Government Sues CLICO Investment to Recover US$34M

The Attorney General of Guyana, along with CLICO Life and General Insurance Company (South America)
Limited (the claimants), is pursuing legal action to recover approximately US$34 million.

This lawsuit targets CLICO Investment Bank (CIB) Limited (the defendant), a subsidiary of CL Financial
Limited, both of which are undergoing liquidation.

The case has brought renewed attention to the long-standing financial troubles of the CLICO Group, a
conglomerate of companies operating throughout the Commonwealth Caribbean, with its parent
company CL Financial Limited and its principal, Lawrence Duprey, at the centre.

The origins of this legal battle date back to the 2007 financial collapse of the CLICO Group, which led to
significant losses across the Caribbean, with Guyana being particularly affected.

CLICO Life and General Insurance Company was severely impacted, prompting the claimants to seek
enforcement of a 2019 decision against CL Financial Limited.

They are now attempting to extend this decision to CIB, requesting that the court substitute CIB as the
defendant and allow the execution of a money judgment against its assets in Guyana.

A key issue in the lawsuit is the transfer of over US$34 million from CIB to CLICO Bahamas Ltd.

The claimants alleged that this transfer was made with full knowledge that it would cause financial harm
to CLICO Life and General Insurance Company and its policyholders in Guyana.

Furthermore, they accused CIB and its parent company of engaging in fraudulent activities, including
insider loan fraud and operating a pyramid scheme.

They claimed that CIB borrowed large sums of money from other companies within the group, including
CL Financial Limited, with no intention of repaying these debts, and that these actions contributed to the
financial collapse of the entire group.

The financial crisis within the CLICO Group had significant consequences for Guyana, including the
government’s intervention to prevent the National Insurance Scheme (NIS) from failing, according to the
lawsuit.

The claimants said that the government had to pay approximately GY$5.6 billion to stabilise NIS due to
the losses incurred from the CLICO Group’s collapse.

The current lawsuit aims to recoup these funds from CIB. Additionally, the claimants accused CIB of
breaching its fiduciary duties, acting dishonestly, and unlawfully transferring funds.

They argued that CIB, along with its parent company and other subsidiaries, operated as a single,
integrated economic unit, disregarding their separate corporate identities, to the detriment of creditors
and policyholders.

The claimants contended that the corporate structure of the CLICO Group was a façade designed to
obscure the true financial state of the group and evade legal obligations.

The Attorney General and CLICO Life and General Insurance Company are seeking several remedies,
including the right to trace the sum of US$34 million, along with interest, and have it recognised as their
equitable property.

The claimants stated that CIB was a party to various debentures with Bosai Mineral Group Guyana Inc.
and Bosai Mineral Guyana Services Inc., two Guyana-incorporated businesses.

They claimed that the Registrar of Deeds in Guyana is presently holding funds owed to the defendant
under the debentures, to the tune of almost US$20 million, to their credit.

The lawsuit stated that the defendant and other CLICO Group members are barred from obtaining the
money that the Registrar of Deeds is holding.

Justice Navindra Singh of the Demerara High Court rejected CIB’s request last month to begin the
process of obtaining US$20 million that had been deposited in escrow.

The judge also barred the business from pursuing similar cases in the future without permission from
the High Court in Guyana.

The claimants also seek various declarations and orders from the court, including reliefs for equitable
contribution, damages for fraud and conspiracy, and restitution.

Moreover, they requested that the court hold CIB accountable for all assets acquired or derived from
them and indemnify them for the losses suffered.

The lawsuit was filed at the High Court in Georgetown.