Usain Bolt, Loses $12 Million in Alleged Fraud

[mickeyd]

Even famous rich folks can get ripped!

Jamaican Olympic sprinter Usain Bolt was shocked to discover $12 million missing from an account he had with Kingston-based investment firm Stocks and Securities Ltd., according to his lawyer.

Bolt was recently told there was only about $12,000 remaining in the account, his lawyer Linton P. Gordon said in a phone interview. The account was part of Bolt’s retirement and lifetime savings.

https://www.fa-mag.com/news/world-s...il&utm_term=0_1899ce8517-c7be716e4f-233707017

 

[Car-Guy]

Wow, that went fast.


Good lesson, for the rest of us... Don't put all your eggs in one basket. (Which he didn't) But still 12m hurts.

 

[COcheesehead]

Take the money and run.

 

[Pointby2]

The Jamaican financial firm (SSL) at the center of an embezzlement scandal that ensnared Olympic sprinter Usain Bolt placed the blame on a single employee, who the company alleges also defrauded 39 other clients and even sought a loan from Bolt’s management team to help cover up her scheme.

 

[ERD50]

I hope that wasn't his last $12M. I also hope he learned something - FDIC SPIC insurance?

I'm assuming he could invest in the US?


-ERD50

 

[RunningBum]

Most estimates from a google search say he is/was worth $90M.

 

[COcheesehead]

I hope that wasn't his last $12M. I also hope he learned something - FDIC SPIC insurance?

I'm assuming he could invest in the US?


-ERD50

Both of those insurances would cover only a fraction of the assets.

 

[jollystomper]

I hope that wasn't his last $12M. I also hope he learned something - FDIC SPIC insurance?

I'm assuming he could invest in the US?

-ERD50

He could, but given that he is a Jamaican citizen who lives (at least mostly) in Jamaica, and does work and charity efforts to help Jamaica, he may have desired to keep a large amount (not necessarily all) of his investments there. This was money he set aside for retirement.

He is just 36, so he has some runway to recover from this.

I read the company's explanation of what happened. I found it hilariously and sadly ridiculous.

 

[zinger1457]

One would think the financial company would be liable for the losses since it was one of its employees, hopefully that have the assets to cover it.

 

[MarieIG]

Hopefully the funds can be recovered and all the victims made whole.

 

[ncbill]

Both of those insurances would cover only a fraction of the assets.

Given it was fraud by their own employee the big brokerages in the USA would have made him whole.

 

[Sunset]

Given it was fraud by their own employee the big brokerages in the USA would have made him whole.

Since the employee did it to ~39 other customers, I wonder if the Jamaican fire has enough insurance and assets to cover the loss ?

While the US brokerages are huge, should an employee do a comparatively larger thing, would customers just lose a lot/most in the end.

It makes me want to keep the money divided between 2 brokerages at a minimum.

After all the Barings Bank was broken by 1 employee. Investors lost out.

https://www.theguardian.com/business/from-the-archive-blog/2015/feb/24/nick-leeson-barings-bank-1995-20-archive

 

[brett]

Somehow I doubt very much if he will be eating wieners and Kraft dinner for the next few months.

Perhaps someone will start a go fund me page for him.

 

[Walt34]

Even with a NW of $90mil that has to hurt. Hopefully he'll be made whole but who knows how such things are handled in Jamaica.

 

[Koolau]

What does one thief do to spend $12 million (plus the other 38 people's money)? I would think most of the money would be recoverable. With a little persuasion (like life in prison vs a few years), I'm sure she would reveal where the money got to though YMMV.

 

[FI_RElater]

hmmm, for the perpetrator, Jamaica to the Caymans isn't that far... although you do need a boat

 

[Letj]

What does one thief do to spend $12 million (plus the other 38 people's money)? I would think most of the money would be recoverable. With a little persuasion (like life in prison vs a few years), I'm sure she would reveal where the money got to though YMMV.

Financial crimes in places like that are rarely prosecuted if ever. There’s a lot of corruption and often the offending parties are well connected. They often just move away from the islands. The only reason why we know about this because it’s Usain Bolt. It happens everyday in places like that and the crimes go unreported.

 

[jollystomper]

What does one thief do to spend $12 million (plus the other 38 people's money)? I would think most of the money would be recoverable. With a little persuasion (like life in prison vs a few years), I'm sure she would reveal where the money got to though YMMV.

Unless if revealing where the money went to would result in her death or the death of her relatives. In that situation many are willing to deal with prison.

 

[Koolau]

Financial crimes in places like that are rarely prosecuted if ever. There’s a lot of corruption and often the offending parties are well connected. They often just move away from the islands. The only reason why we know about this because it’s Usain Bolt. It happens everyday in places like that and the crimes go unreported.

If that is correct (and I have no reason to doubt it) why would anyone place $12 million at risk there? Of course, maybe the local gummint doesn't want money going off shore.

 

[jollystomper]

If that is correct (and I have no reason to doubt it) why would anyone place $12 million at risk there? Of course, maybe the local gummint doesn't want money going off shore.

There still people who have done well who hope to make a difference in their homeland. From what I have read, Bolt is one of those people. He may have looked at it as another way to support business in his country, and by doing so they would be better able to help others. Sadly this time it did not work out.

Of course, the news rarely reports and makes big headlines when things do work out, so I would not agree that it "happens every day" there. I have several examples within our family, which includes Caribbean/Latin America heritage, of honest financial dealings. DW was tracked down by a lawyer overseas on an inheritance situation she was not aware of and was sent the money.

 

[Letj]

If that is correct (and I have no reason to doubt it) why would anyone place $12 million at risk there? Of course, maybe the local gummint doesn't want money going off shore.

That’s a mystery to me. It really isn’t safe to hold investments of that kind in developing countries.