Covid Pandemic is further delaying the already long process of compensating more than a thousand victims of the collapse of Custom Capital.
Many investors who lost $ 61 million are now waiting for the tenth year to get at least their money back from the state’s compensation plan.
Custom Capital The complex and lengthy liquidation of Capital has been in operation since 2011.
The State Investor Compensation Company (ICCL) is responsible for compensating clients in the event of a breakdown of regulated entities. Its latest annual report shows that the process of paying compensation to more than 2,000 Custom House Capital victims has come to a virtual halt.
Although most custom and Capital Capital clients are liable, ICICL can pay up to $ 20,000 per customer.
To date, the ICCL has awarded $ 7.4 million in compensation for the certification of 574 claims by Custom House Capital, however, no claims were made last year, and 1,400 claims are awaiting liquidation validation before the payments are accepted. From the ICCL.
The complex process of attesting claims and the need to classify the liquidator’s claims and roles ICCL has significantly slowed down this process. It is trying to end the crisis last year The ICCL has filed an application in the High Court to determine the issues involved.
However, it has not yet borne fruit. The ICCL said yesterday “Several primary issues with the application have been addressed, Kovid-19 restrictions have affected progress, and significant issues are awaiting a hearing date.”
Customs and Capital Capital (CHC) was ordered to be cut by the High Court in 2011 and KPMG partner Kieran Wallace was appointed as the official official liquidator.
The move follows a high court inquiry by two central bank inspectors. Systematic and deliberate misappropriation of $ 66 million in clients’ money was found.
Clients were mostly pension investors.
The liquidation process involves the separation of client funds from the company’s assets, which is required. Numerous court hearings and constant interactions with ICCL and the liquidator.
Custom House Capital Clients’ money was used to make large investments in property and to acquire property in such countriesFrance, Germany and Switzerland.
When the financial crisis hit, it began to address the shortcomings using client funds before the structure collapsed.
Accounts filed over the summer for the institution The total cost of handling the liquidation as of April 20 this year was $ 5.74 million, with no significant change since the last update was filed in November.
Of the money recovered, the filing reveals that the professional fee liquidation increased the majority of the proceeds.
The liquidator fee of $ 2.15 million was the largest single expenseThen the legal fee is 85 1.85 m. 23% VAT on professional fees Another, 000 900,000 added.
The latest filing reveals that the size of the compensation jar dropped to $ 374,000 on April 20.