holds the view that the refusal of a Mareva injunction against the former bank employees would involve a real risk that a judgment or award in favour of the plaintiffs would remain unsatisfied.”

He said the court held the view that the position presented by the bank outlined a good arguable case that the former bank employees were likely involved in an intricate fraudulent scheme.

“The court also holds the view that the allegations of fraud and dishonesty are significant and that there is a likelihood that someone who engaged in such conduct would have the propensity to attempt to dissipate assets so as to frustrate any judgement awarded.”

Although he agreed to grant the injunction to freeze the former employees’ assets, the judge said he needed more information before he considered a similar order against the used car dealers.

Directions were given for the filing of affidavits and submissions and the case was adjourned to December 11, at which time the judge will give a decision on whether the freezing orders will be issued against the defendants until trial.

The claim alleges by reason of conspiracy to defraud, each employee is liable to account for the misappropriated sums and liable for damages.

The bank is represented by attorneys Bryan McCutcheon, Candace Layers and Marcelle Ferdinand.