Re Global Inv Brokers

• Jurisdiction: Cayman Islands
• Judge: (Harre, J.)
• Judgment Date: 19 July 1989
• Court: Grand Court (Cayman Islands)
• Date: 19 July 1989

Grand Court

(Harre, J.)

IN THE MATTER OF GLOBAL INVESTMENT BROKERS LIMITED

A.S. Smellie, Ag. Attorney General for the Crown.

Cases cited:

(1) Chief Const. (Hants.) v. A. Ltd., [1985] Q.B. 132; [1984] 2 All E.R. 385; (1984), 79 Cr. App. R. 30, distinguished.

(2) Chief Const. (Kent) v. V., [1983] Q.B. 34; [1982] 3 All E.R. 36; (1982), 126 Sol. Jo. 536, dicta of Slade, L.J. applied.

Legislation construed:

Criminal Procedure Code (Law 13 of 1975), s.55 (as substituted by the Criminal Procedure Code (Amendment) Law, 1987, s.2):

‘Where a person has been convicted of an offence…the court may direct the restitution to the owner thereof or his representative of the property to which that offence relates….’

s.182(1): ‘Any court may order the seizure of any property which there is reason to believe has been obtained by or is the proceeds…of any offence….’

Penal Code (Law 12 of 1975), s.28:

‘Any person who is convicted of an offence may be adjudged to make compensation to any person injured by his offence….’

Injunctions-Mareva injunction-locus standi of applicant-Attorney General may apply as Crown officer acting in public interest to freeze funds in bank account, allegedly unlawfully obtained by person charged with criminal offence

The Attorney General applied for an injunction to restrain the respondent from disposing of funds held in a Cayman bank account.

The respondent was charged with the offence of carrying on banking business without a licence, contrary to s.3 of the Banks and Trust Companies Regulation Law (Revised). In the present proceedings, the Inspector of Banks gave affidavit evidence to the effect that the respondent had received sums of money from would-be investors in response to a prospectus for a private investor programme which it had published, containing false representations. These sums were deposited in the respondent”s Cayman bank account.

The Attorney General submitted that (a) since ss. 182 and 55 of the Criminal Procedure Code provided for the seizure and restitution of property believed to be the proceeds of a criminal offence and s.28 of the Penal Code allowed for a convicted person to be made to compensate his victim, it was necessary that the funds in the respondent”s account be preserved in the event of the respondent”s conviction; (b) as Attorney General he had locus standi to apply for an injunction since he was a public officer with an interest in protecting the continued good name of the Cayman banking industry; and (c) it was not relevant for this purpose that the Attorney General himself did not possess the statutory powers of seizure and restitution held by a Chief Constable or other law enforcement officer.

Held, granting an injunction:

The Attorney General had shown that he had a legal or equitable right or interest, the enforcement or protection of which required the making of an injunction. Since he represented the Crown as guardian of the public interest in matters affecting the reputation of the Cayman Islands as a centre of finance and was supported by the evidence of the Inspector of Banks, he had a sufficient interest in ensuring that the funds in the respondent”s account were not dissipated. Although he was not personally vested with the responsibility of...