St Kitts Citizen Under US$50M Fraud Investigation had been Courted for Investment in CUB

As the sub-region’s banking system is being scrutinized in connection with a multi-million US-dollar fraud emanating out of St. Kitts and Nevis, Antigua and Barbuda residents are curious to learn which locals might be embroiled in the matter.

According to media reports, Paul Bilzerian — a former US national who now holds citizenship in St. Kitts and Nevis and Armenia – was charged last Thursday, June 18, with financial crimes assessed at US$50 million, along with his wife, Terri Steffen, and associate Gregory Gilpin-Payne.

Several locals recall that, a few years ago, Bilzerian had been persuaded to invest in the Caribbean Union Bank (CUB), while others believe he had been asked by the Browne Administration to purchase the institution outright.

However, they all recollect that a quiet attempt to transfer shares reportedly owned by Gaston Andron Browne III was thwarted by another shareholder, who challenged the decision purportedly made at a shareholders meeting at which he had been present.
Bilzerian reportedly withdrew from the deal after the challenge was leaked, sources said then; but whether a new arrangement was entered into remains unknown.

CUB has been majority owned by the Government of Antigua and Barbuda since 2016. Recently, Finance Minister Gaston Browne announced that a sale of its 80 percent stake – to an international banking conglomerate – is under consideration.
With this deal, an injection of US$100 million is expected to boost the bank’s regional capacity, reports said.

The announcement surprised many in the industry -- not only because Browne has often boasted about the bank’s profitability, but because he vowed – following the Scotiabank-sale debacle – never to allow any local bank to be acquired by a foreign entity.

Meanwhile, since Gilpin-Payne is alleged to be a dual citizen of Antigua and Barbuda who resides and operates the Bilzerian network here, reports claim he is being investigated by the Police to determine whether any local banks, including CUB, were used to channel illicit funds.

However, some observers say they have little faith in the capacity of the Police and the independence of the banking-oversight authorities.

They point to what they describe as the “murky” operations of the Global Bank of Commerce, an offshore institution that formerly shared links with CUB and was put under Administration recently.

They note that the Financial Services Regulatory Commission (FSRC) has since given that bank permission to recapitalize in what depositors have called a “covert” operation that could, reportedly, be linked to a disgraced Asian investor.

Accordingly, the observers believe that only a fully independent investigation into the alleged Bilzerian fraud and money-laundering scheme would be credible.