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by pltm
(PLTM) - Bank of Asia (BVI) Limited, an offshore bank to be set up in the BVI, aimed at targeting the Asian market, is now in a court dispute following a lawsuit which was filed in the BVI High Court against founder, Carson Wen and his wife, Julia Yuet Shan Fung.
Co founder and former partner, United States businessman Chad Holm and FH Investment (VI) Limited filed the claim on January 18, 2017 against Sancus Financial Holdings Limited, which is domiciled in the BVI. It is over attempts to establish the new bank, alleging breach of contract and breach of fiduciary duties.
As records show, Bank of Asia BVI Ltd was in March 2016 issued conditional banking license by the regulator, the BVI Financial Services Commission (FSC). Premier and Finance Minister, Hon. Dr. D. Orlando Smith has also stated that the bank should be operational early this year.
Founder, Wen is a prominent Hong Kong businessman, lawyer and politician.
In depth details on the lawsuit is not fully known as only the claim form is available for public perusal by the BVI High Court Registry; however; BVI Platinum News understands that the filing generally relates to a dispute over the ownership of the bank.
Information suggests that Holm is claiming that there were a number of shares that were agreed to be transferred from Sancus Financial Holdings Limited to a new company, FH Investment (VI) Limited by Wen, but this never took place.
The US businessman is alleging that by them (Wen and wife-directors) not transferring the shares to the new company, they currently control all of the shares, gaining full financial benefits to the detriment of the shareholders who are in the new company, who they were supposed to protect as directors.
"It's to basically be compensated for the loss both that (Holm) hasbincurred, and the company FH Investment has incurred as a result of their failure to complete the deal. That is all that is being sought," a source told BVI Platinum News.
BVI Platinum News understands that the damages being claimed could amount to US $80M.
Time will uncover whether this lawsuit will have a negative impact on the bank being able to commence operations this year.
In October of last year during a visit to Hong Kong, Premier Smith said that the launch of the bank is progressing well.
"The bank will be launched early in the new year, with the most advanced cutting edge technology readily dedicated to fulfilling the substantial market to the benefit of the BVI and incorporate business companies," Premier Smith had stated.
At the time, it was stated that Bank of Asia BVI Limited was currently finalising its technology platform as well as firming up its timeline for roll out.
"They (operators of Bank of Asia) are working very steadily, and looking forward to establishing themselves here. And, in fact, that bank will help us a great deal as far as our financial services are concerned, because it will be able to take care of the problem that we had – our clients not being able to have bank accounts opened," Premier Smith previously stated.
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