The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

EDISON Sumner tendered his resignation as director and CEO of the Bahamas Chamber of Commerce and Employers Confederation on Friday following a report this week about his ten-year ban from the securities industry.

A copy of his resignation letter was initially posted on the chamber's Facebook page but it was eventually removed. Neither Mr Sumner nor chamber officials could be reached for comment up to press time on Friday. It is not clear if Mr Sumner's resignation has been accepted by the chamber's board of directors.

His resignation attempt comes days after the chamber’s chairman, Michael Maura, endorsed him in a statement as “an integral part of the success of the BCCEC” and someone whose performance was not affected by the Securities Commission's proceedings involving him.

Mr Maura on Tuesday said the BCCEC looked forward to Mr Sumner's continuing role as CEO. But in his resignation letter Mr Sumner said the securities commission issue made it challenging for him to continue leading the organisation.

“The BCCEC is too important an organization and has too great a responsibility to be distracted or compromised by these matters,” he said. “My decision to resign is in the best interest of the BCCEC as well as in the best interest of me and my family at this time.”

Mr Sumner said he has served as CEO for five-and-a-half years. He has maintained a high profile during his tenure as the public face of the organisation, advocating on behalf of the business community on a host of issues.

He said in his resignation letter that he “worked selflessly and tirelessly to represent the interest of, and advocate on behalf of the BCCEC and its membership and the private sector at large, at the highest level of professionalism and efficiency, both nationally as well as regionally and internationally."

"We have had significant achievements and seen tremendous growth and development over the years and believe I am leaving the BCCEC in a much better state than when I assumed the role of CEO over five years ago,” he said. “Being the CEO of the BCCEC has been the job of my life and I have enjoyed immensely and I shall miss it, but life goes on. I wish to thank the Board of Directors, staff and membership for giving me the opportunity to work with you and to represent you over these years and I wish BCCEC nothing but great success and continued growth and development. I will continue to make myself available to the BCCEC if and when called upon to do so.”

Tribune Business had reported this week on a settlement agreement involving Mr Sumner and the Securities Commission related to activities before his tenure as BCCEC's CEO.

The agreement concerned his role as a five percent shareholder, director and chief operations officer of Montaque Capital Partners, a failed broker that collapsed into court-supervised liquidation in 2011. The Securities Commission’s case against Mr Sumner centred on his simultaneous role as president and chief executive of the internet, TV and data provider Internet Protocol Solutions International, a related-party that owed money to Montaque.

The settlement agreement said: “In the case of the defendant [Mr Sumner], a company called IP Solutions International, for which at all material times the defendant acted as its president and chief executive, and which was also an investee company of Montaque, was indebted to Montaque in the amount of $178,006." The agreement said IPSI agreed to pay Montaque Capital Partners liquidators $60,000 to settle the debt and also purchase the 16 percent equity stake back from the insolvent broker/dealer. These terms were adopted into the settlement agreement, with Mr Sumner in a February 25, 2016 affidavit describing IPSI as having zero net worth. He added at the time: "Unfortunately, IPSI is currently unable to pay the agreed amount of $60,000 as set out above. It is seeking financial assistance to fund the settlement. At this time IPSI is not able to confirm a date for payment."

The Securities Commission identified three infractions related to Mr Sumner: improper record keeping/accounting, the mingling of client funds with those of the company’s and conflict of interest.

Documents Tribune Business reviewed suggested Mr Sumner was a minor player in Montaque Capital Partners’ failure with the main role occupied by 95 percent majority owner and president Owen Bethel.

Mr Sumner’s sanctions included a ten-year ban and a collective $150,000 fine. Mr Bethel’s sanctions included a life ban from the securities industry; a collective $600,000 in fines and repayment of an “acceptable” amount of the $3.5m owed to Montaque Capital Partners by related-parties and affiliates.

The commission said of Mr Bethel: “…the defendant’s actions violated the securities laws and were contrary to the public interest. The defendant’s conduct was both detrimental and prejudicial to the interest of Montaque and its clients.”