MSR Media uncovers $13 Million in payments to ex-head of St. Kitts & Nevis CIU. Officials dismiss allegations.
In a significant development in the ongoing legal battle related to the Caribbean Citizenship by Investment (CBI) programs, MSR Media has filed bank records revealing over $13 million in payments to Les Khan, the former head of the St. Kitts & Nevis Citizenship by Investment Unit (CIU). The records, obtained through a legal process in the United States, were filed in a St. Kitts & Nevis court on August 29, 2024, and have raised serious questions about the integrity of the CBI programs.
Background of the Legal Dispute
The dispute between MSR Media and Caribbean Galaxy, a resort development company registered in St Kitts & Nevis with close ties to China, began earlier this year when MSR Media filed a RICO lawsuit in May 2024. The RICO suit, or Racketeer Influenced and Corrupt Organizations Act, adopted in 1970, is a law designed to combat organized crime. It allows for the leaders of a syndicate to be tried for the crimes they ordered others to do or assisted them in doing.
Philippe Martinez, a film producer and the founder of MSR Media, who was previously considered one of the stakeholders of the Caribbean CBI industry, accuses Caribbean Galaxy of illegal activities related to the CBI programs in St Kitts & Nevis and St Lucia. Caribbean Galaxy has vehemently denied these allegations, calling them false and baseless. The company emphasized its compliance with the laws internationally and highlighted its contributions to local economies through various projects. Former St Kitts & Nevis Prime Minister Denzil Douglas also dismissed the accusations as baseless.
Revealed Bank Records
According to the press release from MSR Media, the bank records from Bank of America reveal payments of more than $13 million to Les Khan’s U.S. company, LKCS, LLC. The majority of these payments were related to the controversial jail project in St. Kitts and Nevis. The records contained several transactions that MSR Media deems suspicious, including more than $10 million payment from the Accountant General of CIU. This payment was for Khan’s compensation as the CEO of the CIU and was transferred to him after he left the office.
Questions Raised by MSR Media
MSR Media has raised several questions regarding these transactions, particularly focusing on the timing and nature of the payments. The company questions why Caribbean Galaxy paid Khan’s company while he was still in his official role and why significant payments were made after left the office. Additionally, MSR Media is seeking to understand who is behind the companies that made those transfers. Philippe Martinez accused several individuals, including Les Khan, former Prime Ministers Timothy Harris and Denzil Douglas, and Galaxy executive Ying Jin, of engaging in corrupt practices. The records from Bank of America, already filed to the St Kitts & Nevis Court, can be regarded as evidence revealing corruption among officials related with CBI programs.
Caribbean Galaxy’s Response
In response to these allegations, Caribbean Galaxy has maintained its innocence and commitment to upholding the highest standards of integrity in the CBI process. The company has stated that its economic development programs have created hundreds of jobs and generated significant revenue for the governments of St Kitts & Nevis and St Lucia. Caribbean Galaxy has vowed to defend its name against what it calls “false accusations” and has emphasized its compliance with the laws in both countries. In August 2024, Caribbean Galaxy filed a defamation lawsuit against Phillipe Martinez, accusing him of spreading false information about its operations. The company looked determined to protect its reputation and hold those responsible for misinformation accountable.
Implications for the CBI Programs
The ongoing Court cases may have significant implications for the CBI programs in the Caribbean. The allegations of corruption and illegal activities could undermine the credibility of these programs, which have been a vital source of revenue for Caribbean nations. The case also highlights the need for greater transparency and oversight in the administration of CBI programs to prevent abuse and ensure their integrity.
As the legal battle continues, MSR Media has indicated that it will provide further explanations regarding the transactions during the ongoing court hearings. The company also plans to file relevant bank transactions for other officials and entities involved in the case. The outcome of this case could have far-reaching consequences for the CBI industry and the reputation of the involved parties. The governments of Caribbean nations (St. Kitts & Nevis, The Commonwealth of Dominica, Antigua & Barbuda, Grenada, and Saint Lucia) have already drastically reformed their CBI programs per the Memorandum of Agreement signed in March 2024 and implemented throughout the summer and agreed ‘6 principles’ during the US-Caribbean talks. These documents, along with the general enhancement and harmonization of CBI programs across the Caribbean, assume information sharing and periodic audits by unbiased third-party firms, as well as the establishment of a joint governing body for CBI programs. Such steps can mitigate the risks of corruption.
In conclusion, pieces of evidence revealing any illicit activity might mark a pivotal moment in the fight against corruption in the CBI industry. The court case in St. Kitts & Nevis will be closely watched as it unfolds, it has the potential to reshape the future of CBI programs in the Caribbean.