A Montserrat Tobacco Manufacturing Company
Pursuant to an application by the Montserrat Financial Services Commission, KRyS Global was appointed Inspector and Receiver-Manager by the Montserrat Court to investigate into the business and ownership structure of a Montserrat Tobacco Manufacturing Company and two affiliated entities. The scope of the investigation was multi-faceted and included (i) investigating whether funds had been fraudulently transferred and/or diverted from the corporate accounts and/or whether there were any unlawful transfers of money or other assets from the Montserrat Tobacco Company to any of the affiliated companies and (ii) assessing whether the businesses of the Montserrat Tobacco Company and affiliated entities were being carried out by any person with an intent to defraud.
Onsite visits determined that the books and record were scant and could not be relied upon. Relationships between purported shareholders and management of the Montserrat Tobacco Company had deteriorated. Management were uncooperative and tardy in providing information, and in two instances, it was necessary for the Inspector to get further direction of the Montserrat Court on the production of information. Some of the documentation provided by management and other parties who had an interest in the findings of the Inspector was inconsistent with the facts at the time or insufficiently worded to assist with the investigation. There was one instance where two different versions of the same document were provided to the Inspector, requiring the Inspector to draw conclusions as to which was the likely valid version of the document.
KRyS Global reconstructed the books and records of the Montserrat Tobacco Company and affiliated entities from source documents. Using this information KRyS Global provided a comprehensive report within the deadlines provided that gave a detailed assessment of the Montserrat Tobacco Company’s and affiliated entities’ financial position, and concluded inter alia that the the Tobacco business and the affiliated entities were carried out with an intent to defraud and that the Montserrat Tobacco Company and affiliated entities were likely to be insolvent. The Inspector provided a constructive opinion to address the beneficial ownership and ownership structure of the Montserrat Tobacco Manufacturing Company and the affiliated entities.
By managing the risks involved in dealing with these parties and their competing interests, KRyS Global was able to provide the Montserrat Court and the Montserrat Financial Service Commission with a balanced and transparent report that could be relied upon to address the concerns of the Court and FSC and to make an assessment of the ongoing operations of the companies.