A landmark legal proceeding spanning over a decade has commenced in Trinidad and Tobago’s High Court, targeting the estate of late financial magnate Lawrence Duprey and five co-defendants over the catastrophic collapse of CL Financial Group. The civil lawsuit, initiated by the Central Bank and Colonial Life Insurance Company (Clico), alleges systematic financial misconduct that precipitated one of the Caribbean’s most devastating corporate failures.
Justice Robin Mohammed is presiding over the complex case at Port of Spain’s Waterfront Judicial Centre, where plaintiffs seek billions in damages from Duprey’s estate, former corporate secretary Gita Sakal, and ex-executive Andre Monteil, along with affiliated entities Dalco Capital Management and Stone Street Capital Ltd. The defendants face allegations of orchestrating a scheme where policyholder funds were systematically diverted to finance personal luxuries and private business ventures rather than being safeguarded for investors.
According to court documents, Clico operated with “grossly deficient” governance structures, enabling the conglomerate’s leadership to misuse insurance deposits and mutual fund investments. The 2009 collapse revealed staggering liabilities exceeding $12 billion, forcing government intervention through emergency powers under the Central Bank Act. Subsequent bailouts consumed approximately $5 billion in taxpayer funds initially, with outstanding obligations reportedly reaching $13 billion as recently as the 2025 budget address by Finance Minister Colm Imbert.
Testimony from former Central Bank governor Ewart Williams highlighted early warning signs, including a 2005 regulatory investigation that identified compliance issues within Clico’s operations. Forensic accounting analysis by Ernst & Young concluded that Clico Investment Bank would likely have been declared insolvent as early as 2007. Williams’ cross-examination revealed contentious discrepancies in statutory fund calculations, with the Central Bank reporting a $600 million deficit while Clico’s records showed a $500 million surplus for the same period.
The trial continues with expectations of prolonged proceedings as plaintiffs attempt to untangle the complex financial architecture that once controlled over $100 billion in assets across 72 international companies spanning banking, energy, and real estate sectors.