by Sheep Shearer
MSR, through Philippe Martinez, has filed a Civil RICO lawsuit against a group of defendants related to the St Kitts and Nevis and St Lucia CBI programs. This is a dispute over damages, where MSR claims to have been harmed financially by the actions of the defendants. Philippe Martinez has been discussing the alleged MSR damages publicly, and the damages seem to center on three specific claims.
- MSR invested millions of dollars in the film industry in St Kitts and Nevis and the CBI Public Benefit Option was offered as a way to recoup their investments and make more movies.
- MSR was either unwilling or unable to sell their lawfully granted PBO units at the legally mandated price due to Galaxy discounting the jail project in St Kitts and Nevis and infrastructure project in St Lucia. As a result, MSR has lost its investments in St Kitts and Nevis.
- The citizens of St Kitts and Nevis and St Lucia lost billions of dollars of CBI revenue due to the discounting program, and Philippe Martinez has stated that he plans to facilitate a class-action lawsuit in the near future to help the citizens recoup that money from foreign banks in the UAE and Asia.
In this article, we will cover these claims one by one, starting with the claim of lost investment.
MSR claims to have invested millions of dollars in St Kitts and Nevis by building a thriving movie industry. They claim that both MSR and its American investors expected to realize their investment from the MSR Entities’ sales of CBI shares. However, MSR’s Achilles heel is that they came to St Kitts and Nevis as a movie company with no knowledge of the CBI program to make movies and a profit from the sales of those movies. MSR claims to have made 10 films in St Kitts and Nevis, but with their background and experience, they should have sold these films and realized a profit. Instead, they claim to have lost millions of dollars.
To top it off, Philippe Martinez and some MSR executives have a less than stellar history when it comes to managing money and producing successful movies. Perhaps that was the catalyst that led to the fraud conviction. St Kitts and Nevis was not Philippe Martinez’s only foray into the film industry and investors losing monies. In 2008, Philippe Martinez received $200 million from British investors after serving his jail time in France to launch Bauer Martinez Studios and produce movies. The Bombreport states "Martinez had more hubris than understanding how to run a successful studio". "Just one year later (yes just one year) he could barely stay open for business or release any of his films".
Additionally, MiraMax in Oct 2008 filed a commercial eviction lawsuit against Bauer Martinez Studios. Other MSR executives have had similar business failings. Karinne Behr, who is reported to be Philippe Martinez’s sister, was reported as the President and Partner at Sanborn Studios in Florida by the Bradenton Herald and is also an Executive Producer in MSR. Sandorn Studios were to create over 100 high-paying jobs in exchange for a government grant of $650,000. The jobs never materialized, and in the end, Sandorn Studios was dissolved and agreed to pay back $350,000+ to the County of Sarasota.
Do you see a pattern? Is MSR’s loss of "millions" in claimed damages the result of actions by the defendants or a result of poor management and decision-making by Philippe Martinez and MSR executives?
The last item that comes into question is when did Martinez learn of the discounting scheme? They claim to have evidential recordings of Les Khan, stating that around May 2022 the Harris administration and Khan came under public criticism and allegations of fraud. It seems clear they were aware and knew full well of the alleged issues surrounding the CBI Unit and discounting schemes early in 2022 or perhaps even sooner. Yet MSR still went ahead, eyes wide open, taking the risk and purchasing the OTI hotel in December 2022. If that is the case, are the defendants responsible for that decision?
MSR still owns the hotel, which has a value. So, are there any damages? Remember, you need to prove a loss to have damages. These questions and more would come out at trial in court, and perhaps is why Martinez is exerting great pressure by seemingly trying this case in the public domain, looking for a quick settlement.
I suggest the defendants need to dig deep into the finances and background of MSR, as I smell a wolf and we will shear him some more in the next release, where we will address MSR’s claim they were unable to sell the CBI units.
Conclusion
The MSR case is a complex one, with multiple claims and counterclaims. Philippe Martinez and MSR are claiming damages, but the questions remain: where did the money go? Was it poor management, an extravagant budget for Philippe Martinez, or were the shareholders/investors duped? The answers will come out at trial, and perhaps is why Martinez is exerting great pressure by seemingly trying this case in the public domain, looking for a quick settlement.
FAQs
Q: What is the main claim of MSR’s lawsuit?
A: MSR claims that they invested millions of dollars in the film industry in St Kitts and Nevis and the CBI Public Benefit Option was offered as a way to recoup their investments and make more movies.
Q: What are the three specific claims of MSR’s lawsuit?
A: MSR’s claims center on three specific claims: 1) they invested millions of dollars in the film industry, 2) they were unable to sell their lawfully granted PBO units at the legally mandated price, and 3) the citizens of St Kitts and Nevis and St Lucia lost billions of dollars of CBI revenue due to the discounting program.
Q: What is the background of Philippe Martinez and MSR executives?
A: Philippe Martinez has a history of poor business decisions and has been convicted of fraud. Other MSR executives have had similar business failings.
Q: What is the significance of the OTI hotel?
A: MSR purchased the OTI hotel in December 2022, and the value of the hotel is still unknown. It is unclear whether MSR has any damages related to the hotel.