Man Charged After Commercial Bank Loses J$96 Million to POS Scheme

KINGSTON, Jamaica — A 25-year-old businessman has been charged in connection with a sophisticated fraud scheme that defrauded a local commercial bank of more than US$600,000 (approximately J$96 million).

The accused, Jerhoden Hinds, operator of Original 24K Klothing Company Limited, was arrested during a joint early morning operation on Monday, May 12, at his residence in Old Harbour, St Catherine.

According to the Ministry of Finance, the operation involved 16 members of the Jamaica Constabulary Force’s Constabulary Financial Unit (CFU) and the Special Operations Unit of the Counter Terrorism and Organised Crime Investigation Branch (CTOC).

Investigators allege that between November 13 and December 28, 2022, Hinds and his co-conspirators manipulated a point of sale (POS) terminal issued by the bank to carry out unauthorised offline transactions. By bypassing the bank’s real-time authorisation systems, the group reportedly caused the bank to unknowingly advance large sums to Hinds’ account, which were then quickly withdrawn or transferred.

The fraudulent activity was eventually flagged by intermediary banks, triggering chargebacks and resulting in losses amounting to US$618,856.29 (J$99,017,006.40), the report said.

The POS terminal was originally issued to Hinds for legitimate business purposes. However, investigators say it was deliberately placed in offline mode to exploit the bank’s processing system.

During Monday’s search, police seized five cell phones belonging to Hinds, his spouse, and his brother. Two locked safes and J$1,967,350 in cash were also confiscated.

Hinds was arrested on reasonable suspicion of breaching the Proceeds of Crime Act (POCA) and the Larceny Act. After 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.

He was granted bail in the sum of J$400,000 with one surety and is scheduled to appear in the Kingston and St Andrew Parish Court on June 10, 2025.

Principal Director of Financial Crimes Investigations, Keith Darien, underscored the significance of the case. “This case highlights the increasing complexity of financial crimes and the critical need for constant vigilance and inter-agency collaboration. Fraud not only undermines the financial system but also erodes public trust.”

Investigations remain ongoing.