Controllers Appointed To Troubled Cayman Fund

Cayman News Service (CNS Business): The Cayman Islands Monetary Authority has issued a notice that it has appointed Kenneth Krys and Margot MacInnis of KRyS Global to assume control of the affairs of AAA Venture Fund SPC Limited pursuant to Section 30(3)(e) of the Mutual Funds Law (2012 Revision). According to the authority’s website, the controllers have all the powers necessary, to the exclusion of any operator, to administer the affairs of the fund in the best interests of the investors and creditors. While CIMA has given no details over why the regulator was forced to take over the fund, reports on the Miami based watchdog, OffshoreAlert, suggest the Cayman registered fund was a Ponzi scheme.

The section of the law which is cited by CIMA deals with the authority’s power to step in and take over funds when the regulator has reason to suspected that a fund is insolvent, or operating in a manner that is prejudicial to investors or the management is not fit and proper.

CIMA said the directors of the fund, Peter Obrist and Didier van Caloen, no longer have the authority to act on behalf of the fund without the express written permission of the controllers.
According to Offshore Alert, the fund had made claims in promotional material of high returns with little or no performance deviation over many months, indicating the likelihood of a Ponzi scheme.