The Fraud Squad is currently investigating a $41-million racket at the Jamaica Money Market Brokers (JMMB).

The alleged mastermind behind the scam, 31-year-old André Dookie, was held by the police and was denied bail yesterday when he appeared in the Corporate Area Resident Court.

He is alleged to have tried to swindle more than $40 million from JMMB after devising a scam which involved another financial institution.

Allegations against Dookie are that he opened two current accounts, one with JMMB and another with a financial institution based in New Kingston, St Andrew.

Investigators say cheques amounting to almost $41 million were drawn on the other account and deposited in the JMMB account.

scam uncovered

The two institutions are said to have uncovered the scam after Dookie managed to obtain $10 million from JMMB.

Dookie pleaded not guilty to the allegations and was remanded until July 2.

The police say the way in which the racket was carried out is termed 'kiting'.

Kiting involved the use of two banks in which someone can write a cheque which far exceeds the actual amount in an account and take it to another financial institution.

Before the deposit can be processed, the person can then go to the second bank and withdraw money before the cheque bounces.