Croskery

The Supreme Court has lifted the injunction against Hugh Croskery in his capacity as trustee of Phoenix Noteholder's Trust, the stockbroker has announced in a public statement.

Justice Marjorie Cole-Smith had initially placed an injunction on Croskery to May 10, and had given him 14 days to declare the locations of all assets held by him on behalf of Phoenix, whether in his own name or nominees.

Croskery says he has given his undertaking to the court not to dispose of any assets held by the trust without notice or consent.

The assets were frozen in mid-April on the application of Jamaica's Solicitor General Michael Hylton, QC, who had traced ownership of the properties held by Phoenix to Paul Chen-Young, former head of the collapsed Eagle group of companies.

The Miami court has since lifted the freeze on Chen-Young, which means he is free to transact business with them in that jurisdiction.

Croskery said of his role in the trust that he "acted purely in a representative capacity as trustee for a small group of investors who put up the funds to purchase houses."

As trustee, he ensured that their investments were protected, the statement said.

Barred

Courts in Jamaica and Florida had barred Chen-Young and Croskery from disposing of the assets on the application of Eagle Merchant Bank and Crown Eagle Life, two of Chen-Young's former companies commandeered by the Jamaican Government at the advent of the financial sector meltdown .

Croskery has again asserted that the freezing order was not related to his securities brokerage Stocks and Securities Limited — formerly Paul Chen-Young and Associates — of which he is chairman.

Hylton presented evidence to the Kingston and Miami courts showing that Chen-Young, despite a court order on May 4, 2006, to declare his assets and not to deal with or dispose of any properties without approval, had transferred 19 properties to Croskery on May 12, just days after the judgment against him to pay over $900 million plus interest.

Three other properties were transferred to Croskery on May 24 and June 15 of that same year.

The former Eagle boss also held 170 Florida properties in a company of which he was president, director and treasurer.

Contempt of court hearings against Chen-Young are set for July 5 at which time the Solicitor General is expected to argue for his imprisonment.

Iusiness@gleanerjm.com