An attempt by the principals of alleged Ponzi scheme, Accelerated Capital Firm Inc (ACFI), to prevent authorities from investigating their activities and instituting charges against them has been thrown out by the High Court.
According to a statement from Attorney General (AG) Anil Nandlall, the matter was heard by the acting Chief Justice last Wednesday, at which point she struck out the Fixed Date Application (FDA) through which Yuri Garcia Dominguez and Ateeka Ishmeal had applied for orders restraining the Guyana Police Force (GPF) from “accepting complaints” from those who invested in the alleged Ponzi scheme.
They has also asked the court to prevent the AG from directing the Special Organised Crime Unit (SOCU), Financial Intelligence Unit (FIU), Guyana Securities Council, Central Bank and the GPF from investigating or continuing to investigate the contracts and terms of the contracts signed with investors.
Orders were also sought prohibiting the GPF or Director of Public Prosecutions (DPP) from instituting criminal charges against Dominguez or Ishmael.
Finally the two fraud accused had asked the court to direct that the Attorney General unfreeze and release the bank accounts held in the name of Dominguez, Ishmael and ACF at the Bank of Baroda, Demerara Bank Limited and Republic Bank Limited.
The basis of each application was that the complaints and actions resulting from them “are being done unlawfully, unreasonably, irrationally, unfairly, arbitrarily, capriciously, without proper legal grounds, are ultra vires, continues an abuse of public law power, constitutional law, null, void, and of no legal effect.”
Justice George is said to have found that the applicants produced no evidence in support of the reliefs sought against the Attorney General, Commissioner of Police and Director of Public Prosecutions.
Specifically in relation to the first order requested the “honourable Madam Chief Justice stated that there was no law that permits an order of Prohibition against the Commissioner of Police from instituting or continuing to institute criminal charges and in any case the Applicants failed to adduce evidence supporting the order sought,” the statement noted.
The statement added that the applicants withdrew their request to restrain the GPF from accepting complaints or interviewing investors, were unable to address the Court on their request to prohibit the DPP from instituting charges and were unable to prove that the AG has directed SOCU, FIU, GSC, Central Bank or GPF to investigate the applicants.
Further the applicants are said to have admitted that the AG does not have the discretion to unfreeze or release funds from bank accounts as such was within the ambit of the Central Bank of Guyana and the orders sought were therefore misconceived.
Costs were awarded to the Attorney General in the sum of $250,000, which is to be paid on or before the 31st December, 2020.
Appearing with the Attorney General were Deputy Solicitor General Deborah Kumar, and State Counsels Tiffini Barton and Abiola Lowe, while Dexter Todd, Paula Nicholson, Shunella Glen and Adrian Smith represented the applicants.
The applicants, who are married, are currently facing a series of charges.
In August, the police had arrested the couple after they had launched an investigation into what is being described as a huge Ponzi scheme.
The Guyana Police Force has said that Dominguez, 34, a naturalised Guyanese of Cuban origin, and his wife, Ishmael, 32, both of Track A, Coldingen, East Coast Demerara, were detained as part of an ongoing investigation of alleged fraud.
To date, the principals are facing close to 80 charges of conspiring with other persons to obtain monies by false pretence. They were released on bail totalling approximately $30 million.
At a press conference held in early October, Dominguez had announced plans to recommence repayment of invested capital to 17,000 clients from October 12th since the firm is not licensed to operate here and has been forced to cease all of its operations.
The repayment did commence as promised with some 27 persons receiving their invested capital.
However, two days after the repayment started, officials from SOCU raided the couple’s property at Coldingen, ECD and seized equipment containing records of their clients. This resulted in a halt of the repayment.
In mid-October, the couple faced two additional charges which were filed by SOCU.
They were charged under the Consumers Affairs Act with operating a pyramid scheme, and under the Securities Act with operating without a licence.
Both Dominguez and Ishmael pleaded not guilty to the joint charges and were released on bail.
In a recent update, Todd had told this newspaper that persons who invested with ACFI are at risk of losing their money as the companies which piloted the trading of the funds have since terminated their contracts with the firm.
