The original developer of the Baha Mar resort in the Bahamas, Sarkis Izmirlian, has won approval to proceed with a $2.25 billion fraud claim against China Construction America (CCA). The ruling was made by New York State Supreme Court Justice Saliann Scarpulla.

Izmirlian, who invested $845 million in what was meant to be the Caribbean's largest leisure development, alleges CCA deliberately sabotaged the project through fraudulent practices and delays. The resort is now primarily owned by Hong Kong-based Chow Tai Fook Enterprises (CTFE).

The project began in 2005 as a "Vegas by the sea" concept but faced challenges during the 2008 recession. The Export Import Bank of China (ExIm) rescued the project with a $2.45 billion loan, installing CCA as both controlling shareholder and contractor.

According to the lawsuit, CCA:

• Used Baha Mar as a training ground for unqualified staff
• Submitted fraudulent billings worth hundreds of millions
• Never intended to complete the project on time or within budget
• Caused a severe liquidity crisis in 2015
• Ultimately forced out the original developer

The resort finally opened in May 2017 after numerous delays. Justice Scarpulla rejected CCA's request to move the case to arbitration, requiring them to file a defense by February 13, 2019. The case has become particularly sensitive for the Chinese government, which has recently restricted investment in overseas gaming industries.

The lawsuit represents one of the largest construction-based fraud claims in the Western Hemisphere, with Izmirlian seeking to recover his lost investment and expected future profits from the resort.

Related Articles

Previous Articles