Judge orders 5 roll-on/roll off dealers to repay $24m to Ansa Merchant Bank

FIVE roll-on/roll-off used-car dealers have been ordered to repay Ansa Merchant Bank (AMB) a total of $24 million for loans received for the sale of several vehicles.

The dealers are Ceylon Marketing Ltd, Joalex Auto Ltd, Miva Import Export Consultancy Ltd, Diamond Conception Company Ltd and It’s A Deal Ltd.

In a ruling on November 4, Justice Frank Seepersad ordered summary judgment to AMB and also struck out the defences of the used-car dealers.

Each company was ordered to repay AMB the sums it received in the alleged loans.

The bank had asked the judge for summary judgment and to strike out the defences of the five used-car dealers in its multi-million-dollar claim against the companies, six former employees of the bank, and an individual.

AMB initiated the lawsuit on October 2, 2023. It alleged it had uncovered a complex web of fraudulent loan transactions involving property and no fewer than 35 vehicles.

It alleged the former employees and used-car dealerships conspired to defraud the bank, leading it to sustain almost $30 million in losses over two and a half years. The allegations against the 13 included breach of contract, misrepresentation, dishonest assistance, breach of fiduciary duty and unjust enrichment.

The others named in the case are Randy Gottsleben, Dwayne Rojas, Zaria Sankar, Navindra Rambarran, Reyvaan Rampersad, Kerry Ramsaroop, Arnold Ramjass (trading as Arnold Ramjass Auto Mechanical and Painting Garage) and Adriana Ramsingh.

The bank's application for summary judgment and an order to strike out the six defences was made on May 24, 2024. It argued that the defences filed had no reasonable prospect of success and there was no cogent reason for taxing the court’s limited resources to engage in a trial.

In his ruling, Seepersad said, “The claimant outlined a cogent and comprehensive case against each defendant and advanced serious allegations of commercial fraud and misrepresentation.

“These allegations required robust and compelling responses so as to convince the court that each defendant had a reasonable prospect that the claimant’s claims could be successfully defended.

“These defendants have not done so.”

He said the allegations stood undisputed.

If any of the companies have already made payments towards the loans, this sum will be deducted from the sums in the judge’s order.

In analysing and reviewing AMB’s claim and supporting documentary evidence, Seepersad held that the five entered “bare denials” in their respective defences.

He also pointed out that each company accepted it never sold the vehicles identified in AMB’s claim, although each received various sums from the bank.

Ceylon received $5.8 million and denied the loan was to buy the vehicles. The judge noted the company did not respond to the allegations of breach of trust, dishonest assistance, knowing receipt, mistake of fact (restitution), lack of consent (restitution) and unjust enrichment.

Joalex admitted receiving $12.2 million; Miva $4.3 million; Diamond $360,782.18 and It’s a Deal $950,000.

Seepersad said the companies failed to address AMB’s documentary evidence and simply denied the purpose of the loan was to buy the alleged vehicles, but did not put forward a different version of the alleged events.

On October 5, 2023, the judge granted AMB freezing orders against all 13 and continued them on February 20, 2024, until after the matter went to trial.

The dealerships filed their defences in December 2023.

The bank was represented by Ian Benjamin, SC, Marcelle Ferdinand, Brian McClutcheon and Candace Layers. Attorney Roland Bain represented the companies.