CLICO policy holders in Trinidad mount legal action against company directors
PORT OF SPAIN, Trinidad and Tobago, Thursday December 22, 2011 – Not satisfied with the payout plan recently offered by government to some larger CLICO investors and policyholders, one association of policyholders is targeting former CLICO directors to make up the shortfall.
The Santa Rosa Team, which represents a number of CLICO Executive Flexible Premium Annuity (EFPA) policyholders, announced this week that they were going after the “the hundreds of millions of dollars (and possibly much more) in assets of those who are directly responsible for [the policyholders] financial plight.”
In the statement issued on Monday, December 19, the Santa Rosa team argued that the difference between what the EFPA policyholders were due (as per Rajnauth-Lee judgment) and what they were now being offered by the government, was a loss resulting directly from a “catalogue of failures on the part of directors, past and present to discharge their fiduciary responsibilities, and in some cases perhaps to have conspired in the execution of fraudulent acts”.
Under its new plan, government has said policyholders for the first ten years would get a yield of approximately 80 cents for every dollar of their investment if they chose to cash in their investment within six months.
For years 11 to 20, the investors have been promised a return of 100 cents on the dollar, if they opt to swap these zero-coupon bonds for units in the investment holding company that has been called NEL II.
David Walker, the lead consultant for the Santa Rosa Team, said Monday’s statement that the legal action also included those who chose to accept the government’s offer, but he we strongly recommended the EFPA policyholders to reject the government plan as it greatly reduced their chances of getting a full payout.
He urged the EFPA policyholders in the statement to lend their support both for the likelihood of a greater settlement and for the national good.