Asset Recovery Footnotes from offshore Alex Potts, Sedgwick Chudleigh, Bermuda

AG of Bermuda v Zirkind [2016] Bda LR 120 Civil Recovery Order under Proceeds of Crime Act 1997. $826,000 in cash & several cell phones found in a hotel room safe. 25 year old Israeli national believed to reside in China, left Bermuda after being acquitted of criminal charges. Unlawful conduct means conduct in Bermuda which is (1) a breach of our criminal law, or (2) conduct abroad which is (a) a breach of a foreign jurisdiction's criminal law, and (b) is conduct which, if committed in Bermuda, would be unlawful under Bermudian criminal law. No specificity required.

AG of Bermuda v Old Mutual et al (resolved)

AG of Bermuda v De Silva et al (pending)

Government of Bermuda v Lahey Clinic (Federal Court, Massachusetts, pending)

What a Scan!

Lahey’s Motion to Dismiss Routine business arrangements No standing on the part of Bermuda Government / Attorney General of Bermuda to bring proceedings No loss / loss causation Limitation period has expired Politically motivated lawsuit timed to coincide with General Election campaign in Bermuda Government of Bermuda response: “In responding to Bermuda’s allegations, Lahey has confirmed them”.

With friends like these…

Bermuda’s Commission of Inquiry (Final Report February 2017)

Abi Jouadi and Azar Trading Corp v Cigna Worldwide Ins Co

Marex Financial Ltd v Garcia, High Court, April 2017 $5 million judgment debt against 2 BVI companies (Creative Finance et al) BVI companies did not pay judgment debt, put into liquidation in BVI Marex sued UBO in London for asset-stripping For jurisdictional purposes, Court held that it was strongly arguable that: Actionable tort on the part of the UBO to induce his BVI companies to strip their assets in fraud of English judgment creditor NB: Creative Finance’s liquidators had already been denied Chapter 15 recognition/assistance by US Bankruptcy Judge Gerber: “the inference is inescapable is that . . . these transfers were orchestrated . . . in a blatant attempt to avoid payment of the English Judgment”.