A U. S. regulator's much-criticized securities fraud complaint against Cayman Islands-based Caledonian Bank and Caledonian Securities is near a conclusion after a federal judge in New York yesterday approved a "seemingly illusory" settlement between the parties and rejected an attempt to block it by the group's "putative owner".
Opinion and Order in U. S. Securities and Exchange Commission v. Caledonian Bank Ltd. and Caledonian Securities Ltd. at the U. S. District Court for the Southern District of New York.
The U. S. SEC and the liquidators of Cayman Islands-domiciled Caledonian Bank have objected to an attempt by Sentinel Trust Services to block their proposed settlement of a securities fraud complaint and have questioned Sentinel's claim to be the bank's "owner".
Cayman Islands-domiciled Sentinel Trust Services - claiming to be the owner of Caledonian Bank - is seeking to block the bank's proposed securities fraud settlement agreement with the SEC and force the regulator to pay damages for causing the bank's collapse.
Research by OffshoreAlert indicates that insolvent Caledonian Bank is controlled by Canadian hedge fund boss and United States citizenship-renouncer Terry Duffy, not Curacao-based hedge fund services provider Gordon Casey, as claimed by the Cayman Islands Monetary Authority in its petition to wind up the bank.
Winding Up Petition in Cayman Islands Monetary Authority v. Caledonian Securities Limited at the Grand Court of the Cayman Islands.
Winding Up Petition in Cayman Islands Monetary Authority v. Caledonian Bank Limited at the Grand Court of the Cayman Islands.