‘Baseless’: Bahamas broker chief blasts $20m sanctions demands
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BAHAMIAN broker/ dealer’s principal yesterday slammed as “baseless” demands that he and his now-defunct company pay more than $20m in financial sanctions for violating US securities laws.
By NEIL HARTNELL Tribune Business Editor
A BAHAMIAN realtor yesterday disclosed his firm expects to beat 2023’s sales volumes after the New Providence home market’s total contracted deals hit a two-year high during this year’s third quarter.
David Morley, Morley Realty’s broker/owner, told Tribune Business that the Bahamian real estate market remains “very strong and healthy” despite having come down off its immediate post-COVID peak with the increased inventory of properties for sale still matched by robust buyer demand. Forecasting that these trends will persist over the near-term, he added that the industry “is setting itself up for being a good market for at least another year” through 2025 barring any unforeseen shocks to either the Bahamian or global economies.
Mr Morley, affirming that “we don’t see 2025 dropping off at all”, spoke out after his firm released its 2024 third quarter market analysis - drawing on data from the Bahamas Real Estate Association’s (BREA) Multiple Listing System (MLS) - which concluded those three months represented “a period of adjustment” featuring still-high inventory levels and relatively strong buyer demand.
“In the 2024 third quarter, the real estate market in The Bahamas continued to evolve, showing a mix of stability and change across major island markets. Inventory growth persisted, driven by increases in New Listings, but
Guy Gentile, head of MintBroker International, which was placed into full liquidation by the Bahamian Supreme Court in December 2021, accused the US Securities & Exchange Commission (SEC) of persecuting him and “perpetuating lies” after it urged the south Florida federal court to order that he “disgorge” prior profits as well as pay a combination of pre-judgment interest and penalties.
The US capital markets regulator, in court filings last week, argued that the heavy punishment was warranted after a ten-day jury trial this summer found Mr Gentile and his former Nassau-based brokerage, which operated
out of the Elizabeth on Bay plaza on Bay Street, breached US securities laws by actively soliciting American clients when it was an unregistered operator and thus not legally able to do so.
The SEC, in documents obtained by Tribune Business also called on the Florida court to permanently bar Mr Gentile from “future violations” of the same laws. Not surprisingly, the former Mintbroker chief yesterday take the opposite view, signalling that he intends to appeal the jury’s verdict although no appeal currently lies on the court docket based on this newspaper’s research.
He also asserted that the SEC’s alleged persecution, which he stated has lasted for the better part of two decades, have “ruined my life and finances” and effectively left him penniless. Disclosing that his US attorneys are now representing him for free, Mr Gentile added that the constant legal battles have taken a toll on his health as he argued he is unlikely to “receive fair treatment” in this particular case.
“For over two decades the SEC has been trying to punish me for an alleged pump-and-dump scheme from 2008,” Mr Gentile said in an e-mail responding to
Tribune Business inquiries.
“They initially sought $18m but lost three times. When they couldn’t win in New Jersey federal court, they shopped this case to a new Florida court which seems sympathetic to the SEC’s cause, disregarding my constitutional protections.
“The $20.15m they’re asking for is baseless,” he added of the SEC’s financial sanctions demand, “as the
Customs union awaits poll amid strike threat
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
SEVERAL union leaders last night threatened potential strike action as the Bahamas Customs, Immigration and Allied Workers Union (BICAWU) confirmed it will be taking such a vote on October 30.
Deron Brooks, the Bahamas Customs Immigration
& Allied Workers Union (BCIAWU) president, told the ‘Enough is Enough’ rally held by the Trades Union Congress (TUC) that his members have grievances over overtime and having to use their personal vehicle for work matters.
Asserting that they are not receiving overtime and transportation payments in a timely manner, he reiterated that the union has taken
the Government “to court to get a Judicial Review to determine the legality of hiring public officers, specifically Immigration officers, on a contract”. He added that TUC president, Obie Ferguson, encouraged him to file a trade dispute.
“So on Wednesday, October 30, our union is going to the poll to vote for a strike certificate,” Mr Brooks said. “Now, we’ve been reasonable.
We’ve always been reasonable. Our union at one time had two strike certificates. So we’re very responsible in our dealings. We don’t do things without good legal advice. We don’t do things to hurt the country, but we got to do what we have to do.” Mr Brooks previously warned that the union may initiate legal action over the
Moody’s praises fiscal uptick but surplus, revenue doubts
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
MOODY’S yesterday praised the Government’s “effective fiscal management” in slashing its annual fiscal deficits but cast doubts over it will hit its 25 percent revenue-to-GDP ratio target.
The credit rating agency, in its latest update which maintained a ‘B1’ rating on The Bahamas’ sovereign along with a ‘stable’ outlook, thus indicating this nation is unlikely to suffer a further downgrade to its creditworthiness over the next 12 months, backed the Davis administration’s forecast that it is on target to deliver a “steady fiscal
surplus” from 2025-2026 onwards.
If achieved, that would ensure The Bahamas enjoys its first annual Budget surplus, meaning the Government’s total revenues exceed its spending, since Independence some 51 years ago. However, Moody’s, while not explicitly saying so, appeared to differ with both the magnitude of the surplus that will be achieved as well as the Government’s prospects of hitting its revenue-to-GDP target. For the credit rating agency is forecasting that this “steady surplus” will be equivalent to 0.8 percent of Bahamian gross
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
amid the latter’s call for it to be reimbursed over hiring a private technician. Sheldon Johnson, manager of Glowell Motel, told Tribune Business the concern was less about recovering the $180 spent on hiring the technician to solve its Internet outage and more about
bigger companies “taking advantage of these smaller people”.
“And I thought it was like David going up against Goliath,” Mr Johnson said.
“The only difference is in this case, David didn’t win. But I feel as if the service that we got, first of all, they didn’t come through. They never did once take the blame.”
Mr Johnson said the motel began experiencing Internet connectivity issues on July 20-21, and he reached out to Cable Bahamas for a technician to solve the problem. He said multiple Cable Bahamas
DAVID MORLEY
GUY GENTILE
DPM: TOURISM ‘FULLY ENGAGED’ TO DRIVE CRUISE VISITOR SPEND
By FAY SIMMONS
THE deputy prime minister yesterday said the Government agencies responsible for tourism are “fully engaged” to drive greater visitor spending after it was revealed that per person outlays have fallen post-COVID.
Chester Cooper, also minister responsible for tourism, investments and aviation, said the findings of a study commissioned by the Florida-Caribbean Cruise Association (FCCA), which represents the major cruise lines such as Carnival and Royal Caribbean, were “not new news” in terms of the need for The Bahamas to develop innovative, fresh activities for cruise passengers to while in port.
The study, based on passenger and crew surveys and conducted on the FCCA’s behalf by Business Research and Economic Advisors (BREA), disclosed that almost 20 percent or one in five cruise visitors never left the ship when docked in
The Bahamas. And, when it came to cruise ship crew, some 70 percent also remained on board for the duration of their visit.
However, of more concern to The Bahamas is the report’s revelation that per capita cruise passenger and crew spending in this nation have both declined in the six years since the last FCCA survey was conducted pre-COVID in 2018. Passenger expenditure per person fell by 8 percent, or more than $11, from an average $131.95 in 2018 to $120.93 for the 12 months to end-April 2024.
Responding to the revelation, Mr Cooper said several initiatives have been launched through the Tourism Development Corporation (TDC) to create new experiences and encourage visitor spending.
“It’s not new news that we have been encouraging more and more of our passengers who arrive in Nassau to come off the ship and to support local vendors, so much so that we have several active initiatives through the Tourism Development Corporation to create new tours, new experiences and
Bahamian credit union membership over 50k
BAHAMIAN credit
unions have amassed more than 50,000 combined members and some $643m in assets, it was disclosed, as they joined a global celebration of the industry’s role.
Local credit unions teamed with their worldwide counterparts for International Credit Union Day (ICU Day), which highlights the role these cooperative financial institutions play in driving financial inclusion and empowering their members.
This year’s theme, ‘One world through co-operative finance’, focused on the ability of credit unions to unite communities through democratic, member-owned financial services that prioritise people over profit.
Now in its 76th year, International Credit Union Day celebrates the achievements of more than 74,634 credit unions and cooperative financial institutions worldwide, which serve over 411 million members.
The Bahamas’ movement has six active credit unions - the National Workers Cooperative Credit Union (NWCCU); Public Workers Co- operative Credit Union (PWCCU); Bahama Islands Co-operative Credit Union (BICCU); Grand Bahama Co-operative Credit Union (GBCCU); Teachers and Salaried Workers Cooperative Credit Union (TSWCCU); and Bahamas Law Enforcement Co-operative Credit Union (BLECCU). Bahamian credit unions marked the day with live radio broadcasts and community engagement; free health screenings, such as blood pressure checks
and glucose testing; and reduced membership fees for that day only.
Theresa Deleveaux, president of The Bahamas Co-operative League said: “This year’s International Credit Union Day celebration highlights our unwavering commitment to empowering individuals and families through accessible financial services. Together, we are building a future where everyone has the resources they need to thrive.”
Hally Haynes, president of the Caribbean Confederation of Credit Unions (CCCU), emphasised the importance of preserving the tax-exempt status of credit unions and advocating for fair regulations that recognise their unique, notfor-profit structure.
He also called for credit unions to have a presence in national and regional decision-making bodies, such as CARICOM, where their role in promoting financial and social well-being can be advanced.
“Now is the time to take action to protect the credit union ethos,” Mr Haynes stated. “We must continue to shape the future of the credit union movement to ensure it remains a force for positive change in our financial systems and communities.”
Credit unions operate as not-for-profit co-operatives, focusing on members rather than profits. With 217 credit unions across 18 countries, the Caribbean movement serves 2.8 million members and holds assets of over $10bn. Globally, their total assets exceed $3.7trn spread across 104 countries.
new opportunities for our cruise passengers to come onshore,” said Mr Cooper.
“We have been fully engaged to encourage even greater spending. We believe that once we create more opportunities, more things for our guests to do, that they will spend more. They will spend more time on shore, and I believe we will see a natural uptick in the overall average spend.”
Mr Cooper said the TDC has launched Street Smart 242, an app that shows activities around Nassau, along with a ‘smart city’ initiative to give visitors free or low-cost WiFi in the downtown area. He added that encouraging passengers to leave the ship and spend has been a decadeslong problem that the Government is working to solve and called for more entrepreneurs to enter the tourism industry.
“The Tourism Development Corporation is actively looking to see how we could enhance the product. Encourage more of our guests to spend more, encourage more of our guests to come off the ships, and we are tackling a decades old issue. We’re doing
something about it right now,” said Mr Cooper.
“I have always said consistently that one of the biggest complaints of our guests is not enough to do, so whilst we do our part, we are calling for entrepreneurs to participate in downtown Nassau, to get involved, to create more restaurants, more entertainment opportunities, more experiences and more tours. You have the full backing of the agencies of government, including the Tourism Development Corporation, the Small Business Development Centre and the BAIC.”
Mr Cooper said that while some new entrepreneurs are entering the tourism space, there is a need for more as Nassau is attracting over 30,000 cruise passengers on some days. “We are seeing some progress in terms of new entrepreneurs. We are getting more applications for grants. People are answering the call, but we need more,” he added.
“We are receiving upwards of 30,000 passengers a day. We are seeing some bright lights in terms of new entrepreneurial
‘DEPLORABLE’ BERRY
A CABINET minister has pledged to rapidly address the “deplorable state” of the Berry Islands’ landfill, which has been a long-standing concerns for residents.
Vaughn Miller, minister of the environment and natural resources, speaking at a recent Town Hall meeting at Dean’s Community Centre in Bullocks Harbour, said “the most precious resource of The Bahamas is our people” as he voiced concern for residents’ welfare.
Taking responsibility for his ministry’s role in addressing the landfill’s environmental and health woes, he said a directive will be given for the
opportunities in the tourism space. We can bring the guests, but it takes entrepreneurs to extract the money out of their pockets that they bring.
“They bring spending money, and they’re looking for things to spend it on, and this has to be a private sector-driven initiative, whilst the government facilitates the process of lifting up entrepreneurs and supporting them in every way we can.”
Mr Cooper added that The Bahamas is still on track to beat last year’s record tourism year arrivals numbers despite “some bumps in the road”. He said arrivals were affected by several storms that made landfall in the US in September and October, but remains confident that once the hurricane season ends this month persons will resume travel.
“We have a very positive forecast. The forecast still is that we will beat the record from last year,” said Mr Cooper. “We’ve had some bumps in the road during the months of September and October. Specifically, we’ve had Helene that impacted Georgia, and
we’ve had Oscar recently that would have interrupted some flow of traffic through The Bahamas.
“Milton also impacted, in a very serious way, Central Florida. Florida is our core market. We are still assessing the overall impact. We are offering our support in these markets that’s so important to us, and once things settle down and people are back on their feet, we know that they will travel again.”
Mr Cooper added that due to the close proximity, and having several flight options available, air traffic to The Bahamas should be strong in November and December.
“We are very strong with direct non-stop service from more than 25 cities across North America, and we expect all of these pieces together are going to help us to end the year strong,” said Mr Cooper. “We’re expecting a very strong November and December, and we consider September and October a wash really, but we’re coming back strong, I’m sure, right after the hurricane season.”
ISLANDS LANDFILL TO BE OVERHAULED
Department of Environmental Health Services (DEHS) to deploy a team that will evaluate the situation and submit
recommendations that can be implemented quickly.
Mr Miller said he anticipated the total dismantling and clean-up of the existing
landfill, including the roads leading in to the site, and the reconstruction and relocation of the facility. He added that several winter residents have agreed to partner with the local government authorities help dispose of waste in an environmentally sustainable manner.
The meeting, held on October 17, 2024, included remarks from Leonardo Lightbourne, MP for North Andros and the Berry Islands; Michael Darville, minister of health and wellness; and Jobeth Coleby-Davis, minister of energy and transport. Mr Miller said his ministry is dedicated to cleaning up The Bahamas.
HON. Vaughn P. Miller, Minister of the Environment and Natural Resources address the Berry Island Town Hall Meeting attendees and local residents. Photo:Samantha Black
DPM hails new recycling plant
By FAY SIMMONS Tribune Business Reporter
THE deputy prime minister yesterday hailed the groundbreaking of a new recycling plant as critical to transforming The Bahamas into a sustainable destination desired by 75 percent of its tourist visitors.
Chester Cooper, also minister responsible for tourism, investments and aviation, speaking at Eden Recycling and Manufacturing’s facility at Gladstone Road Industrial Park on Firetrail Road West, said: “Sustainable tourism is critical in our mandate moving forward. It is a part of our product, and it’s a part of protecting our destination.”
“I reference sustainable tourism because 75 percent of our tourists say that sustainability is important to them, and that The Bahamas has the natural environment to promote
sustainability and sustainable tourism. So, what Eden is doing through this cutting-edge project supports our efforts but also contributes to the advancement of a sustainable destination and a sustainable environment.”
Andrew McFall, Eden Recycling and Manufacturing’s chairman and chief executive, said the recycling plant will change the way that The Bahamas manages waste. He added that recycling plastic waste will allow this nation to reduce plastic imports while benefiting the environment.
“We are witnessing a pivotal step in our nation’s environmental and economic future,” said Mr McFall. “This is more than a construction project for us. It is the physical realisation of a vision that will reshape how we, as a country, confront one of our greatest challenges of our time - that of plastic pollution. “Our mission is clear: To transform how we manage
waste in this country by offering innovative local recycling solutions that will reduce environmental impact, lessen our dependency on imports and create new jobs and skill sets within our community.”
Mr McFall said the recycling plant will collect plastic waste from the tourism, agriculture and education sectors, then move to manufacturing plastic products. “This facility promises to be fully equipped with state-of-theart technology, and initially be focused on handling plastic waste from major sectors such as tourism, agriculture and education,” said Mr McFall. “As we grow, we will expand into manufacturing eco-friendly plastic products, helping to reduce single based plastics and offering sustainable alternatives for commercial use.” Although recycling will be the primary focus of the plant, it will also
manufacture electrical and plumbing pipes and fixtures.
“One of the other areas of initial focus, which we will highlight, is the manufacturing of electrical and plumbing pipes and fixtures,” said Mr McFall. “It is our inherent belief that manufacturing should be one of the ways forward for economic growth for the future of our country and our economy.
“We are committed to doing our part, and we believe that manufacturing will offer the means to reduce prices to the retailing public, if done correctly. It is our desire to turn this facility into a major contributor to our economy. By producing plastic products locally we will reduce our reliance on imports.”
Mr Cooper voiced hope that the recycling plant will expand its services to the Family Islands either by building plants or launching collection depots to collect plastic waste.
“A few years ago, the Government of the Bahamas banned single use plastics, and I believe this created an overall awareness for children and adults across the country that plastics are generally bad for our ecosystem,” said Mr Cooper. “I’m delighted that, by recycling, you are becoming a part of the solution.
Having identified the problem, more recycling will ensure that there are less
plastics in the environment. I hope that you will begin this process of recycling here, but that you will help to drive this in Exuma, Grand Bahama, and all of the other islands of The Bahamas.
“I hope that, once you establish yourself, you will have depots all across the islands to help to collect your raw material. And by doing so, you will be doing exceedingly good.”
NOTICE is hereby given that PAULETTE McPHEE, of P.O. Box CR-54111, Lou Adderley Estate, Alcuin Lane, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Realtor to beat 2023 sales as Nassau deals hit two-year high
some regions showed signs of moderation,” Morley Realty’s report found.
“While new listings rose year-over-year across most islands, the quarter-overquarter trends varied, suggesting a shift in supply and demand dynamics as markets adapt to higher inventory levels. The rise in new listings in the 2024 third quarter pointed to growing competition among sellers, with notable
growth seen in most island markets.
“However, some regions, like Abaco and Grand Bahama, showed signs of stabilisation with the pace of new inventory growth slowing. This could indicate that the surge in listings observed earlier in the year is beginning to level off.”
As for buyer demand, Morley Realty said the MLS data showed contracted home sales on New Providence “increased both year-over-year and
quarter-over-quarter, reaching the highest volume seen in the past eight quarters” or two years. The 101 contracted home sales for the three months to end-September 2024 represented 29.5 percent and 32.9 percent year-over-year, and quarter-over-quarter, jumps respectively.
Completed home sales on New Providence were described as “fairly consistent within the normal market range” at 56 for the 2024 fourth quarter, despite a 26.3 percent fall compared to the same period in 2023. Land sales on the island, though, rose by 48.1 percent year-over-year to 40 for the 2024 third quarter.
“Demand across the islands was mixed, with Nassau & Paradise Island experiencing a marked increase in contracted and completed sales for both homes and land, signalling strong interest,” Morley Realty’s said in its analysis of MLS data, which is thought to capture about 60 percent of market activity and pick up most sales valued below $1m.
“ Abaco saw heightened activity in the land market, while completed home sales dipped, indicating a potential cooling. Eleuthera and Exuma displayed stable sales volumes, with only minor quarter-over-quarter fluctuations,” it added.
As for New Providence home listings for sale, while the 128 properties that came on to the market in the 2024 third quarter represented a decline of 33 percent and 19 percent year-over-year and quarter-over-quarter, respectively, Morley Realty added that this number “remains higher than those
seen towards the end of the COVID-19 period”.
Mr Morley told Tribune Business: “I think what it shows is there’s still a tremendous amount of inventory coming in yearover-year. It’s still very high, but on a quarter-over-quarter basis it’s levelled out and, in some cases, dipped a bit. If you look at sales, it depends on whether you’re buying a house or land.
“Homes seem to be doing except in Abaco where the closed number of sales has slowed a bit. It’s not a tremendous drop. You’re going to see little dips and bumps here and there from the market perspective, but we have more product.”
Mr Morley said the amount of time properties listed for sale spend on the market increased slightly in the 2024 third quarter. New Providence homes spent an average 134 days on the market, which represented a 218 percent and 57.6 percent increase year-over-year and quarter-over-quarter, respectively, but this figure also remained “within normal ranges” for this market.
The Morley Realty chief suggested this did not reflect a reduction in buyer demand but, rather, “buyers being a little more cautious in purchasing because of the amount of inventory out there” which was giving them pause for though on which property to buy and if they needed more time to assess what was available.
“In other words, the demand remains,” he added. “The fact is you have all this excess inventory, so everything showing is on the market for a longer period of time, but the demand is increasing, which is always encouraging.
“Imagine if the demand had dropped off and we had this level of inventory coming on to the market. You would then have a
buyer’s market. It’s very strong. If you look at it overall, it really shows a good, healthy market. I think it’s very strong....
“My agents are doing well. We’re anticipating we’re going to exceed our sales volumes for 2023. We’ll do that for this year,” Mr Morley said. “Unless something major happens to the Bahamian economy or global economy, we don’t see 2025 dropping off at all.
“If you look at the volume of consumption right after the pandemic, and now we’re on the rebound with inventory, and you factor in the demand for purchasing that we’re seeing, I think its setting itself up to be a good market for at least another year.
“The demand is there, and the demand has inventory to choose firm. As long as that demand stays consistent or continues to improve steadily, that’s the key factor. We’ve got the inventory.” Mr Morley likened the frenetic level of real estate sales activity immediately following COVID-19 as “a market on steroids; we knew that could not last”.
Asked how current conditions compare to the immediate pre-pandemic period, he added: “I haven’t done a direct comparison, but based on my recollection I would say the market is very strong, if not stronger, than it was in 2019.” And Mr Morley said year-end activity, and heading into 2025, will likely receive a further boost from the US presidential election outcome being decided.
“Sales prices remained relatively stable across the island markets, with slight variations reflecting local market conditions. Median home prices fell slightly in Nassau and Paradise Island but remained steady or increased in Abaco, Eleuthera and Exuma,
suggesting stable or growing demand,” Morley Realty’s analysis stated.
“The land market showed more varied trends, with significant increases in Nassau’s median prices, while average prices in Abaco and Exuma rose, likely due to more high-value transactions. Days on the Market (DOM) for homes increased slightly in the 2024 third quarter, indicating properties took longer to sell compared to the previous quarter.
“Nassau & Paradise Island saw a more pronounced rise in DOM for homes, while Abaco and Grand Bahama’s land sales also took longer to close, potentially reflecting buyer caution or slower sales cycles. The average list-Tosale price ratio remained stable overall, with minor fluctuations across the islands,” the realtor added.
“Sellers in Exuma were more flexible on land prices, while Nassau & Paradise Island saw a slight increase in the ratio for homes, suggesting less flexibility on sale prices. Overall, the 2024 third quarter represented a period of adjustment for The Bahamas’ real estate market, marked by increased inventory, varied demand trends and stableto-rising price levels.
“The land market continued to show steady interest, while the home market remained relatively stable with regional variations, particularly in Abaco, which experienced strong land activity but a slowdown in completed home sales. Longer days on the market in some areas indicated a more cautious buyer approach amid the rising inventory.”
‘BASELESS’: BAHAMAS BROKER CHIEF BLASTS $20M SANCTIONS DEMANDS
company in question [Mintbroker] made no profits from commission business during that period, instead incurring tens of millions in expenses. It’s incredibly frustrating to see the [US] government perpetuate these lies without facing any consequences.
“I don’t believe I’ll receive fair treatment in this case, so I’m counting on the appeals court to overturn this. These ongoing litigations have already ruined my life and finances - there’s nothing left. Fortunately, my lawyers understand the SEC’s tactics and are fighting for me pro bono. I believe I will eventually win, but my focus is not on the litigation any more; it’s on my health, which has unfortunately suffered in recent months.”
The SEC, though, in court documents alleged that over the four-and-a-half year period to the 2019 third quarter, which is when Mintbroker ceased operating, the Bahamas-based broker/ dealer and Mr Gentile earned some $13.13m in net income that was generated from trading commissions paid by the very American clients that it was illegally soliciting in violation of US laws.
This sum represents the amount that the SEC wants Mr Gentile to surrender, or “disgorge”, via court order. It is alleging that, over the same four-and-a-half years, Mintbroker received a combined $25.315m in gross trading commissions from more than 14,000 US clients yet those same customers suffered collective losses of $29.69m.
As a result, the SEC is pledging to use the $13.13m - if the court orders Mr Gentile to pay it - to compensate Mintbroker’s former clients. The US regulator’s calculations have been based on documents provided to it by its Bahamian counterpart,
the Securities Commission, via normal regulatory cooperation channels as well as Mintbroker’s liquidator, Igal Wizman, the EY Bahamas accountant and partner. Besides the profits surrender, the SEC is also urging the south Florida court to order that Mr Gentile and Mintbroker, which also operated under the names SureTrader and Swiss America Securities, to pay pre-judgment interest of $3.548m for a collective $16.677m financial sanction and penalty.
And, in addition to that, it wants Mr Gentile in his personal capacity to surrender a further $1.083m in gains he received; pay pre-judgment interest of $502,278; and a further $1.887m “civil money penalty”. In total, these penalties amount to some $20.15m that the SEC wants the south Florida court to impose against the former Mintbroker chief and his closed business.
The US capital markets regulator cited the manner of Mintbroker’s closure, and exit and departure from The Bahamas, as one factor that warranted the civil penalty. When faced with regulatory actions and investigations by the Bahamian Securities Commission, he bought sufficient time to voluntarily wind-up the broker/dealer himself and remove all its assets from this jurisdiction.
That came after Philip Davis KC, then the Opposition’s leader but who later became prime minister after the fact, filed a successful Judicial Review challenge on Mr Gentile’s behalf that thwarted the Securities Commission’s efforts to take regulatory action against Mintbroker/SureTrader for several months. There is nothing to suggest Mr Davis did anything wrong.
“SureTrader’s joint official liquidators, who were appointed by the Bahamas Supreme Court, reported opaque circumstances
NOTICE
NOTICE is hereby given that BAYALDO FRANCOIS, Abaco, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
N O T I C E
Murphy Semai IV Ltd.
Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a ertifcate of issolution issued by the e istrar General on the 15th day of October, 2024.
David Butler Liquidator of Murphy Semai IV Ltd.
surrounding Gentile’s winding down of SureTrader during the third and fourth quarters of 2019,” the SEC alleged. “Based upon the joint official liquidators’ first report dated August 30, 2022, in the five months leading up to Gentile shutting down SureTrader, its assets were depleted.
“SureTrader’s unaudited balance sheet for the period ending June 30, 2019, reflected total assets of $64.773m, liabilities of $40.534m and total equity of $24.239m. As of December 31, 2019, SureTrader’s assets were reported to be $33,489, yet the joint official liquidators did not identify any additional cash or investments held by SureTrader.
“The joint official liquidators’ first report raises serious questions about Gentile’s handling of SureTrader’s finances in its last days, and the circumstances indicate that Gentile likely received the benefit of SureTrader’s closure.”
Justifying its sanctions demands, the SEC’s latest legal filings noted that Mintbroker and its predecessor entities began operating in The Bahamas in 2011 and remained in this jurisdiction for eight years until its closure.
“Since at least March 2016 through November 2019, Gentile, through SureTrader, marketed itself to novice day traders seeking to avoid US regulations on securities trading, including regulations on pattern day trading and leverage,” the SEC asserted. “
“SureTrader solicited securities transactions from thousands of US-resident prospective and existing customers through its website, by e-mail and by means of advertisements on popular US--based day trading websites without registering with the SEC in violation of [the US] Exchange Act.”
Noting that Mr Gentile’s broker/dealer started with
just three employees in 2011, the SEC said promotions such as enabling clients ‘to avoid the nasty pattern day trading rule’; commissions as low as $1.95 per trade; and offering $99 worth of free trades helped to quickly grow its client base.
“SureTrader and Gentile’s solicitation efforts resulted in a steady increase in new accounts, with hundreds of accounts being opened each month. During the relevant period, US customers comprised at least 50 percent and, at times, as high as 80 percent of SureTrader’s customer base,” the SEC said.
“By 2018, SureTrader had nearly 75 employees and had over 40,000 customer accounts, generating millions in trading commissions and other fees assessed by the firm.” The US regulator alleged that Mr Gentile and his Bahamian broker/dealer took steps to disguise they were actively soliciting US clients by getting them to sign a form confirming they had not been approached by the company and its representatives.
However, it added that this was contradicted during the trial by SureTrader’s former chief compliance officer, who said this form was automatically ‘signed’ when a US client opened a new account electronically. And, while the broker/ dealer’s website had a ‘popup blocker’ to prevent any appearance that US clients were being solicited, the SEC said it also included an area for American clients to log-in and gain website access.
“During the relevant period, SureTrader generated over $25.27m in commissions from more than 14,000 US customers alone. These US customers lost $29.69m trading with SureTrader,” the SEC alleged. Demanding that Mr Gentile and his company be ordered to surrender their “ill-gotten gains”, it added that
NOTICE
NOTICE is hereby given that TYRONE PALMER, #16 Heybridge Lane, Freeport, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
N O T I C E
MURPHY SOUTH BARITO LTD.
Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a ertifcate of issolution issued by the e istrar General on the 15th day of October, 2024.
David Butler Liquidator of
MURPHY SOUTH BARITO LTD.
NOTICE
RPG INC.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 212681 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 24th day of October A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is MR. RENANI PORTES hose address is icardo ocha omfm 97 CA 39, Villa B D Pedro, 13087-732, Campinas, SP, Brazil. Any Persons having a Claim against the abovenamed Company are required on or before the 23rd day of November A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made before such claim is proved.
Dated this 24th day of October A.D. 2024.
RENANI PORTES GOMES LIQUIDATOR
the broker/dealer earned $35.523m in total trading commissions in its last fourand-a-half years. Using data provided by the Securities Commission and Bahamian liquidator, the SEC said its officials had calculated that $25.315m of these commissions were paid by US clients, with Americans accounting for between 42 percent and 79 percent of the monthly earnings. Applying these percentages to the profits declared in the broker/dealer’s quarterly filings came up with the $13.13m “disgorgement” figure.
“If paid, the Commission staff has determined that it would be feasible to distribute to US investors who collectively lost more than $29.69m during the relevant period,” the SEC filings pledged. It also demanded that Mr Gentile hand over a $1.084m consultancy fee paid to a trust of which he is a beneficiary.
Branding the Mintbroker chief’s conduct as “egregious”, the SEC argued that the financial punishment should be harsh because “Gentile has similar opportunities to commit future violations, especially operating an offshore broker that is intended to run undetected by the SEC.
“Unless enjoined, Gentile will have the ability to resume his unregistered foreign broker business with minimal effort and target US customers through the
Internet, use of third-parties and other means. For all of these reasons, a permanent injunction is clearly warranted,” the regulator added.
Mr Gentile enjoyed a somewhat colourful stay in the Bahamas, with Tribune Business reporting in 2016 how he and his broker/ dealer 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 MintBroker’s Bahamian head office in a successful bid to gain evidence against a Canadian fraudster who subsequently pleaded guilty to the charges against him. He 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.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, JAIAN DIONNE CARGILL, of Cowpen Road, Nassau, The Bahamas, intend to change my name to J’IAN DIONNE CARGILL If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that ANTONYON LOUIS, of Carmichael Road, Faith Avenue, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 25th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
Bottin 1 Ltd.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 212115 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 24th day of October A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Giuliano Bottin, whose address is SQN 215, BL E AP 605, Brasilia, DF, CEP: 70874-050, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 23rd day of November A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made before such claim is proved.
Dated this 24th day of October A.D. 2024. GIULIANO BOTTIN LIQUIDATOR
Customs union awaits poll amid strike threat
FROM PAGE B1
Government’s contractual rehiring of retired public servants aged over 65. He said was not giving the Government “an ultimatum” to cease this practice just yet after the union issued a statement pointing to a previous 2021 Supreme Court ruling where it successfully challenged the legality of contractual appointments for retirees.
It argued that the latest round of retiree re-hirings meant the Government “was in breach of the industrial agreement [between
the parties] and two key enactments of law”. The BCIAWU first referred to article 108 of the constitution, writing: “Subject to the provisions of this constitution, power to make appointments to public offices - and to remove and to exercise disciplinary control over persons holding or acting in such offices - is hereby vested in the Governor-General, acting in accordance with the advice of the Public Service Commission.”
It also referred to “section seven of the Immigration Act”,
quoting it as stating: “The Governor-General, acting in accordance with the advice of the Public Service Commission, shall appoint a person to be the director of Immigration who shall be the executive officer of the Board and who shall, subject to the provisions of this Act, be charged with the general administration of this Act.
“The Governor-General, acting in accordance with the advice of the Public Service Commission, shall appoint such number of persons to be deputy directors of Immigration and
Immigration officers for the purposes of this Act as may from time to time be authorised by Parliament.”
Mr Brooks, speaking previously to Tribune Business, said: “I don’t want to give them an ultimatum just yet. The idea was to speak out on it and to give them, or to remind them of the legal implications, and what the court had ordered. Just to have to say again what they’re doing is wrong speaks volumes.”
Meanwhile, healthcare workers also spoke at last night’s TUC rally on the many struggles they are
facing. President of the nurses union, Muriel Lightbourn, mentioned concerns over a lack of promotions.
“In March they came and they give me a list of promotions. Out of 100-and-something promotions they give me, what, 25 and wanted to have a celebration. Now you know that isn’t happening on my watch,” she said.
“And so today, nine months, eight months later, I am still getting one and two promotion letters trickling down my nurses and Department of Public Health. I want them to hear
Cable Bahamas probes hotel Internet complaint
technicians were sent to the property on varying days with the goal of fixing the problem.
“So I contacted Cable Bahamas,” Mr Johnson said. “And they sent one of their technicians. The technician came and he couldn’t resolve the problem. And so I wasn’t satisfied with that. He was saying that it was our system, because what happened is we implemented a new system, like late last year, early this year so that Internet can be pushed to all the rooms on the premises.
“So the second guy came; second technician came. And he came and he wasn’t able to solve the problem. He said that he saw people having intermittent problems with the Internet. So he, too, said it wasn’t Cable’s fault. It was our fault. And we know it wasn’t our fault because what happened is we called our IT guy and, and the IT guy came in and he did his analysis and he discovered where it wasn’t our system, it was actually Cable Bahamas.”
Cable Bahamas, in response to Tribune Business inquiries, said it was investigating the complaint. “We are aware of the claims made by Glowell Motel and are currently looking into the matter. We will address any findings once our internal review is complete,” it added.
Mr Johnson explained to Tribune Business that a residential home is attached to the motel, though they both have separate Cable Bahamas accounts. An e-mail thread between Glowell Motel, mainly Mr Johnson, and Cable Bahamas shows the communications provider informing Mr Johnson that the motel’s commercial account does not include Internet service but it does include television services.
Cable Bahamas said the residential home joined to the motel has an account that includes Internet service, but Mr Johnson told this newspaper that the motel has always had Internet connection. It bought a modem last year or in early 2024 to ensure it
2024 will not go out unless I have the rest of those promotions.
“I still get some people who ain’t got their confirmations not yet working. They aren’t confirmed. The Government of the Bahamas and our minister of health is interviewing foreign nurses to come into this country. Then foreign nurses who are coming into this country will not get Immigration status. Enough is enough.”
to pay for that,” he added.
reaches every room. In earlier messages in the e-mail exchange, Cable Bahamas said an adjustment of $39.99 would be “submitted for one month without Internet service”.
“I am writing to sincerely apologise for the poor service experience you recently encountered with us,” the e-mail began. “We understand that our service fell short of your expectations, and for that we are truly sorry.
“We take full responsibility for the lapse in service and the inconvenience it may have caused you. Please note that this is not indicative of the standard we aim to uphold, and we are committed to making it right. However, an adjustment will be submitted for one month without Internet service for $39.99.”
When Glowell Motel said it wanted to be reimbursed for the private technician’s fee as well, they were told by Cable Bahamas that the matter would be looked into. The e-mail thread revealed Glowell Motel stating that they had not heard back from Cable Bahamas in weeks, but the latter then replied: “We are unable to process a reimbursement of $180 for the private technician that was brought in to assist you with this issue.”
The e-mail saw Cable Bahamas reference equipment at the motel that did not belong to Cable Bahamas. “Per our investigations, both technicians 127 and 112 who visited your property in the month of July reference the numerous amounts of non-Cable Bahamas equipment that is attached to the modem,” it said “It was also advised by tech 127 to bring in a private IT person to further assist because of the numerous items attached to the modem. Per tech 112, issue was resolved with the
assistance from your private IT technician.
“We understand that this situation is frustrating, and we apologise for any inconvenience this may have caused. Unfortunately, after investigating this matter, we are unable to process a reimbursement of $180 for the private technician that was brought in to assist you with this issue. If you would like to discuss upgrading your commercial account to include Internet service or if there are other options we can provide, please feel free to reach out.”
Mr Johnson, though, argued: “We always had one service, one modem that we were using. That’s just their smokescreen. Because they don’t want to take responsibility for what actually transpired. We always had one system here. It is one building. It just happens so that the owner lives in the building. That’s all.”
Mr Johnson’s follow up e-mail saw a Cable Bahamas employee tell him that the company was experiencing problems in the St Albans Drive area, and the private technician hired by the motel confirmed that the issue was on Cable Bahamas’ end.
“I must say that I am completely baffled over your response,” Mr Johnson
said. “Firstly, one of YOUR employees (Esther) categorically stated that Cable Bahamas was experiencing problems in this area (Saint Albans Drive) during that time. In fact, we were informed that your technicians were working feverishly at the time to rectify this situation.
“So, the statement that you made in your response ‘experiencing intermittent issues’ is not correct. In fact, the entire Internet service was down for the greater part of a week. Also, you stated that “per tech 112 issue was resolved with the assistance from your private IT technician’.
“This declaration is also not correct. Our ‘private technician’ said/confirmed from day one that our ‘nonCable Bahamas equipment’ was working properly. The ‘numerous items attached to the modem’ was absolutely not the problem. By the way, our private technician never communicated with any of Cable Bahamas’ technicians concerning this matter.”
Mr Johnson continued: “Secondly, Cable Bahamas personnel was quite aware for a long time that the entire building was being serviced with Internet by the residential account. We find it very strange that all along we were not having
any major issues. Now, all of a sudden in recent times, it’s a major problem.
“Besides this, there wasn’t anyone from Cable Bahamas who informed us that we needed separate Internet accounts for both the residence and the motel. However, if you do have such a record documented indicating this to us, then feel free to share it with us. So, this proves that Cable Bahamas ‘dropped the ball’ miserably in this regard. Had we been advised properly and professionally, this situation could have been rectified by ourselves sometime ago.
“I am strongly of the opinion that this situation could have been handled more amicably. Even if Cable Bahamas had met us half-way, the situation would be different. In my humble opinion, it’s a crying shame that we are being penalised over something we had absolutely no control over. It appears as if (Cable Bahamas is taking full advantage of the victim.”
Mr Johnson said when a third Cable Bahamas technician took on the job, he solved the problem in five minutes, while adding that the issue had something to do with cables or wiring.
“We had to call our IT guy in twice and we had
“We have to pay $180. That may not seem like a lot of money but for a small company it is. And it wasn’t our problem. It wasn’t our fault. So I wrote a letter stating all this, and they sent me a letter back saying, ‘oh, they would only pay for a month’s supply of Internet’, which is equivalent to like $47, which is like a drop in the bucket.
“It doesn’t even cover our cost to pay for the technician who we had to bring in. So I wrote another letter and I said, ‘no, this is not acceptable’. I say, ‘at least you all should meet us halfway.’ That’s where they sent another letter stating that they were not going to do anything.”
Mr Johnson added: “And so keep in mind now, this is almost a week we didn’t have access to our Internet. And, of course, you know, running a business where customers coming is foolhardy for you to rent a room today without having a Wi-Fi. So a lot of our customers were complaining in the interim.
“Our goodwill has been tarnished because a lot of the customers who came here, they say, ‘oh, you all don’t got Internet.’ They left. Nobody wants to rent a room without Wi-Fi. I’m not even talking about the $180 we had to pay for the technician. I’m talking about the goodwill involved.”
Moody’s praises fiscal uptick but surplus, revenue doubts
domestic product (GDP), or economic output. However, the Government’s Budget surplus projections for 2025-2026 and 2026-2027 - as unveiled in this year’s Budget - call for surpluses equal to 2.8 percent of GDP at $448.2m and $457.8m, respectively.
Moody’s 0.8 percent forecast estimates a more modest, but still noteworthy, surplus of around $128m for both those fiscal years - a figure that is less than one-third of what the Government is projecting. And, while it, too, is predicting that revenues will exceed expenditure, it added that the Government’s revenues as a percentage of GDP will “stabilise” at 22.2 percent over the next four years.
If accurate, that would leave the Government short of the 25 percent revenueto-GDP target it is aiming to hit in the 2025-2026 fiscal year. “From 2024 to 2028, the Bahamian government is expected to see a slight increase in revenue as a percentage of GDP, stabilising at 22.2 percent in the later years,” Moody’s said yesterday.
“Concurrently, expenditures are projected to decrease marginally to 21.4 percent of GDP by
2027, maintaining this level into 2028. This narrowing gap between revenue and expenditures underpins the improvement in the fiscal balance, transitioning from a deficit of 1.3 percent in 2024 to a steady surplus of 0.8 percent from 2026 onwards.
“The trajectory towards a fiscal surplus reflects effective fiscal management, emphasising revenue enhancement and expenditure control.”
The International Monetary Fund (IMF), too, questioned whether the Government would hit the 25 percent revenue-to-GDP target in its last Article IV consultation on The Bahamas unveiled in February. It argued that this nation must introduce a personal income tax targeting “the top 10 percent of earners” and other reforms, including a 5 percent levy on capital gains, dividends and interest income. It also suggested that the marginal personal income tax rate equal that of the corporate tax to prevent companies avoiding the latter by paying our profits as salaries to shareholders and top executives.
Combined with removing the $60,000 real property tax cap for owner-occupied residences and increasing the rates for “higher value”
homes, as well as “eliminating tax expenditures” on gambling which does not attract 10 percent VAT, the Fund suggested this reform package could generate extra government revenue equal to 3.7 percent of GDP - almost $540m based on today’s figures - in four years’ time.
However, Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business at the time that the Davis administration “disagrees” with the IMF’s position and believes there is sufficient “buoyancy” in the current tax system to achieve its revenue ratio ambitions.
Moody’s, meanwhile, yesterday gave the Government credit for the improved fiscal position it has managed to achieve coming off Hurricane Dorian and COVID-19.
“The Government of The Bahamas demonstrated improved fiscal performance in the fiscal year ending June 30, 2024, driven by robust tourism recovery and prudent expenditure management,” it said.
“The fiscal deficit narrowed to 1.3 percent of GDP, compared with 3.8 percent of GDP in the prior fiscal year. While the fiscal outturn was slightly worse than budgeted, the
debt burden stabilised at 80 percent of GDP, while the Government made some progress toward diversifying its funding sources, including increased domestic issuance.
“Revenue collection benefited from strong tourism-related revenue, driven by higher visitor arrivals and higher per visitor spending. In addition, tax collection efforts improved, contributing to the increase in recurrent revenue. The Government also maintained disciplined spending, with efforts to rationalise spending and under-execution of the capital budget resulted in lower-thanbudgeted spending,” Moody’s added.
“The fiscal 2024-2025 Budget aims to continue the trajectory, placing debt on a downward trend. The Budget targets a deficit of 0.5 percent of GDP, along with a 3.9 percent of GDP primary surplus. The Government is targeting higher revenue to drive the improved fiscal performance.
“Although the Government doesn’t plan any tax increases, they are targeting higher tax collection through improved compliance while also targeting an increase in certain fees and services charges.” Moody’s
estimated that The Bahamas’ debt-to-GDP ratio will continue to slowly but surely decline to around 71.85 percent by the end of the 2025-2026 fiscal year. This, though, will leave the Government with some work to do still to hit the 50 percent debt-to-GDP target stipulated in the fiscal responsibility rules now contained in the Public Financial Management Act. It has previously targeted attaining this ratio by the 2031 fiscal year. Moody’s report also showed that, even at 71.85 percent, this nation’s debtto-GDP ratio will still be higher than similarly rated countries who will have an average of around 48.6 percent. This is likely one factor explaining why The Bahamas’ credit rating, which remains below socalled ‘investment grade’ and at ‘junk’ status, has not been upgraded or improved
despite the better economic and fiscal performance.
“We set the fiscal strength score at ‘caa1’, reflecting the country’s high debt burden and weak debt affordability,” Moody’s added. “The Bahamas’ fiscal strength is constrained by a narrow revenue base, which contributes to weak debt affordability metrics. The ratio of interest to revenue was 20.1 percent in fiscal 2023, up from 13.6 percent in fiscal 2019.
“We assess government liquidity risk at ‘ba’, informed by the Government’s high borrowing requirements and the high rollover risk on external commercial debt. Our assessment of government liquidity risk also captures the Government’s less reliable access to external commercial debt because of the rise in borrowing costs since the COVID-19 pandemic.”
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MARINE FORECAST
