A businessman, who allegedly manipulated a Point of Sale (POS) machine system and defrauded a local commercial bank of $99 m, 3 years ago, has been arrested and charged. 

He is a 25-year-old clothing store operator, Jerhoden Hinds of Old Harbour, St. Catherine.

The Financial Investigations Division (FID) said Hinds was arrested on Monday May 12, during a joint operation carried out at his home.  

Members from the Jamaica Constabulary Force’s Constabulary Financial Unit and the Special Operations Unit of the Counter Terrorism and Organised Crime Investigation Branch executed a search warrant at the premises. 

Allegations are that between November and December in 2022, Hinds and his co-conspirators manipulated a point of sale terminal to conduct unauthorized offline transactions.

By bypassing the bank’s real-time authorization system, the scheme caused the financial institution 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 charge backs and losses to the local bank of over US $618,000.

The POS device in question was issued by the bank for legitimate business purposes, that is, 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.

On Monday, during the operation, investigators seized five cell phones belonging to the suspect, his spouse, and his brother. 

Two locked safes and cash, totalling over $1.9 m 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 simple larceny, conspiracy to defraud, possession of criminal property and engaging in a transaction involving criminal property

Hinds was granted $400,000 bail, with one surety 

He is to appear before the Kingston and St. Andrew Parish court on June 10. 

FID Principal Director Keith Darien said this case highlights the need for constant vigilance and inter-agency collaboration.