News Americas: Lawsuit Alleges Resorts World Bimini Used for Fraudulent Activities
Oct. 14, 2024: A civil lawsuit filed in the U.S. District Court for the Southern District of Florida today, Oct. 14th, accuses Genting’s U.S. arm, Genting Americas, of using Resorts World Bimini in the Bahamas as a “financial wasteland” to conceal fraudulent activities.
The Lawsuit
The lawsuit, filed by RAV Bahamas, alleges the resort has been used to artificially inflate profits and manipulate debt-to-equity ratios across Genting’s U.S. and international projects.
About Resorts World Bimini, Bahamas
RAV Bahamas, owned by the Florida-based Capo family, initially purchased over 700 acres on North Bimini in the late 1990s with plans to create a bustling vacation destination. By 2011, they had developed Bimini Bay Resort, featuring villas, marinas, and recreational areas. In 2012, RAV partnered with Genting to expand the resort with a casino, forming a joint venture, BB Entertainment (BBE). RAV transferred 20 acres of land for the project, and Resorts World Bimini officially opened in 2013, boasting a 10,000-square-foot casino and a 305-room hotel.
RAV’s Allegations
However, RAV claims they have not received any profits from the venture, alleging that Genting Americas controls the finances and has burdened the company with over $885 million in debt. The lawsuit states that as of December 2022, BBE’s liabilities exceeded those of Genting Malaysia and its 150 subsidiaries combined. RAV accuses Genting of hiding the debt in consolidated statements through vague expense categories and obstructing their efforts to review financial records or conduct an independent audit.
The Lawsuit’s Demands
The lawsuit further alleges that Genting’s complex corporate structure, with numerous subsidiaries, is designed to conceal financial improprieties. RAV is seeking $600 million in damages, claiming Genting’s actions have deliberately undermined their investment and ability to profit from the project.
Conclusion
The lawsuit alleges that Resorts World Bimini has been used as a “financial wasteland” to conceal fraudulent activities by Genting’s U.S. arm, Genting Americas. RAV Bahamas is seeking $600 million in damages, alleging that the company has been burdened with over $885 million in debt and has not received profits from the venture.
Frequently Asked Questions
Q: What is the nature of the lawsuit?
A: The lawsuit alleges that Resorts World Bimini has been used to artificially inflate profits and manipulate debt-to-equity ratios across Genting’s U.S. and international projects.
Q: What are the allegations against Genting Americas?
A: The lawsuit alleges that Genting Americas has used the resort to conceal fraudulent activities and has burdened RAV Bahamas with over $885 million in debt.
Q: What is RAV Bahamas seeking in damages?
A: RAV Bahamas is seeking $600 million in damages, alleging that Genting’s actions have deliberately undermined their investment and ability to profit from the project.
Q: What is the background of Resorts World Bimini?
A: RAV Bahamas, owned by the Florida-based Capo family, initially purchased over 700 acres on North Bimini in the late 1990s with plans to create a bustling vacation destination.