Former LOM broker says she left account in the black
The woman being sued by Lines Overseas Management Ltd for over $100,000 in unpaid loans, has claimed in court that there was money in one of her accounts at the time she left the company and this account was not in the red - as the firm claims.
Former LOM stockbroker Carol Green, admitted in Supreme Court yesterday that she had not sat down and worked out how much she thought she might owe the company with her legal team before going to trial.
Ms Green, who was a stock broker for 20 years and worked for LOM between 1995 and 1997, is being sued by LOM for $110,643.26 plus interest for debts she allegedly ran up on two "margin accounts."
A margin account is a type of account where the client buys stocks partly with his or her own cash and partly with money borrowed from the brokerage firm and the stocks bought are used as collateral.
LOM claim she ran up debts of up to $419,000 in cash overdraft in both accounts and when they requested she inject cash into them they claim she only paid $35,000.
When asked by LOM's lawyer Juliana Jack what the highest amounts she had ever owed in the account numbered 2652, one of two accounts held at LOM and opened by Ms Green, she said: "All I know is when I left LOM it was a positive amount."
Ms Jack asked Ms Green if she had not sat down with her attorneys and worked out what was owing in the accounts. Ms Green said: "No".
LOM claims the two accounts, Carol Green and CMG Ltd., which are part of the accounts involved in the dispute are both personal and interchangeable, which is why they closed one account, Carol Green, after she left.
They sold stock in both accounts to cancel out the debts and moved all activity to CMG Ltd., leaving over $100,000 in debt.
Ms Green claims the Carol Green account was her personal account, and that GMG Ltd. was a limited liability company that she had set up in Bahamas of which she has a 10 percent interest and money was moved from this account without her permission.
LOM is suing Ms Green for unpaid money, and both Scott Lines, managing director and his brother Brian Lines, president of LOM, have taken the stand to testify to the amount of money run up in the accounts and they both allege they repeatedly asked for her to pay money into the accounts.
Ms Green's lawyer, however, has issued a counter-claim in the Supreme Court which Ms Green is suing for damages for breech of contract, wrongful withdrawal of money from her account and constructive dismissal. She also claims Brian Lines assaulted her.
She also claimed in court yesterday - and last week - that her accounts were mismanaged and charges levied that were wrong on the accounts and money taken from the account without authorisation.
One figure of $5170 was said in court to have been taken out of CMG Ltd. account for an overcharge to a customer. The money she received in the overpayment was originally paid into a Bank of Bermuda account.
Ms Green said yesterday she did not dispute the overcharge in 1997 but said the money should never have been taken out of any account, and a letter should have been sent to her asking her to refund LOM.
Ms Jack said: "How are they supposed to get payment from you when you owed them $100,000?"
Another charge to the CMG Ltd. account was for $201 for drinks she and friends allegedly consumed when she gate crashed a LOM function at Coral Beach.
Yesterday, Ms Green said: "Gate crashing the tennis was a complete lie. There was no explanation on that statement, I think it was for $201, and no statement was sent to me."
And she claimed yesterday for the first time that when company president Brian Lines and her were in a shouting match in the office that not only did he bar her exit from the office repeatedly, but he put out a hand to stop her.
When asked why she had not said this before in evidence, she said she had just remembered it over the weekend.
She said: "He was screaming at me and telling me he would do what he liked with my warrants."Mr. Lines said the argument was about her overdrawn cash position, but Ms Green contends that was never mentioned and he had ordered her to sell warrants, which she did not want to do.
Ms Green said that Mr. Lines barred her way and would not let her leave the office. But Ms Green admitted that Mr. Lines had tried to calm her down after the fight and Ms Jacks said: "I put it to you that his wish to calm you down was interpreted as blocking your way."
Ms Green said: "He barred my way, which he has no right to do."
Ms Green after leaving the firm, worked from home on some accounts for LOM, but Ms Green said: "It seemed to me after pacifying me on the 22nd of January (when the fight took place), they made a concerted effort not to let me trade."
The case continues today.
