Caribbean

Galaxy Denies MSR’s Allegations; Ex-PM Douglas Brands Them “Baseless”


Caribbean Galaxy Real Estate Corporation has vowed to defend its name in the wake of what it calls “false accusations” leveled against it by movie producer Philippe Martinez and his companies, MSR Media SKN Ltd., MSR Hotels & Co. Ltd., and MSR Media International, LLC (collectively, “MSR”).

MSR filed a RICO lawsuit on May 23rd, 2024, alleging that Caribbean Galaxy acted improperly and illegally in the citizenship by investment programs (CIPs) of Saint Kitts & Nevis and Saint Lucia.

“Appalled by the False Accusations”

In a statement, Caribbean Galaxy emphasized its history as a leading CBI real estate developer in the Caribbean, having built the Ramada Hotel in Saint Kitts and raised capital for the modern Saint Kitts Correctional Facility, commonly known as the “prison project.” The company stated that it has “provided hundreds of millions of dollars in revenue to the Government of Saint Kitts and Nevis” through these projects.

Caribbean Galaxy also highlighted its involvement in Saint Lucia, where the former administration approved its projects for the CIP in 2018 and where it began construction of the Dreams Resort in early 2023.

The company says it plans to follow this with the Zoetry Resort and Residences and that it is also participating in Saint Lucia’s newly announced “Infrastructure Option” under the CBI program.

The company categorically denied any wrongdoing, stating it has “always followed the law in Saint Kitts & Nevis, and Saint Lucia, and all its business dealings follow industry practices.”

Galaxy wrote that it was “appalled by the false accusations of Philippe Martinez, suggesting that our company has engaged in corrupt practices with politicians in Saint Kitts & Nevis and Saint Lucia.”

The company stated it “has no relationship or business dealings with Philippe Martinez” and that its “business dealings in the countries where we are approved as a developer has [sic] been in full accordance with the laws of those countries.” It also emphasized that it takes “serious offense to the accusations made by Mr. Martinez, which seeks [sic] to destroy the reputation and goodwill of our company.”

The lawsuit follows a series of public statements from Martinez in November 2023, in which he accused former Saint Kitts & Nevis Prime Minister Timothy Harris, Kittitian Minister of Foreign Affairs Dr. Denzil Douglas, former CIU head Les Khan, and Caribbean Galaxy executive Ying Jin, among others, of engaging in an “international scam” related to the discounting of CBI real estate shares.

Martinez claims to have evidence of “numerous potential violations of United States laws, including fraud, money laundering, tax evasion, and corruption.”

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In response to these allegations, Caribbean Galaxy filed a defamation lawsuit against Martinez and his “co-conspirators” in Saint Kitts in November 2023. The company has now reiterated its commitment to defending itself against the latest allegations, stating that it “will not be intimidated or bullied by the selfish actions of individuals who have found themselves lacking in achieving their investments.”

Caribbean Galaxy’s response comes ten days after St Lucia’s government distanced itself from Martinez by publishing a notice titled We Have No Business With Philippe Martinez.

“Riddled With Hearsay”

Former Saint Kitts & Nevis Prime Minister and current Minister of Foreign Affairs, Dr. Denzil Douglas, who is also a defendant in MSR’s lawsuit, issued a separate statement denying the allegations against him.

Douglas called the accusations “ridiculously false” and “riddled with hearsay” and characterized the allegations as “baseless, malicious, and deliberate attacks, intending to destroy my reputation, character, and legacy.”

He expressed confidence that, if given the opportunity to prove the allegations in court, “they will prove to be untrue, and my name will be vindicated.”

Dr. Douglas emphasized his 35 years of public service, during which he said he had “upheld the highest standards of integrity and transparency.”

He assured the people of Saint Kitts & Nevis that “justice will prevail and that the mischief makers along with their accomplices on the ground here in Saint Kitts & Nevis will not triumph in their long-held obsession to distort the history of this country and the legacy that I built.”

MSR’s lawsuit is the latest development in a series of controversies surrounding Caribbean CBI programs. In March 2024, the Prime Ministers of Antigua & Barbuda, Dominica, Grenada, and Saint Kitts & Nevis signed a Memorandum of Agreement (MoA) aimed at harmonizing minimum investment thresholds, enhancing information sharing and transparency, and establishing common standards for agent regulation and marketing.

Saint Lucia initially did not sign the MoA alongside the rest of its Caribbean counterparts, with most observers suggesting this related to the country’s commitment to Caribbean Galaxy. However, St Lucia recently confirmed it would be signing the MoA and even proposed additional measures to broaden its scope.

As the legal proceedings unfold, the outcome of MSR’s lawsuit and the competing defamation claim filed by Caribbean Galaxy could have significant implications for the future of Caribbean CBI programs and the reputations of those involved, especially now that the several regional prime ministers are officially stating they are prepared to revoke citizenship from anyone who obtained it through fraudulent means.

Both Caribbean Galaxy and Dr. Douglas have vowed to vigorously defend themselves against what they characterize as false and malicious allegations, while MSR maintains that it has evidence to support its claims of fraud and corruption.

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Ahmad Abbas AdministratorAuthorSubscriberParticipant
Director of Content Services , Investment Migration Insider

Ahmad Abbas is Director of Content Services at Investment Migration Insider and an 8-year veteran of the investment migration industry.

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