A 25-year-old businessman has been charged in connection with a sophisticated fraud scheme that defrauded a local commercial bank of over US$600,000 (J$96 million).
In the early hours of Monday, May 12, 2025, a joint operation involving 16 members from the Jamaica Constabulary Force’s (JCF) Constabulary Financial Unit (CFU) and the Special Operations Unit of the Counter Terrorism and Organised Crime Investigation Branch (CTOC) executed a search warrant at the Old Harbour, St. Catherine residence of Jerhoden Hinds, operator of Original 24K Klothing Company Limited.
Investigators allege that between November 13 and December 28, 2022, Hinds and his co-conspirators manipulated a Point of Sale (POS) terminal issued by the bank to conduct unauthorized offline transactions. By bypassing the bank’s real-time authorization system, the scheme caused the bank to unknowingly advance funds to Hinds’ bank account which was quickly depleted via withdrawals and transfers. The transactions were subsequently flagged as fraudulent by intermediary banks, resulting in chargebacks and losses to the local bank of approximately US$618,856.29 (J$99,017,006.40).
The POS device in question was issued by the bank for legitimate business purposes—specifically, for processing customer debit and credit card payments while online. However, the accused and his accomplices intentionally placed the machine in offline mode to exploit the system and commit fraud.
During the operation, investigators seized five cell phones belonging to the suspect, his spouse, and his brother. Two locked safes and cash totalling J$1,967,350 were also confiscated.
Hinds was arrested on reasonable suspicion of breaches of the Proceeds of Crime Act (POCA) and the Larceny Act. Following an interview conducted in the presence of his attorney, he was formally charged with the following offences:
- Simple Larceny
- Conspiracy to Defraud
- Possession of Criminal Property
- Engaging in a Transaction Involving Criminal Property
He was granted bail in the amount of JMD $400,000 with one surety and is scheduled to appear before the Kingston and St. Andrew Parish Court on June 10, 2025.
Principal Director of Financial Crimes Investigations, Mr. Keith Darien, emphasized the significance of this operation: “This case highlights the increasing complexity of financial crimes and the critical need for constant vigilance and inter-agency collaboration. Fraud not only undermines the financial system but also erodes public trust. The Financial Investigations Division and our partners in law enforcement remain committed to uncovering and dismantling these schemes.”
Investigations remain ongoing.