(Trinidad Express) A thorough investigation needs to be launched into the billion-dollar purchase of property in Florida, USA, by British American Insurance Company (Trinidad) Ltd (BAT), Lynette Seebaran-Suite, the attorney representing the CLICO policyholders group, said yesterday.
Seebaran-Suite made the statement during the Commission of Enquiry into the collapse of CL Financial and Hindu Credit Union (HCU) at Winsure Building, Richmond Street, Port of Spain.
The US$295 million purchase of 6,000 acres of land in Osceola County referred to as the Green Island transaction was the largest investment done by BAT.
Seebaran-Suite said the purchase was done with funds taken from Executive Flexible Premium Annuity policyholders.
“There are bells ringing and red flags being thrown up with this transaction,” Seebaran-Suite said.
The main source of funds for the property purchase came from a US$159 million mortgage by the sellers of the property and a US$59 million purchase promissory note by Green Island Holdings LLC.
Seebaran-Suite read the transcript from an interview with Brian Branker, the former chairman of BAT, where he said there was some financial discrepancy with the Green Island Fund Transaction.
British Queen’s Counsel Andrew Mitchell, the attorney for former CL Financial chairman Lawrence Duprey, objected to the reading of Branker’s transcript describing it as “gossip and water cooler chat”.
“People tend to believe things when they hear it more than once,” Mitchell complained to Sir Anthony Colman, the lone Commissioner at the Commission of Enquiry.
Seebaran-Suite also read out the transcript of former group financial director of CL Financial Michael Carballo where he spoke of a conversation with Charles Pratt, the manager of Green Island Holdings LLC.
In that conversation Pratt said he made an exorbitant profit from the sale of the Florida property.
Seebaran-Suite asked Maria Daniel, partner at Ernst and Young, who was in the witness box, if she felt there was “something amiss” with the transaction.
“There is not enough information for me to say if something is amiss,” Daniel said.
Mitchell and Martin Daly, the attorney for former CL Financial executive Andre Monteil, clapped at Daniel’s response.
Cross-examination is expected to be completed with Daniel today.
Afra Raymond, president of the Joint Consultative Council (JCC), is expected to start his testimony today.
