ECNETNews, New York, NY, Mon. Oct. 14, 2024: A civil lawsuit has been filed in the U.S. District Court for the Southern District of Florida, alleging that Genting Americas has misused Resorts World Bimini in the Bahamas as a “financial wasteland” to disguise fraudulent practices.
The lawsuit, initiated by RAV Bahamas, claims that the resort has been employed to artificially inflate profits and distort debt-to-equity ratios across Genting’s operations in the U.S. and internationally.
Resorts World Bimini, Bahamas
RAV Bahamas, associated with the Capo family in Florida, originally acquired over 700 acres on North Bimini in the late 1990s with aspirations to develop a thriving vacation hotspot. By 2011, the Bimini Bay Resort was established, featuring various villas, marinas, and recreational facilities. In 2012, RAV entered into a partnership with Genting to enhance the resort by adding a casino, leading to the creation of BB Entertainment (BBE). RAV contributed 20 acres of land, and Resorts World Bimini officially opened in 2013, showcasing a 10,000-square-foot casino alongside a 305-room hotel.
However, RAV asserts that they have not received any profits from this venture, claiming that Genting Americas controls the financial operations while imposing over $885 million in debt on the company. According to the lawsuit, as of December 2022, BBE’s liabilities exceeded those of Genting Malaysia and its extensive network of 150 subsidiaries. RAV alleges that Genting has concealed this debt within consolidated financial statements through ambiguous expense categories and obstructed access to financial records or independent audits.
The lawsuit contends that Genting’s intricate corporate structure, marked by numerous subsidiaries, is intentionally designed to hide financial misconduct. RAV is pursuing $600 million in damages, stating that Genting’s actions have systematically undermined their investment and potential profitability from the project.
