Andre Monteil, former chairman of Clico Investment Bank (CIB), his company Stone Street Capital (SSC) and Richard Trotman, former CEO of the bank, were ordered to pay the bank a total of $ 78 million.
In addition to the million dollars, pay about $ 20 million in interest. In a recent ruling, Judge Evanson Colin Williams also allowed the CIB to track the assets of both individuals and the SSC under the agreement 78 million loan agreement back in 2007.
CIB, which is currently forcibly liquidated and therefore controlled by the Central Bank (CB), has sued Monteil. It is alleged that Home Mortgage Bank (HMB) was given a $ 78 million loan to acquire Stone Street Capital to acquire a 43.8% stake in Clickcoat, which is presided over until April 2008. , Violated the internal control bank and it was an act. About “self-deception”.
The bank demanded the repayment of about $ 110 million as a result of the loan transaction. The amount requested was the outstanding debt balance of 14 78 million plus interest payments issued by Stone Street on February 14, 2007. The deal involved a series of complex financial transactions that took place between 2007 and 2008. The judge said: “This is a case of a transaction network and a crowd of players, individual and corporate.
According to the case file, Monteil sought and obtained a loan through Stone Street in February 2007. Shortly thereafter, the loan was transferred to another Montreal company, First Capital, which had more than 300,000 shares in CIB’s parent company, CL Financial (CLF).
At the time, the stock was valued at nearly $ 444 million. Monteil reached an agreement with Dupre for Dupre to take control of First Capital’s debt and assets in exchange for an option to buy CLF’s 43% stake in HMB. Monteil bought HMB stock for $ 110 million and sold it to the National Insurance Board (NIB) for almost the purchase price.
In the lawsuit, Monteil and Trotman were charged with a series of misconduct and also brought the entire CIB board of directors to justice for improperly resolving the situation and violating fiduciary duties for various reasons. The key was the inability to provide full collateral for the loan.
Both men were found to have defaulted on their fiduciary obligations and the court canceled the 2007 loan agreement. In its ruling, Quinlan-Williams said of Monteil: “He knew that the $ 78 million payment from the CIB on February 14, 2007, to Stone Street was unauthorized, verbal, and there was no or no adequate guarantee. completely undocumented and purchased by Mr. Trotman without any verification.
“She said Monteil knew this was” extremely irregular and not in the best interest of CIB, but as CIB president and director, he allowed this to happen, leaving CIB unprotected and unprotected. “The judge also ruled that Montail did not fully disclose the nature and extent of his interest and that this should be recorded in the minutes of the CIB board;” Acting dishonestly “without revealing the true purpose of the transfer and Replacement of 2007 Agreements; And he “knowingly misled” Trotman and the CIB board that the transfer of the debt obligations was to one of his companies: First Capital Ltd., St. Kitts (a subsidiary of SSC).
While the president and director of the CIB Monteil were still attended and approved, the transfer of a debt obligation to the FCL, which did not exist at that time, was withheld by the court. CIB’s lawsuit against FCL was dismissed.
During the trial, Monteil defended his loan from CIB to finance the purchase of shares for his private investment company and denied that the $ 78 million loans were anything less than transferring the debt and that businessman Lawrence Dupre was worth $ 315 million in CLF shares in HMB for his former boss, the billionaire. Monteil confirmed that Stone Street Capital did not pay $ 78 million, but instead transferred it to Dupleix, which wanted 337,269 shares, which the former CIB president had in CLF.
Monteil said an agreement was reached with DuPre to obtain a loan and purchase shares of CLF, which were first transferred to Capital Limited and then to Delco, another company owned by DuPre. Monteil said he did not inform Trotman of the deal with DuPrey, as the CLF group president said he would do it himself. In his determinations against Trotman, whom he ordered to pay the amount of reinstatement, the judge stated that it was for breach of his duties “to act honestly and in good faith and in the best interests of CIB” and to “exercise the care, diligence and skill that a reasonably prudent director would exercise.”
It also noted that Trotman had violated his fiduciary duties of loyalty, honesty, good faith and acting in the best interest of CIB, and avoiding a conflict of interest. your contractual obligation to act with the highest standards of professional and ethical competence and integrity; and your commitment to ensuring that Monteil fully discloses the nature and extent of your interest in the transactions.
Against Stone Street, after receiving the $ 78 million from CIB, knowing it was unauthorized and obtained in violation of Monteil and Trotman’s fiduciary duties, he said he had the millions or verifiable earnings from constructive trust in CIB. After Quinlan-Williams annulled the 2007 settlements, he also ordered their immediate revocation and that the defendants must disclose to CIB all assets now or previously in their possession that resulted from the disbursement of the $ 78 million Loan. Not only was he allowed to trace these assets and the required accounts, but he also ordered that they be returned to CIB. In his 129-page ruling, the judge said the 2008 agreements – the transfer of the CIB loan to SSC and HMB’s shares as collateral – “were cleverly crafted for the purpose of misleading.
“Trotman and Monteil exhibited extreme dishonesty and breaches of duty in relation to both the loan and its transfer to conceal the true state of affairs,” she said, adding the dishonesty was “well-hidden and was only revealed upon careful scrutiny of all the details relating to the loan and transfer.”
She also pointed out that the CIB has so far not received a $ 78 million loan or any principal of interest and that HMB shares are not a suicide attack.
In addition to the millions in compensation and interest, the judge ordered the two men and the SSC to pay the CIB expenses. He was sentenced to life in prison on April 27. The CIB was represented by Michael Green, QC, Nadine Ratiram and Kelly Ganger. Jason Moto, Christopher Seuchend and Cheonjili Ramotar represented both Monteil and his company. Matthew Gail represented Trotman.