Caribbean

MSR Case: Insiders Visit DC as Martinez Adds Deputy PM Hilaire to RICO Case, Deflects Financial Restitution Questions


During a one-hour interview on DBS Television, Philippe Martinez revealed that MSR Media would add St Lucia’s Deputy Prime Minister and Minister for Tourism, Ernest Hilaire, as a defendant in MSR’s RICO lawsuit.

Martinez also accused former St Kitts & Nevis CIU Head Les Khan of masterminding Galaxy’s alleged discounting scheme, discussed his Washington DC meeting with St Lucia CIP CEO Mc Claude Emmanuel, and dodged questions regarding financial compensation and his past.

The RICO suit story so far

In May, MSR Media filed a RICO suit in US Federal Court against Les Khan, Mc Claude Emmanuel, Ying Jin, Denzil Douglas, Timothy Harris, Faron Lawrence, Caribbean Galaxy, “and others,” alleging they engaged in a collusive racket related to the CIPs in Saint Kitts & Nevis and Saint Lucia.

MSR Media claims to possess evidence showing that the due diligence provider for Caribbean Galaxy’s prison project paid kickbacks to Ying Jin and that some Chinese nationals involved in money laundering obtained Kittitian citizenship using false identities.

The Saint Lucian government soon distanced itself from the lawsuit, stating that it relates to accusations against Caribbean Galaxy and individuals in Saint Kitts & Nevis and that Saint Lucia has “no business with Philippe Martinez.”

Caribbean Galaxy Real Estate Corporation has denied the allegations made by MSR Media in their RICO lawsuit, calling them “false accusations.”

Former Saint Kitts & Nevis Prime Minister and current Minister of Foreign Affairs, Dr. Denzil Douglas, also denied the allegations, calling them “ridiculously false” and “riddled with hearsay.”

“A Billion Dollars” for a “50 Million Project”

In the interview with DBS, Martinez alleges that the St Kitts & Nevis administration, run by former Prime Minister Dr. Timothy Harris, “gave to Galaxy 5,500 shares to build a jail that cost 50 million dollars, okay? That old contract was masterminded by Les Khan, who now is the CEO of Galaxy.”

According to Martinez, those shares would amount to US$1 billion, and he claims there is a “$950 million difference between the cost of the jail and the contract Galaxy was given and the money that they collected.”

He maintained that Galaxy had received the money but hadn’t built the jail and that “Galaxy was able to receive the money in China” because there was no escrow account in St Kitts & Nevis.

When asked about the evidence, Martinez claimed to “have the bank account, I have the contract for the sales agents sending the money directly to Galaxy.”

Talking to IMI, Martinez maintained that Galaxy has managed to collect the money without government control or any escrow account. He also claims that the government has no control over the funds and that he and his team have evidence to prove it.

He also told IMI that he “will share the evidence in US Federal Court, not in the media. This is not a media trial; this is a US one.”

Allegations Against Les Khan and Former St Kitts Administration

Martinez then claimed to have proof through recordings of Les Khan:

“I sat down with Les Khan, one of my associates, Lee Beesly, and the escrow promoter, Mr. Farron Lawrence, and I told Farron Lawrence we are going to confront Les Khan, and are you okay if we record him? And he said absolutely.”

Martinez said he has “recorded Les Khan several times” and that despite the defendants’ protestations of no wrongdoing, he “could end that whole thing right now by simply putting online every recording and video of Les Khan confessing of the entire corruption scheme and fraudulent system in the CBI program.”

Before the interviewer could ask him why he doesn’t post them, Martinez argued that he has chosen “the path of hiring some of the most prestigious lawyers in Washington DC and file a RICO lawsuit in US Federal Court because they have to be exposed and they have to pay for the damage that they made to my investors but also for the robbery that they’ve done to the citizens of the Caribbean with their passport money.”

Asked whether this should have been the government’s responsibility and whether his public airing of the issues is tarnishing the names of the countries, Martinez said he “waited 18 months, sent letters with my lawyers. We have evidence [of] criminality, corruption. […] But some of the people that are defendants in the RICO lawsuit are part of the administration.”

Martinez is trying to obtain a court order to subpoena the five corresponding banks. He claims to have received the transactions of two of the five banks and alleges that “Dr. Harris and Galaxy are in US court trying to block us from accessing the other three banks.”

He proclaimed that Harris’ and Galaxy’s defamation suit, which they filed against him earlier, was the reason he could obtain financial transactions.

“It’s the best thing that they’ve ever done to me,” Martinez said. “Because as soon as they’ve done that, my American lawyers – who are experts, they are top lawyers – said, how could they make such a strategic mistake?”

“We filed what’s called a 1782 in the United States,” he added, “and we were able to get bank transactions. Can you imagine? We have the bank transactions, every single one of them. Do you realize how scared they are right now? They know that because of this, the fraud is over.”

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It is important to note that while Martinez did claim to have proof to back up his allegations, he did not provide any concrete evidence during the interview.

Mr. Emmanuel goes to Washington

While Martinez has included the former Prime Minister of Saint Kitts & Nevis in his lawsuit, he has not taken legal action against Saint Lucian Prime Minister Philip J Pierre, against whom he indicates he harbors no ill will. But he is now expanding the lawsuit to include members of the Saint Lucian government as well.

Martinez alleged that MSR found out the Saint Lucian government “has given 13,000 units to Galaxy.” Later, in the same interview, he stated that the number was 14,000.

Questioned as to the source of this number, he revealed that “one member of the CIP of Saint Lucia came to see us in Washington DC secretly last week, okay? He told us the number.” He did not reveal who the person was.

Martinez claims that “since we filed the lawsuit, a lot of people are coming to see us in Washington DC because they’re scared.”

According to Martinez, the Citizenship by Investment Unit CEO, Mc Claude Emmanuel, was among those who reached out. Martinez claimed he and Emmanuel spoke to him on a Zoom call before later flying to Washington to meet Martinez at his lawyer’s office, where they showed Emmanuel the evidence they had.

The interviewer asked Martinez whether he had recordings of Emmanuel as part of his evidence deck and whether he showed them to him. Martinez responded that he did but said he was “not here to make the trial of Mr. Emmanuel. We have informed Mr. Emmanuel of something that he should be aware of.”

Martinez claims that Emmanuel’s had come to see him in Washington primarily because he wanted “to be out of this RICO lawsuit.”

Martinez stated that Emmanuel “explained how the board operates and that he’s not the decision maker and all that. […]We were able to understand who is the official who has allowed this thing to happen in Saint Lucia, which is the same scam that you have in St Kitts,” he said.

Martinez accused Deputy PM Hilaire of being involved in the alleged “scam,” which “could not have happened without the strong collaboration of someone, which we listed before as a co-conspirator. But now that we have strong confirmation of his exact role, we will move him as a defendant, Mr. Hilaire, and others we’re looking at.”

Regarding the Saint Lucian PM, Martinez stated, “PM Pierre is not at all involved in that. That’s what Mr. Emmanuel explained to us.”

Martinez insisted that his team “knew everything already, but we now have more information. Other people are coming to Washington next week, you know, so we are going to amend the lawsuit.”

Pressed by the interviewer as to whether Emmanuel’s visit had been a catalyst in the listing of Hilaire as a defendant, Martinez said, “I don’t want to put Mr Emmanuel on the spot.” Martinez maintained that he already “knew the role of Hilaire and his relationship with Galaxy and Les Khan and the nature of the con we knew that already.”

IMI has contacted Emmanuel for his comments.

Martinez won’t say how much he hopes to win

MSR’s RICO lawsuit is a civil suit, not a criminal one, meaning that any accountability will come in the form of financial compensation for the plaintiff.

In RICO lawsuits, courts can award plaintiffs up to triple damages, attorney fees, and litigation costs. When the interviewer asked Martinez how much he claims to have lost due to the alleged bad actors in the CIP, Martinez said: “I’m not going into that. I’m not going into that. Okay?” He then redirected the discussion to the Canelles Resort and the infrastructure project.

When the interviewer persisted with the question, quizzing Martinez on how accountability would come and what dollar value he put on any alleged damages, Martinez maintained that he would “love to answer your question, but I’m not at the liberty to answer your question.”

Asked whether he had received letters of support for his endeavor, and he replied, “I don’t receive support calls. But I can tell you what I receive: People are scared and I have sales agents coming to Washington, secretly, giving us documents.”

The interviewer also asked Martinez about the accusations he faces of “colluding with opposition parties, politicians, and other actors to bring the destruction of Caribbean Galaxy and ultimately tarnishing the reputations and the image of both Saint Lucia and Saint Kitts Nevis” to which he replied, “It’s pure political bullshit that doesn’t even need to be dignified.”

The interviewer then brought up that Martinez had complained of being labeled a labeled a “fraudster” by multiple voices in the region, and asked him about his run-ins with the law, to which he responded: “Wait, wait, wait, wait. Let’s be very careful; I had an issue when I was 21. I have since then obtained my green card in the US, and I am a resident of the US. I’ve produced 70 movies.”

He then used the actions of one of the accused in his RICO lawsuit to emphasize his point: “Instead of people calling me a fraudster, and I understand that Mr. Harris does that, they should be very careful. You know, he approved me for the CBI program.”

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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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