‘WE HAVE BEEN  VINDICATED’
‘WE HAVE BEEN  VINDICATED’ . ‘We have been vindicated’
The Jamaica Observer
Paul Simpson, chairman of the Cornerstone Group and deputy chairman of Barita Investments

DEPUTY chairman of Barita Investments Limited, Paul Simpson says he’s feeling “vindicated” following a decision last week from the committee of management representing retired businesswoman Rita Humphries-Lewin that it will discontinue legal action against Barita Investments, Cornerstone Group and two of its main principals, Simpson himself and Jason Chambers.

The indication was documented in the appendix to the agreement seen by Jamaica Observer that was reached in the wee hours of Tuesday last week between the committee of management appointed by the court last year July to oversee Humphries-Lewin’s affairs, led by her husband Karl. The full documentation was, however, not shared.

But from the appendix, under the signature of the attorneys and parties involved, the Karl Lewin-led committee said it decided to discontinue the legal case, and apologised to the parties for its actions after it “received and considered further information and documentation concerning certain transactions involving the sale of Mrs Humphries-Lewin’s shares in Barita Investments Limited and related purchase of shares in Cornerstone United Holdings Jamaica and Cornerstone Financial Holdings”.

The committee has also apologised for its decision to file a counter-suit after Simpson and Barita had filed action in court seeking to have aspects of a deal which had been arrived at in 2021 regarding Barita enforced.

It has also formally signalled that it withdraws all allegations of wrongdoing against Barita, Cornerstone, Simpson, and Chambers.

“What this shows is that we have been vindicated. Our character is without question, our judgment is correct. And all the things that makes one a fit and proper person was called into question but now, they are absolving us and has actually said they have created harm and are sorry,” Simpson said in response to queries from the Business Observer about the withdrawal of the case.

He added that he was relieved about the development in light of the fact that the allegations had caused “great discomfort and harm to himself, Chambers and the business”.

“Our correspondent banks were asking questions,” he added, and pointed out that the company missed out on many business opportunities because of the allegations. The

Business Observer understands that Bank of Jamaica, at the time, had even stepped in to tell Cornerstone that, based on the allegations, it might have to sell its merchant bank. But that suggestion was rejected out of hand by the company’s attorneys who questioned the central bank’s action, especially with it not doing an investigation for itself before reaching the conclusion.

The “information and documentation” that led Lewin to discontinue the case was not shared. Efforts to reach Lewin for further comments proved futile, with calls to his cellphone going unanswered.

However, in the appendix to the agreement Lewin said that, “having consulted with and taken advice from attorneys-at-law, and in the interest of justice, the committee withdraws all allegations and imputations of misconduct and wrongdoing against the Cornerstone companies and their officers Mr Paul Simpson and Mr Jason Chambers”.

It said it accepts that its complaints would have called into question the professional character, integrity, and judgement of the Cornerstone executives, and may have included inflammatory statements that would have raised concern on the part of the relevant regulators.

“We have agreed to discontinue the counter-claim filed in claim number SU 2023/CD00256 against Barita Investments Limited, the Cornerstone companies and their subsidiaries, and especially their officers Paul Simpson and Jason Chambers. We sincerely regret any harm that may have been caused to the Cornerstone Companies, Barita, their subsidiaries and their officers — especially Mr Simpson and Mr Chambers, the chairman of the companies, and their families,” the committee wrote.

The development comes just over a year after Lewin, in a September 2023 affidavit, asked the Supreme Court to set aside a series of transactions in which his wife Humphries-Lewin sold 28.2 million Barita Investment shares and used the proceeds to purchase 1.4 million Cornerstone shares worth $2 billion (about US$15 million at the time). The transactions took place between April to September 2021. Cornerstone is the parent company of Barita — a licensed securities dealer, investment manager, pension administrator and cambio operator that also has primary dealer status from Bank of Jamaica (BOJ).

The transactions first came up for dispute when Humphries-Lewin’s niece, Deborah Mordecai Edwards, in 2022 alleged that the Cornerstone principals used “fraud and deceit” in the negotiations with her aunt for the sale of her Barita shares and purchase of the Cornerstone shares, saying her aunt was not mentally capable of conducting the transactions and did not get legal advice before signing the documents. Cornerstone took the matter to court to seek a declaratory judgement, and before had even offered, “out of deep respect for Mrs Humphries-Lewin to, in good faith, unwind the transaction if there was buyer’s remorse”, following Mordecai Edward’s concerns. Mordecai Edwards’ response was to reject the return of Barita shares and to attempt enforcement of a cash payment of US$20 million, amounting to 30 per cent more than the US$15 million transaction value, according to a September 2023 release from Barita on the matter.

Humphries-Lewin is the founder and former majority owner of Barita, which Simpson’s Cornerstone Group acquired in 2018. The entity owns 74.3 per cent of Barita Investments. The company has over $128 billion in assets and recorded $3.5 billion in profits in its last financial year.
Jamaica
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https://www.jamaicaobserver.com/2024/11/06/we-have-been-vindicated/
2024-11-06
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‘We have been vindicated’
‘WE HAVE BEEN  VINDICATED’