St. Kitts government revokes passports after US investor charged with fraud

St. Kitts government revokes passports after US investor charged with fraud

The St. Kitts and Nevis government has revoked the passports granted to two people who secured citizenship under the Citizenship by Investment (CBI) programme, after it was alleged that the money they used to obtain the documents came from misappropriation of investor funds.

In a statement issued yesterday, the government said the revocation of the citizenship given to attorney and investor David Kaplan and his wife, Lisa, “reiterated its commitment to the highest level of due diligence and transparency” in the CBI programme.

The US Securities and Exchange Commission (SEC) has filed fraud charges and obtained an asset freeze against Kaplan and three entities that he controls, based on an allegedly fraudulent scheme that raised US$15.8 million from 26 investors in eight states.

According to the SEC complaint which was unsealed last week, Kaplan repeatedly lied to prospective investors by stating that their funds would be invested in a low-risk, private off-shore trading program that would be provide estimated monthly profits of 10 percent. The complaint alleges that Kaplan did not use investor funds as promised but instead used at least US$2.3 million for his personal benefit, including US$79,394 which he wired to a St. Kitts law firm to obtain St. Kitts and Nevis citizenship for him and his wife.

“Based on the filing by the U.S. Security Exchange Commission…the Government of St. Kitts and Nevis has decided to revoke the passports with immediate effect,” the Timothy Harris administration said in its statement.

It added that the Kaplans’ application was processed after appropriate due diligence checks by a highly reputable, internationally renowned due diligence service provider found no evidence of impropriety or illegal activity.

The SEC complaint also revealed that Kaplan sent US$1.1 million to his wife, Lisa Kaplan, a purported charitable foundation, and a corporation that Kaplan controlled; invested at least US$360,000 in an investment programmed offered by WMA Enterprises LLC, an allegedly fraudulent scheme at the center of a federal criminal indictment in the US state of Ohio; and made approximately US$1.8 million in Ponzi-like payments to other investors.

In addition to the freeze order against Kaplan, the court issued an asset freeze against his wife, the Water-Walking Foundation Inc., and Manna Investments LLC, which are alleged to have received investor funds to which the SEC said they have no legitimate claim.

June 28, 2020
Dominica Extends List of Family Members as Dependents

In a bid to make Citizenship by Investment Program more attractive, the Government of the Commonwealth of Dominica has simplified the addition of other family members, who can be included as dependants with the main applicant, on 24th June, 2020. The new changes will allow adult children, parents, grandparents, and siblings to be added along with the […]

June 28, 2020
After Dominica, Grenada opens a Consulate in Dubai

With an aim to bolster the ties between UAE and Grenada and citizenship by investment program, Grenada has opened its first consulate in Dubai. This step is expected to develop cultural, economic and scientific ties between the two countries and the Middle East region at large. The Grenadian Consul General to the UAE, Rose Ann […]

June 17, 2020
Canada to Modernize and Upgrade Immigration System

Canada is expecting a huge turn out once the restrictions on international travel are relaxed. This information is revealed on a document released by the federal government website. The document invites vendors who can help modernize the present Immigration, Refugee and Citizenship Canada (IRCC). The government expects the vendors to improvise and modernize the process […]

June 3, 2020
Dominica First to Receive Loan to Improve Air Connectivity in the Caribbean

On May 28th, 2020, the World Bank announced a concessional loan worth US $ 13 million to be conceded on June, 01, 2020for the Commonwealth of Dominica to improve the overall air connectivity in the Caribbean region and upgrade the airport infrastructure. The loan is aimed to facilitate safe accommodation of diverted flights, post disaster relief, post pandemic […]

ABOUT

DUBAI OFFICE

Copyright 2020 CTrustGlobal Ltd. | All Rights Reserved | Working under the umbrella of Trust Group

phonefaxpaper-plane linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram