U.S senator invested US 6,000.0 in Jamaica and earned $100,000.00 in a few years .
RS Robinson Investments
KINGSTON, Jamaica — A US$6,000 investment by Texas Senator Ted Cruz in a Jamaican-based holding company has landed the Republican in hot water.
According to reports in the US media, Cruz has “potentially” violated ethics rules by failing to publicly disclose his financial relationship with the company during the 2012 campaign.
US Senator Ted Cruz
The reports say that the relationship originated with a US$6,000 investment Cruz made more than a decade ago in a private equity firm founded by his college roommate, Jamaican David Panton.
The company, named as Caribbean Equity Partners Limited had Cruz as a founding director and preferential shareholder, according to registration documents.
But Cruz says he has not had any relationship with the private equity firm since he cashed out an initial investment of US$6,000 for a total return of US$100,000 more than ten years ago in a private agreement with Panton.
The firm held US$100 million in assets under management in the mid-2000s, according to US news reports, with a focus on service and tourism investments in Jamaica and the Caribbean.
Cruz told TIME Thursday that the initial failure to report the financial relationship was an oversight that he corrected last May on his own initiative in his first filing after his election to the Senate. “It was an omission that was inadvertent,” Cruz is reported as saying.