09122018 BUSINESS

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WEDNESDAY, SEPTEMBER 12, 2018

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Grand Lucayan: ‘Many’ managers want severance

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A “SUBSTANTIAL number” of the Grand Lucayan’s middle management staff want to take a severance package and leave the resort, a trade union leader said yesterday.

Obie Ferguson, pictured, the Trades Union Congress’s (TUC) president, told Tribune Business that feedback received to-date indicated that “a sizeable number” of Bahamas Hotel Managerial Association (BHMA) members would exit if the terms

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A

WELL-known Bahamian banker has been barred for life from the securities industry over the “conflicts of interest” and client losses involved in his broker/dealer’s $17m collapse.

The Securities Commission imposed the ultimate sanction on Owen Bethel, pictured, Montaque Capital Partners’ principal and 95 percent majority shareholder, for the mismanagement of client funds and using the broker/ dealer to “fund personal loans” to directors and

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

will demand of their online gaming platforms.

Laying out the “eightstep” process, required by the Gaming Act and its accompanying regulations, before modified games can be released to Bahamian patrons, Mr Bastian said Island Luck and other web

SEE PAGE 7

Bahamas broker: We’ve addressed $120k fine woes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMAS-based broker/dealer yesterday said it had implemented multiple reforms to address legal breaches that resulted in a $120,000 fine from local regulators.

Guy Gentile, pictured, head of Bay Street-based Swiss-America Securities, told Tribune Business that “many changes” have been made to the company’s compliance regime after the

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Bahamian banker’s life ban on $17m collapse PUBLICATION: Guardian/Tribune

Sebas: We require 10-12 months for 5% patron levy ISLAND Luck’s principal last night argued that 10-12 months is needed before web shops can successfully implement the five percent patron tax - a timeline that would cost the Government $20m.

Sebas Bastian, pictured, in a September 10, 2018, affidavit filed with the Supreme Court, said Island Luck and others had “learned a lot of expensive lessons” from rushing to complete the kind of changes that the new tax

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Securities Commission identified failings in its customer due diligence processes and record-keeping procedures.

“The firm and myself take SCB (Securities Commission of the Bahamas) regulations very seriously, and have made many changes to further our compliance goals,” Mr Gentile said in an e-mailed response to Tribune Business’s inquiries. “This settlement is from an audit nearly

SEE PAGE 7

COUNTRY: BAHAMAS

Chamber endorses SIZE: CEO over 10-year Strip Ad(10.5" wsecurities x 2" h)barring

* Owen Bethel denies ‘unscrupulous conduct’ * But regulator deal details ‘conflict of interest’ * $3.5m to personal loans, film, fashion moves

related party entities.

Despite Mr Bethel denying he had “engaged in any unscrupulous conduct” relating to client assets, the settlement deal agreed with the Securities Commission confirms that he used Montaque Capital Partners to finance his other ventures - especially

the

Islands of the World fashion show and film/ movie-related initiatives.

These ventures owed $3.5m to Montaque Capital Partners at the time of its collapse, and the June 18, 2018, settlement between the capital markets regulator and Mr Bethel said they involved

EDISON SUMNER

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

transactions for the latter’s “personal benefit”.

The Securities Commission, showing increased teeth in what appears to be a crackdown on rogue capital markets operators and their infractions, said reports by the broker/dealer’s liquidators, accountants Ed Rahming and Kenneth Krys, exposed three major legal and regulatory breaches by Mr Bethel’s

THE Chamber of Commerce last night fully endorsed its chief executive’s performance and integrity after details of his ten-year securities industry ban and total $210,000 fines emerged.

Michael Maura, the Chamber’s chairman, in a signed statement described Edison Sumner as “an integral part of the success” of the private sector advocacy

SEE PAGE 5

SEE PAGE 6

PAGE 2, Wednesday, September 12, 2018

New chair for BISX-listed bank

SCOTT ELPHINSTONE

FIDELITY Bank (Bahamas) majority shareholder yesterday named Scott F Elphinstone as chairman of the BISX-listed retail banking subsidiary with effect from August 22.

He replaces D Anthony Jones, who recently retired from the Board. Mr Elphinstone is a founding partner of Five Continents Financial, a Cayman Islands-based asset management firm, and for the past 20 years has acted as an independent director in the financial industry.

He has been a director of BISX-listed Fidelity Bank (Bahamas) since 2009, and also serves as a director of Fidelity Bank & Trust International and its banking subsidiary in Cayman.

“We would like to thank Mr Jones for his contributions as chairman over the years”, said Anwer Sunderji, chairman of Fidelity Bank and Trust International, the retail bank’s 75 percent owner.

“His extensive expertise and greatly-admired style of leadership have contributed to the constant growth and, in turn, the success of the company.

At the same time, we are very pleased to have found such an outstanding successor to Mr Jones in Scott F Elphinstone – a man with both solid professional qualifications and substantial experience in the financial field”.

THE TRIBUNE

Provider plans ‘contactless’ digital cash service launch A MOBILE payment provider yesterday said it plans to roll-out a digital cash service that will allow Bahamians to make “contactless” transactions with merchants and others.

Island Pay, which was founded in 2016, said its Contactless Companion Platform (CCP) will allow consumers to load money on to cards, fobs and a range of wearable items. It added that the service will allow Bahamians and visitors alike to make contactless payments between themselves or with

Island Pay merchants across the whole archipelago.

CCP uses secure chip technology from Samsung Semiconductor, while the software application platform is provided by Smartlink, a Swiss financial technology firm specialising in mobile and alternative payment solutions.

Frank Svatousek, Island Pay’s chief executive, said: “By adding Smartlink to the Island Pay platform we bring immediate, critical benefits to our Bahamian customers including easy bill payment,

mobile top-up and merchant solutions.

“The launch of the Island Pay cashless payment system, licensed by the Central Bank of The Bahamas, comes at a time when bricks and mortar banks are reducing their footprint, allowing us to serve the under-banked as well as the un-banked.”

“The Smartlink CCP solution brings contactless digital cash to everyone in all levels of society,” says Eric La Marca, chief executive and founder of Smartlink. “With CCP in place, you can make

contactless payments via any enabled device of your choice, whether it’s a dedicated smart card, wristband, key fob or even your smart watch or ring. As long as it’s able to accommodate the secure chip technology from Samsung, there’s hardly any shape or size limit.”

Mr Svatousek, describing Island Pay’s benefits, said: “It’s a tokenised service, making it as secure as existing mobile payments services. It gives parents the ability to safely transfer money to their children

and ensure they can only spend it on what the parents want.

“And, with its web-based or smartphone app interface, available for iOS and Android, it allows users to manage the service and deactivate the chip in the card, fob or wearable item if it is lost. We are thrilled to be working with Samsung and Smartlink, as it brings together a powerful combination of security, control and utility for our consumers throughout The Bahamas.”

SUPERCLUBS REPEAT VISITORS IN ‘PEOPLE TO PEOPLE’ TREAT SUPERCLUBS Breezes’ repeat visitors were recently treated to the Ministry of Tourism and Aviation’s People to People Tea Party. They experienced the party’s mix and mingle; teatime fare; fashion show; and dancing to the beat on the patio of Government House, Mount Fitzwilliam. The Ministry of Tourism hosts the People to People Tea Party to allow visitors to experience more than just sun, sand and sea.

HIGHLIGHTS of the Tea Party.

Photos: Kemuel Stubbs/BIS

THE TRIBUNE

Wednesday, September 12, 2018, PAGE 3

‘Smarter banking’ drives fee declines MINISTER MAKING HIS POINTE ON WORKFORCE

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Clearing Banks Association’s (CBA) chairman yesterday said “smarter banking” by consumers, rather than “across the board” reductions, have driven recent bank fee declines.

Gowon Bowe’s comments came following numerous complaints from Bahamians over what they perceived as exorbitant banking fees, resulting in the six commercial banks and Central Bank starting discussions on the matter last October with Dion Foulkes, minister of labour, who oversees the Government’s consumer affairs division.

The CHA chairman told Tribune Business: “What we have been going through is what I’m going to call an ‘education on all sides’. It was really a greater articulation of where we are coming from; the appreciation that all financial institutions are businesses that can choose their fees and billing practices based on their business models, as well as what services they want to promote and what services they want to retract.

“Primarily, the initial purpose of the meetings was around the cost of banking for the average consumer. I don’t want there to be false expectations around government

GOWON BOWE imposing or trying to set or alter the financial institution’s ability to make their own decisions regarding services and fees they charge. It’s a free market, but this was certainly an avenue to express concerns and try to find solutions.”

Mr Bowe added: “It would be inaccurate to say there are fee reductions.

What was articulated on Monday was that, for the most part, what you are seeing is the overall fee revenue has declined - but largely because customers have been better educated on how to bank smarter and take advantage of online services, and avoid fees associated with some of the manual services.”

He said Bahamas-based commercial banks have committed to publishing their fees for various services, which has led some

DION FOULKES consumers to shift from one institution another.

“There has been greater publication of fee rates of the various institutions,” Mr Bowe said.

“Some of that may have led to customers going to other institutions that may have cheaper fees for the services they want. Ultimately you will find some of the banks may have changed their fees because there is a low demand.”

Mr Foulkes said yesterday: “We started talks with the Clearing Banks Association last October, and had a meeting with them in November and a meeting with them again on Monday. I’m very pleased to announce that some of the banks have reduced their administrative fees for their various services.

BANK REFORMERS: ‘STILL MUCH TO DO’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net AN ANTI-BANK fee advocacy group yesterday argued there was “still much to do” to improve the industry, and expressed concern about insufficient education on the proposed credit bureau.

Dr Denotrah ArcherCartwright, lead organiser for Citizens Against Banking Exploitation (CABE), said the group was pleased to hear that concern over banking fees had not fallen on deaf ears, with the sector having reduced some administrative charges.

“Our top concerns were the high interest rates, fees and lack of consumer education,” she said. “To see such things now being addressed shows the power of advocacy, and what we can do when we stick to a goal.

“Our online petition is well over 5,000 signatures, and our online live meeting with the governor of Central Bank opened the eyes of thousands of Bahamians. Although it takes a few faithful to stand up, we have gathered the support of

thousands of Bahamians on this issue and the numbers increase each day.”

Following numerous complaints over banking fees, the six commercial banks together with the Central Bank have been engaged in talks since last October with Dion Foulkes, minister of labour, who oversees the Government’s consumer affairs division.

The Clearing Banks Association’s (CBA) chairman, Gowon Bowe, told Tribune Business yesterday that while there have been no across-the-board fee reductions, banks had reduced charges largely due to consumer behaviour.

“There is still much to do to have a less dysfunctional banking system, such as homeowner rights; a more Bahamian ownership; and justice for consumers,” said Dr Archer-Cartwright. “We urge the government and the Central Bank to partner with our organisation to continue to deal with these issues and create a more independent committee to address such things.

In the meantime, CABE is committed to continue to hold Central Bank and the

Government’s feet to the fire to improve banking for the average Bahamian.”

She added: “We also note that with the upcoming Credit Bureau’s introduction looming, we are concerned that not enough education has been provided. Neither have there been adequate opportunities to pull the many Bahamians who are already in debt, or will have ‘bad credit’, out of this situation. What can we do to help those persons before they are hit with this new system?The Government should recognise that they can be making things more difficult for those already in a bad position.

“Unless everyone’s credit rating will not be retroactive, this may create another banking bust and harm the economy even further. That point was not made clear.

Our organisation is here to assist in educating Bahamians, and we hope the Central Bank and Government will reach out to us and continue to consider the needs of the citizens of The Bahamas. We are not interested in fighting the Government but working for a better Bahamas for Bahamians.”

“All of the banks have embarked upon an educational programme with respect to their services.

Additionally, the Central Bank and the Clearing Banks Association has agreed to embark on a listing of all of the banks’ fees, or at the minimum the main fees that the banks charge.

“Just like the gas stations do, when you open the business sections of the dailies you will see the various prices per gallon of gas, we intend to do the same thing with the clearing banks so the consumers can know exactly which bank is charging which fees so to know which bank to do business with. We are very pleased the Central Bank has embarked on a literacy programme called ‘Get Money Smart Bahamas’.”

Mr Foulkes urged consumers to shop around for the right banking institution.

“I would encourage consumers to go in and talk to their banks, make comparisons and make a judgement call on which which bank you wish to do business with,” he added.

“At the end of the day the consumer has to be smart and examine each bank. Each one has different fees and schedules for their services. You’re not married to a particular bank, and if you are, get a divorce. Go to the bank that offers you the best possible arrangement.”

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET minister yesterday fired back at Opposition criticisms over the Government’s handling of labour concerns at The Pointe project, arguing that the situation was worse under the former administration.

Dion Foulkes, minister of labour, hit out at accusations

by Opposition leader, Philip Davis, that he was “delinquent” in his oversight of the development. His rebuke was in response to the minister’s explanation of the workforce clause contained in the Heads of Agreement between developers, China Construction America (CCA), and the Government that was signed under the former Christie administration.

Mr Foulkes said the clause had two interpretations. He added that the Minnis administration had opted to interpret the clause calling for a 70/30 labour split in favour of

Bahamians as a requirement to be satisfied over the lifetime of the project, and not a static ratio. But Mr Davis asserted that the agreement executed by the Christie administration calls for the labour ratio to be 70 to 30 in favour of Bahamians at all times.

Speaking outside Cabinet yesterday, Mr Foulkes said: “I beg to differ with Mr Davis. The situation was actually worse under the PLP. As of last year the percentages of Bahamians working at The Pointe were far less than it is now.

Mr Davis is, from a political point of view, absolutely incorrect.”

There have been repeated calls from the Bahamian Contractors Association (BCA) and its president, Leonard Sands, for the government to show just how many Bahamians are currently employed at the $200m development. The BCA previously branded as “hogwash” the government’s finding that The Pointe is not in breach of its heads of agreement on labour ratios.

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PAGE 4, Wednesday, September 12, 2018

THE TRIBUNE

Grand Lucayan: ‘Many’ managers want severance FROM PAGE ONE were right after the Government formally took control of the Grand Lucayan’s operations yesterday.

With its $65m purchase of the property’s real estate and other assets set to close on September 21, Mr Ferguson said confirmation of how many want to leave will be known “on a day or so” after a questionnaire to obtain this information was circulated among BHMA members.

“Some of the staff are asking for severance pay; quite a lot,” he revealed.

“I’m just trying to get the numbers. The feedback I’ve received is that it’s a substantial number. I believe most of the workers would take a package.

“That’s my general view, but we’re trying to get the exact number. I put out a questionnaire to the BHMA because we want to be in a position to say to the chairman [Michael Scott] how many persons are mindful to go that route.

“We will know the exact number in a day or so, but as it stands a sizeable number want to take severance pay.” The Grand Lucayan, Freeport’s sole remaining “anchor” mega resort, currently employs 423 workers, comprising both line and managerial staff. The BHMA represents the latter,

while the Commonwealth Union of Hotel Services and Allied Workers, headed

by Michelle Dorsett, looks after the line workers.

Mr Scott, chairman of Lucayan Renewal Holdings, the Government-owned special purpose vehicle (SPV) created solely to purchase and own the Grand Lucayan, has previously indicated his intention to make available a severance package for those workers wanting to exit.

The SPV, though, will have to be careful over who it releases and how many, as it will not want to compromise hotel operations and service quality when beginning its search for a private sector buyer to take the Grand Lucayan off the Government’s books in the quickest possible time. It will therefore likely reject some severance applications, especially by individuals in key positions or who have inbuilt proprietary knowledge of the hotel and will be difficult to replace.

Mr Ferguson, meanwhile, indicated his desire to meet Mr Scott this week, once the latter has addressed all Grand Lucayan staff today, to resolve all union concerns.

The BHMA is a TUC affiliate, and he said: “I spoke today with Mr Scott, and he indicated to me that he’s having a meeting with

GRAND LUCAYAN RESORT

the staff and he will meet with the unions, so we can discuss the details of the way forward.

“We want to make sure our understanding of the arrangement is consistent with Lucayan Renewal Holdings’ position. We intend to meet with chairman Scott, finalise the numbers, and see how the Government would be interested in moving forward with severance pay and so on.”

Mr Ferguson said the BHMA had been working on a new industrial agreement with the Grand Lucayan’s departing owner, Hutchison Whampoa, and would discuss “how best to approach that” when it meets Mr Scott.

The TUC president also backed the Government’s purchase of the Grand Lucayan as “the proper thing” to have done, given the negative economic and unemployment

consequences for the hotel’s staff and wider economy had Hutchison Whampoa followed through with threats to close the Lighthouse Pointe, the last remaining property.

“I commend the Government for doing what it did in the interests of the Bahamas and interests of workers,” Mr Ferguson told Tribune Business. “The first obligation a government has is its citizens. Certainly my union, and the unions involved, will work with the Government to ensure that enterprise remains profitable and keeps people employed.

“The Government did the prudent thing to preserve the status of the workers and do what it has to do to make the property marketable to potential buyers. While there are people who may have a different view, governing is one thing but when you are a spectator you tend to have all the solutions

and answers. When governments do good things you must say so.”

The Minnis administration had planned to complete the Grand Lucayan’s purchase and operational takeover at the same time on September 11, but the deal’s closing has been delayed by the need to obtain a House of Assembly resolution authorising the Government to guarantee repayment of the debt taken on to finance the acquisition.

Mr Scott previously revealed to Tribune Business that closing of the Government’s $65m purchase may be “slightly delayed” because the necessary resolution authorising the Government guarantee can only be effected when Parliament resumes on September 19 following the summer recess.

The guarantee will be worthless without the resolution, since this is required

to bring it into compliance with the law in the form of the Financial Administration and Audit Act. The Minnis administration is thought to be financing the Grand Lucayan purchase with a combination of debt and the $25m allocated in the 2018-2019 budget to support the now-abandoned Wynn Group purchase.

The deal is structured so that the Government pays a $10m deposit, which it has done, and a further $20m upon closing. This is likely to be financed largely through the budget, with the $35m balance split into semi-annual $5m payments spread over three-and-a-half years.

That portion will come from debt, with the funds likely to be extended by the Grand Lucayan’s departing owner, Hutchison Whampoa, as a form of vendor financing. This was proposed a year earlier, when the Minnis administration first suggested it would take an equity stake in a purchase of the resort.

A mortgage, secured on the Grand Lucayan’s real estate assets, will provide security for the loan or any form of debt financing. The Government guarantee is needed to provide assurance to the lender that its monies will be repaid.

NOTICE JACQUELLE INVESTMENTS LIMITED In Voluntary Liquidation

NOTICE ALPHA & OMEGA LINKS INC. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, JACQUELLE INVESTMENTS LIMITED is in dissolution as of September 5, 2018

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ALPHA & OMEGA LINKS INC. is in dissolution as of August 30, 2018

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

LIQUIDATOR ______________________

NOTICE DAZZIE BAY OCEAN CORP. In Voluntary Liquidation

NOTICE MAKOR WEALTH MANAGEMENT LTD. In Voluntary Liquidation

NOTICE KRABBE UNITED LTD. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, DAZZIE BAY OCEAN CORP. is in dissolution as of September 7, 2018

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, MAKOR WEALTH MANAGEMENT LTD. is in dissolution as of August 27, 2018

NOTICE HILTON CONTRACTING COMPANY CORPORATION In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, HILTON CONTRACTING COMPANY CORPORATION is in dissolution as of September 10th, 2018.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, KRABBE UNITED LTD. is in dissolution as of August 27, 2018

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

LIQUIDATOR ______________________

NOTICE CRISTIPOOH LIMITED In Voluntary Liquidation

NOTICE JUPITER MOONS INVESTMENTS LTD. In Voluntary Liquidation

NOTICE Mountain Spring Holding Ltd. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, CRISTIPOOH LIMITED is in dissolution as of September 7, 2018

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, JUPITER MOONS INVESTMENTS LTD. is in dissolution as of August 28, 2018

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Mountain Spring Holding Ltd. is in dissolution as of August 27, 2018

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

LIQUIDATOR ______________________

THE TRIBUNE

Wednesday, September 12, 2018, PAGE 5

Bahamian banker’s life ban on $17m collapse FROM PAGE ONE firm.

Besides failing to maintain proper books and accounting records, the regulator identified a “failure to segregate clients assets and/or accounts” and “conflict of interest” as the two principal failings at Montaque Capital Partners prior to its collapse into insolvency in 2011.

“During the material times and notwithstanding the defendant’s [Mr Bethel] explanation, the defendant’s actions violated the securities laws and were contrary to the public interest,” the settlement agreement stated. “The defendant’s conduct was both detrimental and prejudicial to the interests of Montaque and its clients.”

“The issues revealed in the [liquidators] reports included Montaque being used, either directly or indirectly, to fund personal loans which the directors obtained for themselves, for related parties and for third parties, including about seven companies belonging to [Mr Bethel].”

These companies include Mode Iles Ltd, which was formed to produce Mr Bethel’s Islands of the World Fashion Week, and Bahamas Film Invest International, an entity that led a failed bid to acquire the Bahamas Film Studio project in Grand Bahama.

The settlement agreement noted that numerous transactions relating to these ventures were conducted via accounts at Montaque Capital Partner and its affiliate, which were “authorised” by Mr Bethel “for his own personal benefit” as well as that of the seven companies.

It added that this use of monies “belonging to Montaque and/or its clients” was confirmed by an affidavit sworn by Mr Bethel on March 2, 2016. “The Commission further notes that, contrary to the defendant’s [Mr Bethel] assertion in his affidavit that Montaque did not suffer any loss as a result of the transactions, the official liquidators have concluded otherwise, attributing the resulting loss as having been borne

by either Montaque of its clients,” the settlement deal stipulated.

“The official liquidators noted that it was hard to say with any precision who bore the loss because of the poor maintenance of books and records. However, the loss was borne by one or the other.

“Following on from the above, the reports also outlined Montaque’s failure to maintain books and records as required by statute, and the extensive comingling of client and company assets resulting from the failure to segregate accounts as required by statute.”

The Securities Commission settlement said Mr Bethel’s 2016 affidavit “further demonstrated the intermingling of funds” belonging to clients, although he asserted “there was no intent to deprive clients of their assets”.

“The defendant indicated that although he does not agree with the premise for the Commission’s sanctions, he has accepted that as a director his actions ultimately negatively impacted Montaque and its clients,” the document, obtained by Tribune Business, states.

“The defendant further noted that, to expedite the conclusion of this matter, he will accept ‘without prejudice’ sanctions imposed by the Commission. The defendant has also declared his current inability to pay penalties in full.”

The Securities Commission, borrowing language used by the US Securities & Exchange Commission (SEC) in its agreements, allowed Mr Bethel to “neither admit nor deny” the allegations against him or associated liability.

In return, Mr Bethel accepted the facts in the settlement agreement and to be gagged from speaking publicly about the details.

The Securities Commission then imposed a life ban on Mr Bethel participating in the capital markets industry, although he can apply for this to be lifted after 15 years.

Other sanctions included fines of $200,000 each for the record-keeping, client funds comingling and “conflict of interest”, making a

total of $600,000. Mr Bethel is also required to “pay to the official liquidators an acceptable amount” from the $3.5 owed to Montaque Capital Partners by himself and related parties.

The Securities Commission pledged “not to pursue criminal offences that may potentially be commenced via the Office of the Attorney General” if Mr Bethel complied with the sanctions and settlement terms, with payment of the fines “expected within 30 days” of June 18. It is unclear if payment has been made, but this seems unlikely.

Tribune Business revealed early last year how Montaque Capital Partners’ lliquidators had recovered just 15 percent of its identified assets, while clawing back minimal sums from Mr Bethel and overdrawn clients.

Messrs Rahming and Krys, in their fourth and final report to the Supreme Court, said they had only been able to recover $2.6m out of almost $17m held in the broker/dealer’s name.

They claimed to have received just $75,000 from Mr Bethel, despite determining that he - and entities he controlled - owed around $3.5m, with related party transactions having played a significant role in the company’s insolvency.

But Mr Bethel, in his 2016 affidavit, alleged he had been informed by his attorneys that many of the related party debts owed to Montaque Capital Partners were “not recoverable” since they were more than 12 years-old and therefore “statute barred”.

He argued that he had been co-operating with Messrs Rahming and Krys, even though the liquidators had told him they “may have potential claims against me personally” over the company’s failure and that of its affiliate, Montaque Corporate Partners.

Mr Bethel, as at March 2, 2016, said he had already paid the liquidators some $156,707 as a sign of “good faith”. He alleged: “At no time did I engage in any unscrupulous conduct so as to deprive the companies and/or clients of their funds.

“As was the custom of

Corporate and Capital, several clients over the years agreed to invest in certain deals and financial initiatives, which were speculative in that they may not prove to be immediately financially rewarding.

“In some instances the charges for expenses were applied to the clients’ account at Corporate and Capital, and either I or a nominee company would serve as director or shareholder,” Mr Bethel continued.

“In cases where there were financial losses, Corporate and Capital did not pursue recovery of the debts as the clients remained valuable clients of the businesses and it was felt that the funds would be paid and credited.

“As far as I am aware, and based on the course of dealings, at no time did I or any officer or employee of Corporate and/or Capital

benefit from clients’ funds otherwise as stated herein.”

Mr Bethel, though, said he took “full responsibility for any accounting irregularities that may have resulted” due to this policy. However, when it came to the seven relatedparty companies that led his fashion and film/movie interests, he said all had virtually no assets or cash, and collection of the debts was “statute barred” in any event because they were so old.

Among the related parties was TropiKids, 45 percent of which was owned

by Mr Bethel, with other directors including Paulette and Marion Bethel. They were not involved in Montaque’s collapse, and there is no suggestion they have done anything wrong.

The affidavit, though, admitted that Mr Bethel owed his company’s estate a net $330,061 for personal

expenses. These included $35,127 for repairs to his personal home; $66,975 for unidentified “special projects”; and $384,665 for credit card payments.

“In 2008-2009 a decision was made to reduce my salary by 25 percent with the intent that the difference would be applied to an ongoing settlement of these personal expenses,” Mr Bethel alleged.

“This arrangement was in place for two years prior to the winding up Order and resulted in $60,000 of my salary remaining with Capital. As explained further below, I am currently not in a financial position to repay these amounts owing.”

Mr Bethel alleged that his remaining net worth was largely tied up in his equity interest in Bethel Brothers Morticians, and that he was unable to pay the sums owed as a result.

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Medical Insurance and Pension Plan offered (Contributory).

Salary commensurate with skill and experience.

Interested persons are to send a cover letter and resume to humanresbahamas@gmail.com NO LATER THAN 17TH SEPTEMBER, 2018.

PAGE 6, Wednesday, September 12, 2018

THE TRIBUNE

CHAMBER ENDORSES CEO OVER 10-YEAR SECURITIES BARRING FROM PAGE ONE body since 2013 following his “settlement agreement” with the Securities Commission over activities prior to joining.

The Chamber statement was released after Tribune Business obtained the agreement, signed on July 18, 2018, relating to Mr Sumner’s previous role as a five percent shareholder, director and chief operations officer of the failed

broker/dealer, Montaque Capital Partners, which collapsed into court-supervised liquidation in 2011 (see other article on Page 1B).

Related party transactions featured heavily in Montaque Capital Partners, and the Securities Commission’s case against Mr Sumner centred on just one - Internet Protocol Solutions International (IPSI), the “triple play” Internet, TV, and data/communications provider - for

JOB VACANCY

Wholesale Pharmaceutical Sales Representative A leading wholesale company requires the services of an experienced Wholesale Pharmaceutical Sales Representative. It is a fulltime position.

Applicants must possess the following MINIMUM qualifications; Associate Pharmacy degree or higher 3 or more years working experience in Wholesale Sales, Marketing, & Trade Promotions Must have an automobile and be 25 years of age or older with a Valid Driver’s License Must be able to multitask and have strong organizational skills Proficiency in Word, Excel, Power Point, & Popular Web-Based Platforms (Face Book, Twitter, etc.)

Good Communication Skills (Verbal & Written) Be able to work with little supervision

which he was also president and chief executive.

IPSI, whose chairman was former governor-general, Sir Orville Turnquest, and included other prominent Bahamians such as Larry Carroll and Fritz Stubbs as directors, owed Montaque Capital Partners some $178,006 when the broker/dealer fell into insolvency.

Mr Maura last night said the settlement agreement related to events prior to Mr Sumner’s hiring, “and the appointment took into consideration” what was detailed in it.

“The [Chamber] chief executive advises that the settlement agreement represents acceptance of responsibility, as a director, for the matters contained therein and draws to a close an extended process,” Mr Maura added.

“The performance of the Chamber chief executive has not been impacted by the proceedings of the Securities Commission, and he has been an integral part of the successes of the Chamber and its increased profile and contribution to the economy of

the Commonwealth of The Bahamas and, specifically, the activities of commercial enterprises represented by the BCCEC.” Mr Maura gave Mr Sumner the Chamber’s full backing to continue in his post, adding: “The BCCEC looks forward to Mr Sumner’s continued efforts in his role as the chief executive.”

The documents obtained

by Tribune Business suggest that Mr Sumner was a minor player, and almost “collateral damage”, in Montaque Capital Partners’ failure, with the main role occupied by 95 percent majority owner and president, Owen Bethel.

This is indicated by the much harsher sanctions imposed by the Securities Commission against Mr Bethel, which include a life ban from the securities industry (appealable after 15 years); a collective $600,000 in fines; and repayment of an “acceptable” amount of the $3.5m owed to Montaque Capital Partners by related parties and affiliates.

Mr Sumner, by contrast, received just a ten-year capital markets ban that can be

LEGAL NOTICE International Business Companies Act (No. 45 of 2000)

Advantage Alpha VI Fund Ltd. (the “Company”)

In Voluntary Liquidation Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), Advantage Alpha VI Fund Ltd. (the “Company”) is in Dissolution. The date of commencement of the Dissolution is the 10th day of September, 2018. Domingos Carlos Howorth Barbosa da Cruz is the Liquidator and can be contacted at Rua Coelho da Rocha no. 27, 4. ° Dto, 1250- 087 Lisboa, Portugal.

All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before the 10th day of October, 2018.

Please do not apply if you do not possess the minimum qualifications Only successful candidates who are short-listed will be contacted Submission deadline is: Friday, September 21, 2018 Submit resume to peter@pghrbahamas.com

Domingos Carlos Howorth Barbosa da Cruz Liquidator

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,948.05 | CHG -5.62 | %CHG -0.29 | YTD -115.52 | YTD% -5.60 52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 2.50 8.55 6.09 3.49 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.95 17.43 9.09 4.45 1.01 0.18 2.50 9.17 6.15 3.65 12.40 2.80 1.75 7.65 6.21 13.00 6.31 3.65 13.01

CLOSE 3.95 17.43 9.09 4.45 1.01 0.18 2.55 9.17 6.15 3.60 12.40 2.83 1.75 7.61 6.21 13.00 6.31 3.65 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.00 -0.05 0.00 0.03 0.00 -0.04 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.63 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 2,000

3,250 20,000

2,650

VOLUME

EPS$ 0.268 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.441 0.171 0.627 0.102 0.231 0.000 0.670 0.679 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.280 0.500 0.200 0.120 0.590

P/E 14.7 18.7 N/M 14.0 N/M N/M -2.6 13.1 13.9 21.1 19.8 27.7 7.6 N/M 9.3 19.1 8.8 13.2 20.6

YIELD 2.53% 6.48% 0.00% 5.17% 0.00% 5.56% 0.00% 7.74% 3.58% 3.33% 5.00% 2.12% 4.00% 1.10% 4.51% 3.85% 3.17% 3.29% 4.53%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.57 1.70 1.65 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.51 1.62 1.59 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.17 4.14 2.01 180.30 155.10 1.57 1.68 1.65 1.09 7.36 8.53 6.50 11.41 11.66 10.41 9.93 8.45 11.20

YTD% 12 MTH% 2.24% 4.15% 0.03% 4.59% 1.23% 2.26% 0.90% 3.44% 1.11% 6.05% 2.50% 4.38% -0.75% 3.51% 1.75% 4.07% -0.52% 1.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 31-Jul-2018 31-Jul-2018 27-Jul-2018 30-Jun-2018 30-Jun-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, LONZY DAKON HARTELY FORBES/LONCEY DARKON HARTLEY STRACHAN, of Millenium Gardens, New Providence, Bahamas, intend to change my name to LONCEY DALTON HARTLEY STRACHAN. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

INTENT TO CHANGE NAME BY DEED POLL

BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.46 1.26 0.19 3.92 9.17 6.60 5.30 12.50 2.71 1.77 8.21 6.21 13.00 7.00 4.50 13.50

net worth. He added at the time: “Unfortunately, IPSI is currently unable to pay the agreed amount of $60,000 as set out above.

It is seeking financial assistance to fund the settlement. At this time IPSI is not able to confirm a date for payment.”

Mr Sumner declined to comment when contacted

by Tribune Business, citing the confidentiality clause in the Securities Commission settlement that prevents either party from speaking publicly about the deal and its terms.

The settlement agreement, though, noted that while Mr Sumner “does not agree with the premise for the Commission’s sanctions”, he accepted his responsibility as a director for what had occurred at Montaque Capital Partners.

“The defendant further noted that, to expedite the conclusion of this matter, he will accept ‘without prejudice’ sanctions imposed by the Commission. The defendant has also declared his current inability to pay penalties in full,” it added.

“During the material times and notwithstanding the defendant’s [Mr Bethel] explanation, the defendant’s actions violated the securities laws and were contrary to the public interest. The defendant’s conduct was both detrimental and prejudicial to the interests of Montaque and its clients.”

PUBLIC NOTICE

MARKET REPORT TUESDAY, 11 SEPTEMBER 2018

appealed after six. He has to pay a collective $150,000 fine, representing $50,000 for each of the three infractions identified by the Securities Commission improper record-keeping/ accounting; the mingling of client funds with those of the company’s; and “conflict of interest”.

The regulator’s issues with Mr Sumner centred on IPSI, which was 16 percent owned by Montaque Capital Partners, and the related party transactions through the broker/dealer that resulted in the “triple play” provider owing it some $178,000.

“In the case of the defendant [Mr Sumner], a company called IP Solutions International, for which at all material times the defendant acted as its president and chief executive, and which was also an investee company of Montaque, was indebted to Montaque in the amount of $178,000,” the settlement agreement stated.

It added that IPSI had agreed to pay Montaque Capital Partners’ liquidators, accountants Ed Rahming and Kenneth Krys, $60,000 - around onethird of what is owed - to settle the debt and also purchase the 16 percent equity stake back from the insolvent broker/dealer.

These terms were adopted into the settlement agreement, with Mr Sumner in a February 25, 2016, affidavit describing IPSI as having zero

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

The public is hereby advised that I, PATRICIA REZELL THOMPSON BOWE of #15E Leeward East, in the Eastern District of the Island of New Providence, The Bahamas intend to change my name to REZELL PATRICIA THOMPSON BOWE. If there are any objections to the change of name by deed poll, you may write such objections to the offices of Mortimer & Co., Post Office Box N-7535, Nassau, N. P., The Bahamas no later than thirty (30) days after the date of the publication of this notice.

Job opening Needed immediately full-time experience pharmacist to work in Medical facility.

Must have a good employment background, possess a Bachelors degree in pharmacy with strong customer service and more than two years experience working as a pharmacist. Must be licensed in the Commonwealth of the Bahamas. For immediate consideration, please send your resume to: physicians Alliance Limited p.o. box ee-17022 #31 Collins Avenue nassau, bahamas email: jobs@physiciansalliancelimited.com

ARABESQUE LTD. (Company number 54,040 B) An International Business Company (In Voluntary Liquidation) Pursuant to Section 138 of the International Business Companies Act, 2000 notice is hereby given that the voluntary winding-up and dissolution of the Company commenced on the 10th day of September, 2018 and that Pine Limited of Devonshire House, Queen Street, P.O. Box N-3918 Nassau, Bahamas has been appointed Liquidator.

Dated this 10th day of September, 2018 Pine Limited Liquidator

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

THE TRIBUNE

Wednesday, September 12, 2018, PAGE 7

Sebas: We require 10-12 months for 5% patron levy FROM PAGE ONE shops had “no choice” but to resort to legal action to block the Government’s demand for what the industry believes is an unreasonably early introduction of the five percent tax.

He referred to a September 7, 2018, letter from Tony Plaskow, commercial director of UK-based Black Cow Technology, an 18-year gaming software developer, as justifying his assertion that ten to 12 months after the issuance of guidance notes by the Gaming Board is “a reasonable implementation date” for the five percent patron tax.

Mr Plaskow, in a missive also sent to the Gaming Board, said “a completely new set of processes” has to be “developed, tested, implemented and certified” to permit the levying, collection and reporting of the tax on patron deposits and over-the-counter (OTC) lottery ticket sales.

Warning about the difficulties caused by the absence of uniform guidance notes on the implementation, he added: “On a raw data basis, just the ‘physical’ process of calculating and adding the tax to the transaction, creating a database of all the taxes and being able to report on these is a challenging and in-depth process.”

Mr Plaskow broke the process for implementing the five percent patron tax into two phases - online and back office operations, and then for the physical web shop locations. He estimated that the former would take four to six months, and the second some six months - making for a total of ten to 12 months.

As a result, Mr Bastian argued: “In the circumstances, a reasonable period of time to complete the implementation of the

stamp tax on the online platform of Playtech [Island Luck] is 10-12 months after the issuance of guidance notes from the Gaming Board/Ministry of Finance.”

Such a potential timeline will likely send a chill through the Ministry of Finance, as it would mean missing out on potentially $20m in revenue - the sum the Government has budgeted to collect from the five percent patron tax in the 2018-2019 fiscal year.

“Since the regularisation of the gaming house industry, the applicant [Island Luck] has had its platform certified five times,” Mr Bastian alleged. “In each instance, the applicant had to make several modifications to its proprietary system, all of which took several months to develop, test and then finally submit to an independent laboratory for certification.

“This process is very tedious and must be done under strict development guidelines to avoid irreversible damage in the form of system calculations, errors in reporting and significant financial liabilities if the platform were to develop bugs during coding.”

Mr Bastian alleged that the eight steps to modifying gaming software and platforms included an analysis of the necessary requirements; design and layout; software coding; internal testing and quality assurance; independent laboratory testing; web shop staff training; on-site testing and, finally, approval by the Gaming Board.

Based on Island Luck’s eight-year history of developing and upgrading its electronic gaming platform, Mr Bastian said the certification stage - testing by independent laboratories - could take as long as 147 days by itself.

The two web shop industry Judicial Reviews are

challenging the alleged “arbitrary” date set by the Ministry of Finance for the five percent levy’s introduction on customer deposits and over-the-counter (OTC) lottery sales.

Central to their case is the claim that web shops were given insufficient time to certify their games and technology platforms to accommodate the five percent levy, with the offering of any uncertified games violating the sector’s governing law - the Gaming Act and its regulations - and potentially “eroding public confidence” in the sector.

The planned September 1 introduction of the five percent levy, which had already been pushed back twice, now awaits a further Supreme Court hearing on October 5.

Mr Bastian, meanwhile, alleged that Island Luck was already modifying its platform when the new five percent patron tax came in a development that further complicated its upgrade efforts, especially in the absence of government guidance for programmers.

“At this juncture, it is abundantly clear to the applicant’s senior management that the update was technically impossible and unreasonable in the mandated timeframe and that, to ensure that the applicant adhere to the Gaming Act and regulations under which it is governed, the applicant has no choice but to seek relief from the court,” Mr Bastian alleged.

To advertise in The Tribune, contact 502-2394

Bahamas broker: We’ve addressed $120k fine woes FROM PAGE ONE three years ago. It made sense to settle at $120,000.

We are happy with the outcome.”

However, the four-page settlement agreement with the Securities Commission, dated August 30, 2018, said Swiss-America’s initial March 22 response to the findings of the regulator’s investigation was to describe the alleged breaches as “unfounded”. It also called for reductions in the penalties proposed by the capital markets and investment funds regulator.

Mr Gentile’s company subsequently met with the Securities Commission on July 25, 2018, and “agreed to accept sanctions imposed”.

Swiss-America Securities also submitted a letter five days’ later setting out how it planned to come into compliance and address its deficiencies.

“During May 2016 the Commission conducted an inspection for cause and discovered breaches further outlined in the report,” the settlement agreement said.

“The issues revealed in the report primarily concerned Swiss-America Securities’ operations and the failure to ensure full compliance with the provisions of the Act, including KYC (Know Your Customer) issues, maintenance of books and records, and failing to notify the Commission of material changes.”

The Securities Commission’s report was based on its examination of Swiss-America Securities’ records, and interviews with its employees. The regulator said the violations of Bahamian securities laws were “contrary to the public interest”, and that Mr Gentile’s company “accepts responsibility for its non-compliance”.

The fines were spread over ten failings, which included not verifying client accounts; not conducting KYC and risk monitoring of clients; failing to provide details on insurance coverage and an outsourcing agreement; and not notifying the Securities Commission of its name change and Mr Gentile’s

involvement as defendant in a criminal case in the US. That case was dismissed because it was time or “statute” barred. Mr Gentile has enjoyed a somewhat colourful stay in The Bahamas, with Tribune Business reporting in 2016 how he and his broker/ dealer, based in the Elizabeth on Bay Plaza on Bay Street, were allegedly used as “bait” by the Federal Bureau of Investigations (FBI) to help snare numerous international securities fraudsters.

Mr Gentile claimed that he and his Bahamian businesses were “forced” to play key roles in undercover “sting” operations targeting criminals earning millions of dollars from market manipulation scams.

Their participation even extended to the “bugging”, both by video and sound, of Swiss-America’s Bahamian head office in a successful bid to gain evidence against a Canadian fraudster who subsequently pleaded guilty to the charges against him.

The allegations were contained in documents filed with the New Jersey federal courts as part of Mr Gentile’s successful bid to have an eight-year old case against him dismissed.

The Swiss-America Securities principal alleged that US federal authorities have

resuscitated the case matter after he refused to continue acting as a “co-operating witness” or “undercover agent” for them.

He said he had been forced to spend almost four years in such a role, going “above and beyond” what was required of him in 2012 in return for supposedly having the reborn charges against him dropped back then.

Forced to act as a “co-operating witness”, Mr Gentile essentially alleged that he became “too good” in his new “job”, delivering evidence that resulted in numerous successful prosecutions, jail sentences and multi-million dollar fines against US targets.

As a result, he claimed the FBI and US federal prosecutors were reluctant to release him from this work, with his decision to walk away sparking the re-filing of charges against him.

Mr Gentile also attracted international media coverage after his Russian-born, model girlfriend, Kristina Kuchma, 24, in a fit of rage drove his Mercedes S400 hybrid into the pool at his Ocean Club home after he ended their 18-month relationship by text and allegedly reneged on a promise to provide $50,000 for one of her business ventures.

Legal Notice

NOTICE Pursuant to the provisions of Section 138 (8) of the International Business Companies Act (as amended), NOTICE is hereby given that Island International Holdings Ltd. has been dissolved and has been struck from the Register with effect from 13th August, 2018.

Lynn Kelly and Halson Ferguson LIQUIDATORS c/o EFG Bank & Trust (Bahamas) Ltd Goodman’s Bay Corporate Centre, 3rd Floor West Bay Street and Sea View Drive P.O. Box CB 10956 Nassau, Bahamas

PAGE 8, Wednesday, September 12, 2018

THE TRIBUNE

Apple expected to unveil bigger, pricier iPhone on Wednesday

CUSTOMERS buy the iPhone X at the Apple Store on New York’s Fifth Avenue. Apple is expected to unveil its biggest and most expensive iPhone today as part of a lineup of three new models aimed at widening the product’s appeal amid slowing sales growth.

Photo: Richard Drew/AP SAN FRANCISCO Associated Press APPLE is expected to unveil its biggest and most expensive iPhone today as part of a lineup of three new models aimed at widening the product’s appeal amid slowing sales growth.

Most of the buzz is swirling around a rumored iPhone that is supposed to boast a 6.5-inch OLED screen, up from 5.8 inches on the existing iPhone X. OLED is a step up from traditional LCD technology in offering a display without a backlight, so black is truly black rather than simply dark.

If the speculation pans out, the even-bigger iPhone would represent Apple’s attempt to feed consumers’ appetite for increasingly bigger screens as they rely on smartphones to watch and record video, as well as take photos

wherever they are.

The iPhone X, a dramatically redesigned model released last fall, got rid of the home button and introduced facial-recognition technology to unlock the device. It was the first mass-market smartphone to demand a $1,000 starting price. Although the iPhone X didn’t fulfill analysts’ lofty sales expectations, it fared well enough for Apple to up the ante with the bigger model, whose price is expected to unveil today.

Apple also is expected to release an iPhone with minor updates to last year’s $1,000 model and another version made of cheaper materials, including a 6.1inch LCD screen. Even so, the cheaper iPhone is still expected to sell for $650 to $750. The cheaper phone also is expected to lose the home button. Price cuts for older models, with the home button, are also likely.

Names for the new devices aren’t known.

The company may also announce a new smartwatch.

Apple didn’t comment ahead of today’s event, which is being held at its Cupertino, California, headquarters.

By making more expensive iPhones, Apple has been able to boost its profits despite waning demand as people upgrade phones less frequently. IPhones fetched an average price of $724 during the April-June period, a nearly 20 percent increase from a year earlier.

Worldwide smartphone sales grew just two percent during that period, according to the research firm Gartner Inc. During the second quarter, which is typically slow for Apple, China’s Huawei Technologies surpassed Apple as the second-largest seller of smartphones, based on Gartner’s calculations. Samsung remained in the lead.

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