By Tashieka Mair, Star Writer

WESTERN BUREAU:

Claude Downes, one of four persons implicated in a multi- million fraud at the Iberostar Hotel in St. James have begun to repaying the monies.

When the case was mentioned in the Montego Bay Resident Magistrate's Court on Monday, Downes, a 28-year-old resident of Coral Gardens in St. James, repaid $490,000.

He is charged jointy with his 25-year-old niece Janice Caruthers, a former payables clerk of the hotel; Cory Merchant, 24, of Greenwood, and 23-year-old teacher Lanzel Stewart.

Downes is charged with two counts of possession of forged documents in relation to cheques valued at $1,111,802 that he received from Caruthers.

He has pleaded guilty to the charges. His sentencing was adjourned until November 29 when he is expected to pay over the outstanding balance.

Forged documents

Caruthers is charged with larceny as a servant, conspiracy to defraud and falsifying accounts and two counts of uttering forged documents. The other two accused, who are each answering possession of and uttering forged documents and obtaining money by use of forged documents charges, are expected to face trial on that date.

Caruthers, who has been offered bail in the sum of $3 million, remains in custody. An application to reduce the bail bond to $1 million was opposed by the prosecution.

RM Wilson Smith, who also turned down the application, advised the attorneys on both sides to discuss the application further so an agreement can be reached on the issue.

Fictitious invoices

Allegations are that between May and July 2007, Caruthers and another employee stole cheque leaves and forged signee signatures on them. They allegedly made out cheques to fictitious suppliers and created fictitious invoices.

It is said that false information was endorsed on the system to reflect that the suppliers had been paid $31,137,797.77. These postings on the system were done under various departments to conceal their alleged criminal activities.

Members of the Area One Fraud Squad interviewed her on July 26 when she made certain admissions. The police recovered almost $1.2m in cash and a 2004 Honda Civic motor car valued at $1.3m, which she bought for her boyfriend.

Downes was one of the persons to whom two of the cheques were made out between May and June. He encashed the cheques totalling $1,110,802.

Ironically, he was arrested on Friday, August 3, 2007, when he attended court to support Caruthers.

The other two accused men are alleged to have changed cheques at the Bank of Nova Scotia. Stewart's cheque was valued at $478,000 while Merchant's cheque was valued at $546,000.