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Kinay lawsuit dismissed in U.S., still pending in TCI PDF  | Print |  E-mail
Written by Richard Green/   
Thursday, 29 March 2012 16:07

A U.S. federal judge has dismissed a lawsuit against Dr. Cem Kinay over his stalled Dellis Cay project alleging “massive fraud” because the case should be heard in Turks and Caicos Islands courts.

“At the end of the day, this case involves a real estate investment in TCI, TCI-based corporations, the TCI government, and a second, parallel litigation taking place in the TCI courts,” U.S. District Judge Richard J. Sullivan ruled March 27, dismissing the case in the U.S. District Court in Manhattan, N.Y.

In January 2011, 20 plaintiffs from New York filed the U.S. lawsuit claiming that they lost at least $50 million as Dellis Cay villa purchasers in the luxury resort project.

Construction began on Dellis Cay in June 2008 and lasted for just over a year. The project was put into receivership in October 2010 by lender Trinidad and Tobago Unit Trust Corp. (TTUTC), which was accused in the lawsuit of aiding and abetting Kinay and partner Oguz Serim in committing fraud on purchasers.

Kinay and TTUTC were accused of hiding from purchasers the fact that the project’s $62 million loan required a $47 million lump sum payment after two years at an interest rate of 15 percent. That loan gave Kinay more time to bilk purchasers and essentially sold the island to TTUTC, the N.Y. suit claimed.

Both TTUTC and the Mandarin Oriental Hotel Group International Ltd., which was enlisted to manage the Dellis Cay hotel, were accused of providing supportive letters for Kinay to use to comfort purchasers when both knew the project was doomed.

Kinay, TTUTC, Mandarin and other defendants have denied the allegations.

In June and July 2011, TTUTC and Mandarin were dropped as defendants in the U.S. case but are being sued in the TCI Supreme Court where the case is pending, Sullivan noted.

In making his decision, Sullivan said the case should be heard in the TCI because “defendants apparently are in the midst of defending against other lawsuits and criminal investigations in TCI based on similar facts and allegations.”

With the dismissal of the U.S. lawsuit, Kinay issued a lengthy press release denying all allegations, saying he is victim of TCI politics and that he will fight all claims against him. He also says he is still trying to save the Dellis Cay project.

"I have never bribed anyone in TCI, or elsewhere," Kinay said. "I have offered full cooperation to the Commission of Inquiry, and later to the SIPT. I have provided them with hard evidence of our innocence. All our companies were audited by one of the world’s top audit firm."

Todd Soloway, a lawyer for the defendants, told the fp: "Our clients have every intention of pursuing Mr. Kinay and his co-conspirators and will not stop until each and every one of them is brought to justice. We have every intention of pursing these claims in the Courts of TCI – a locale where Mr. Kinay complained he could not get a fair trial. Unlike Mr. Kinay, our clients have full confidence that the TCI Courts will hold the defendants accountable for their actions."

Click here to read the dismissal order

Click here to read Kinay's statement

Click here to read the lawsuit that was dismissed




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