Barita Investments Limited vice chairman Paul Simpson says he feels “vindicated” following last week’s decision by the board representing retired businesswoman Rita Humphries-Lewin to drop legal action against Barita Investments, Cornerstone Group and two of its main executives. , Simpson himself and Jason Chambers.

The indication was documented in the annex to the agreement seen by Jamaica Observer that was reached in the early hours of Tuesday last week between the steering committee appointed by the court last July to oversee Humphries-Lewin’s affairs, led by her husband Karl. However, the full documentation has not been shared.

But in the appendix, signed by lawyers and the parties involved, the committee headed by Karl Lewin said it decided to discontinue the legal process and apologized to the parties for its actions after “receiving and considering information and documents supplementary regarding certain transactions involving the sale of Ms Humphries-Lewin’s shares in Barita Investments Limited and the related purchase of shares in Cornerstone United Holdings Jamaica and Cornerstone Financial Holdings”.

The committee also apologized for its decision to file a countersuit after Simpson and Barita filed a lawsuit to enforce aspects of a settlement reached in 2021 regarding Barita.

He also officially signaled that he was withdrawing all allegations of wrongdoing against Barita, Cornerstone, Simpson and Chambers.

“What this shows is that we have been vindicated. Our character is unquestioned, our judgment is right. And all the things that make her a fit and proper person have been called into question, but now, they’re absolving us and actually saying they created harm and we’re sorry,” Simpson said in response to questions from the side Business Observer about the withdrawal of the case.

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

“Our correspondent banks were asking questions,” he added, pointing out that the company had 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 commercial bank. But that suggestion was rejected by the company’s lawyers, who questioned the central bank’s action, particularly because it did not do its own investigation before reaching its conclusion.

The “information and documentation” that led Lewin to drop the case was not shared. Efforts to reach Lewin for further comment were unsuccessful, with calls to his cellphone going unanswered.

However, in the addendum to the agreement, Lewin said that, “after consulting and receiving advice from counsel and in the interest of justice, the committee withdraws all allegations and imputations of wrongdoing and wrongdoing against Cornerstone and its companies. officers Mr Paul Simpson and Mr Jason Chambers’.

She said she accepted her complaints would have called into question the professionalism, integrity and judgment of Cornerstone executives and could have included inflammatory statements that would have raised concerns from relevant regulators.

“We have agreed to terminate the counterclaim filed in claim number SU 2023/CD00256 against Barita Investments Limited, the Cornerstone Companies and their subsidiaries, and in particular 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 companies’ presidents 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 buy 1.4 million shares of Cornerstone. worth $2 billion (about $15 million at the time). The transactions took place between April and September 2021. Cornerstone is the parent company of Barita – a licensed securities dealer, investment manager, pension administrator and exchange operator, which also holds primary dealer status from the Bank of Jamaica ( BOJ).

The transactions first came into contention when Humphries-Lewin’s niece, Deborah Mordecai Edwards, in 2022 alleged that Cornerstone executives used “fraud and deception” in negotiations with her aunt to sell her Barita shares and buy Cornerstone shares. saying her aunt was not mentally capable of carrying out the transactions and did not receive legal advice before signing the documents. Cornerstone took the matter to court seeking a declaratory judgment and previously even offered, “out of deep respect for Ms. Humphries-Lewin, to reverse the transaction in good faith if there is any buyer’s remorse,” as a result of his concerns Mordecai Edward. Mordecai Edwards’ response was to reject the return of the Barita shares and seek a cash payment of US$20 million, 30% more than the US$15 million deal, according to a September 2023 statement of Barita on this topic. .

Humphries-Lewin is the founder and former majority owner of Barita, which Simpson’s Cornerstone Group acquired in 2018. The entity owns 74.3% of Barita Investments. The company has more than $128 billion in assets and posted $3.5 billion in profits in its last financial year.