Businessman charged for defrauding bank of almost J$100 million

 

A 25-year-old businessman has been charged in connection with a sophisticated fraud scheme that defrauded a local commercial bank of more than US$600,000 US or nearly J$100 million.

 

He was arrested on Monday during a joint operation involving 16 members of the JCF's Constabulary Financial Unit and the Special Operations Unit of the Counter-Terrorism and Organised Crime Investigations Branch. 

 

The cops executed a search warrant at the Old Harbour, St. Catherine residence of Jerhoden Hinds, operator of Original 24k clothing company. 

 

Investigators alleged that between November 13 and December 28, 2022, Mr. Hinds and his co-conspirators manipulated a point of sale terminal issued by the bank and used it to conduct unauthorised offline transactions. 

 

This scheme caused the bank to unknowingly advance funds to Mr. Hinds's bank account, which was quickly depleted via withdrawals and transfers. The transactions were subsequently flagged as fraudulent by intermediary banks, resulting in chargebacks and losses to the local bank of approximately US$618,000. 

 

The POS device in question was issued by the bank for legitimate business purposes, specifically for processing customer debit and credit card payments while online. 

 

But the accused and his accomplices intentionally placed the machine offline mode to exploit the system and commit fraud. During the operation, investigators seized five cell phones belonging to the suspect, his spouse and his brother. 

 

Two locked safes and cash totalling nearly $2 million were also confiscated. 

 

Hinds was arrested on reasonable suspicion of breaches of the Proceeds of Crime Act and the Larceny Act. 

 

Following an interview conducted in the presence of his attorney, he was formally charged with simple larceny, conspiracy to defraud, possession of criminal property, engaging in a transaction involving criminal property. 

 

He was granted station bail in the amount of $400,000 and is scheduled to appear before the Kingston and St. Andrew Parish Court on June 10.