Paul Chen-Young on the cover of his book 'The Entrepreneurial Journey in Jamaica', which details the fall of his financial group, which he blamed largely on misplaced government policies. - File

Barbara Gayle, Staff Reporter

THE SUPREME Court of Jamaica and the Circuit Court for Miami-Dade County, Florida, have frozen assets of Dr. Paul Chen-Young, former bossof the Eagle group, and stockbroker Hugh Croskery.

Croskery, chairman of Stocks and Securities Limited (S&S), a New Kingston brokerage known previously as Paul Chen-Young and Associates before its renaming last year, was ordered to disclose other assets he holds on Chen-Young's behalf within 14 days.

Croskery's lawyers, Patterson Mair Hamilton, responding to a request for comment, said Thursday that Croskery was surprised by the court order because he was made to understand that the matter was amicably settled.

A lawyer at the firm said Croskery had nothing to hide and would disclose documents and information in "any way responsive" to the court order.

On May 4, 2006, after eight years of litigation, the Jamaican court handed down judgement in favour of Eagle Merchant Bank and Crown Eagle Life - failing entities that were rescued by regulators in the 1990s - against their former CEO, Chen-Young, $900 million plus interest.

Chen-Young had earlier been ordered to declare all his assets, and not to dispose of or deal with any of them without the court's approval.

FINSAC Limited, government's white knight agency used to bail out financial firms during the sector's historic meltdown, recently discovered that Chen-Young had failed to disclose extensive assets in Florida, and that he transferred many of them in the days following the judgement.

The evidence presented to the court showed that through a company known as Florida Phoenix Finance Inc., Chen-Young acquired at least 170 different residential properties in three counties in Florida including the affluent Palm Beach County.

Chen-Young is president, director and treasurer of the company, Solicitor General Michael Hylton, Q.C., noted in his April 13 application to the Supreme Court.

On May 12, 2006, within days of the May 4 judgement, and notwithstanding a Mareva Injunction still in effect, the former Eagle boss also transferred 19 properties to Hugh Croskery, the trustee of a secret trust known as the Phoenix Noteholder's Trust.

On May 10, Chen-Young also transferred a house in Miami to his children; and numerous properties to other trusts and connected persons, as well as third parties, the Solicitor General claimed.

Two properties acquired by Phoenix on May 18 were transferred to Croskery on May 24, and another acquired in May, was transferred to him on June 15, Hylton told the court.

Hylton was in Florida last week assisting United States (U.S.) attorneys to secure the order there. He then returned to Jamaica to make a similar application before Justice Marjorie Cole-Smith.

He was assisted by Julie Thompson, Carlene Larmond and Karen Hill.

Hylton indicated that investigations are continuing and that there was already evidence of assets in at least one other U.S. state and one other country, but declined to identify them by name.

In a related development, Eagle and Crown Eagle have also applied to the Supreme Court for declarations that Dr. Chen Young has acted in contempt of court, and orders that he be committed to prison for contempt.

These applications will be heard on July 5, 2007.

Justice Cole-Smith's ruling:

It is hereby ordered that:-

1. The First Defendant, PAUL CHEN-YOUNG be restrained whether by himself, his servants or agents or howsoever otherwise from causing or allowing Florida Phoenix, a corporation incorporated under the laws of the State of Florida, United States to dispose of and/or deal with its assets, or with assets in its names, wheresover situate, or to withdraw or transfer any funds from its accounts or from accounts in its name wheresover held until May 10, 2007.

2. The Second Defendant, HUGH CROSKERY, be restrained whether by himself, his servants or agents or howsoever otherwise from disposing of and/ or dealing with any assets held on behalf of the Phoenix Noteholders' Trust, ("the Trust") wheresover situate or to withdraw or transfer any funds from accounts held on behalf of the Phoenix Noteholders' Trust until May 10, 2007.

3. The First Defendant, PAUL CHEN-YOUNG do forthwith disclose with full particularity the nature and location of all assets owned by Florida Phoenix Finance Inc. and whether they are held in its own name or by nominees or otherwise on its behalf, such disclosure to be verified by affidavit and served on the Applicant's attorneys-at-law within 14 days of service of this order.

4. The Second Defendant, HUGH CROSKERY do forthwith disclose with full particularity the nature and location of all assets held by him on behalf of the Phoenix Noteholders Trust and whether they are held in the name of the Trust or otherwise on its behalf, such disclosure to be verified by affidavit and served on the Applicant's attorneys-at-law within 14 days of service of this order

5 This order is in effect until May 10, 2007

6. This Application will be further considered on May 10, 2007.

7 There be liberty to the Defendants and any third party affected by this Order to apply on one day's notice to the Claimants' Attorney at Law to set aside or vary this Order.

8. Costs to the Applicants to be costs in the claim.

PROVIDED THAT this Order is declared to be of no effect against, and is not intended to bind any Third Party outside of the jurisdiction of this Court, directly or indirectly affected by the terms of this order, unless and until this Order shall be declared enforceable or recognised or is endorsed by any Court of the jurisdiction in which Florida Phoenix' and the Trust' assets are situated.

If the defendants fail to comply with the terms of the order they will be in contempt of court and may be liable to be imprisoned, fined and or have their assets confiscated.

barbara.gayle@gleanerjm.com