Published 25 May 2017
US judge modifies asset freeze order for two illicit actors granted St. Kitts and Nevis citizenship by PM Harris.
BASSETERRE, ST. KITTS, May 24th 2017 – A Nevada judge has modified the asset freeze order imposed on two illicit actors granted St. Kitts and Nevis Economic Citizenship in 2015 by Prime Minister, Dr. the Hon. Timothy Harris.
The US Securities and Exchange Commission (SEC) complaint unsealed on May 19th 2016 stated that fraud charges against attorney and Nevada resident David Kaplan were filed based on an allegedly fraudulent scheme that raised US$15.8 million.
From that amount, approximately US$385,000 was sent to St. Kitts and Nevis between June 2015 to March 2016, and of which at least US$79,394 was wired to a St. Kitts law firm to obtain passports and/or St. Kitts and Nevis citizenship for Kaplan and his wife Lisa.
On May 20, 2016, the court issued a temporary restraining order freezing the assets of Kaplan and the other defendant entities, and prohibiting them from soliciting, accepting or depositing any monies from actual or prospective investors while the order is in effect. The order further requires Kaplan and the defendants to repatriate foreign assets within seven days.
In March 2017, Judge Miranda Du heard David B. Kaplan’s modified the Asset Freeze.
“Defendant David B. Kaplan and/or Relief Defendant Lisa Kaplan may open one (1) new bank account to deposit employment income and pay household living expenses; b. Defendant Kaplan shall identify his prospective employer to the United States Securities and Exchange Commission (SEC) by no later than five (5) days after the entry of this order; c. Defendant Kaplan shall notify the SEC of the bank and account number within five (5) days of establishing the account; d. The Defendant shall provide copies of the monthly account statements to the SEC via email no later than five (5) days after receiving the statements from the bank; and e. Defendant David Kaplan and Relief Defendant Lisa Kaplan are hereby prohibited from depositing any investor funds into the new bank account,” Judge Du ordered.
According to the SEC complaint, Kaplan repeatedly lied to prospective investors by stating that their funds would be invested in a low-risk, private offshore trading program that would be provide estimated monthly profits of 10 percent.
The complaint alleges that Kaplan did not use investor funds as promised but instead: Used at least US$2.3 million for his personal benefit, including approximately US$385,000 sent to St. Kitts and Nevis between June 2015 to March 2016, of which at least US$79,394 was wired to a St. Kitts law firm to obtain passports and/or St. Kitts and Nevis citizenship for Kaplan and his wife.
Kaplan also sent US$1.1 million to his wife, Lisa Kaplan, a purported charitable foundation, and a corporation that Kaplan controlled; invested at least US$360,000 in an allegedly fraudulent scheme at the centre of a federal criminal indictment in Ohio; and made approximately US$1.8 million in Ponzi-like payments to other investors.
On May 31st 2016, the Office of Prime Minister Harris in a press release announced that the two St. Kitts and Nevis passports issued to the two illicit American actors, he had given St. Kitts and Nevis citizenship to between June 2015 and March 2016,were revoked.
