Amid reported controversies surrounding Saint Lucia’s Citizen by Investment Program (CIP), government has responded to a lawsuit reportedly filed by an (unrelated) investor.
Government sources indicate that Philippe Martinez, Producer of MSR Media and his associated companies have filed a lawsuit against several individuals, including former Saint Kitts & Nevis Prime Ministers Timothy Harris and Denzil Douglas, Caribbean Galaxy Real Estate Limited, and CEO of the Saint Lucia Citizenship by Investment Unit Mc Claude Emmanuel.
The case was filed in the United States District Court, Middle District of Florida, Tampa Division.
In a report to the media, MSR Media claims to possess documentary evidence including bank records and audio recordings that substantiates its allegations of corruption and unfair practice in the Citizenship by Investment Program in Saint Lucia.
The MSR report alleges that former PMs Harris and Douglas along with the CEO of Caribbean Galaxy Les Khan engaged in money laundering, conspiracy to engage in money laundering and fraud in the CIP business.
According to MSR, Caribbean Galaxy has been operating a scheme in the CIP involving the under-selling of passports.
In Saint Lucia, MSR claims that Caribbean Galaxy – as a CIP investor sells its CIP shares for as low as USD 65,000 .00, though the legal price for CIP shares is USD 100,000.00 in Saint Lucia under the National Bond Option and USD 200,000 for shares sold by developers investing in a real estate project.
The report further alleges that a vast majority of Saint Lucia’s CIP shares owned by Caribbean Galaxy are subjected to a fraudulent financing scheme.
In a statement to the media, Martinez alleges that in a recording, Emmanuel names a government official that is in charge “of closing their eyes on the Galaxy scheme.”
He said since government officials are hesitant to provide responses on Saint Lucia’s CIP status, these officials will do that, “but in front of a US Federal Court.”
MSR’s lawsuit further alleges that Caribbean Galaxy exercises complete control of the CIP operations in Saint Lucia.
Martinez said that MSR will produce an audio recording in court, of a foreign CIP marketer and promoter, which Caribbean Galaxy stipulates that when CIP shares are sold, the promoter is duty bound to use Galaxy’s preferred agent to complete the CIP application locally.
The MSR report adds that to ensure that local agents are utilized, Caribbean Galaxy covers the price of the fee earned by the local agent. It states that after the Saint Lucia government is paid from the fees earned, there is very little money left for Caribbean Galaxy to adequately develop the intracultural project that is proposed to develop.
Consequently, the report states that government must grant Caribbean Galaxy additional CIP shares so that the company can collect enough money from the CIP share sales to fund the infrastructure project.
Furthermore, MSR claims that it has gained information from a recorded conversation involving Emmanuel, stating there is a backlog of about 11,000 CIP applicants on the waiting list.
While MSR is not an investor in Saint Lucia, Martinez said the lawsuit is intended to cleanup the CIP business for its sustainability ensuring fair competition.
However, in a statement, government denounces any discounting or underpricing of citizenship by any promoter or developer and that the full, legislated investment sum must be paid by every successful applicant.
A release from the Office of the Prime Minister (OPM) states that Emmanuel’s role as the CEO of the Saint Lucia CIP Unit is exclusively for the efficient administration of the CIP Unit in accordance with the policies set by the laws of Government of Saint Lucia.
The release adds that to date, Emmanuel has performed his role commendably and ethically.
The government notes that the inclusion of the Saint Lucia Citizenship by Investment Programme is merely an attempt to involve Saint Lucia in a dispute between Caribbean Galaxy in another territory which has absolutely no part in the contractual obligations, grievances, or operational misgivings between MSR Media and the Government of Saint Kitts & Nevis.
The Government of Saint Lucia’s CIP Unit gives every assurance that it will defend its reputation and image against any false and malicious attacks and will not be bullied by anyone or company.
The Government of Saint Lucia expresses its full confidence in the management of its CIP Unit by Mc Claude Emmanuel. – R.A.