A $700 million resort developer told The Tribune that the project's progress has been "severely impeded" by a series of "scurrilous attacks" mounted against it, plus the "confusion" caused by a rival hotel development with a similar name that appears to be claiming land it already owns.

Michael Farrant, chief operating officer for Montana Holdings, developer of the Rum Cay Resort Marina, said the net effect of these challenges had been to deter potential investors in both the company itself and the residential, real estate component of the development.

Claims that Montana Holdings did not have good title to the 897 acres it owns for the project had been disseminated around the world via the Internet and other communication forms, Mr Farrant said, in addition to even wilder allegations.Dismissing all the allegations as totally untrue, Mr Farrant said they were part of a concerted campaign to undermine Montana Holdings' investment in the Bahamas, and if possible, drive it off Rum Cay.

He said a prime example of what Montana Holdings was having to endure was a lawsuit filed in the 11th Judicial Circuit for Dade County, Florida, in November 2007. 'That lawsuit, which has never been served on Montana or any of its executives, was purportedly filed on behalf of Island Premier Resorts.

The lawsuit levied a number of serious accusations against Montana Holdings. Yet Island Premier Resorts, a Bahamian company, has since filed a lawsuit of its own in the same court against Joel Williams, a former partner in the company, who it is accusing of initiating the action against Montana Holdings in its name, and without any authority.

The December 5, 2007, action against Williams alleged that the action he caused to be filed in Island Premier Resorts' name contained "numerous false representations against, among others, Montana Holdings, which is in fact a potential business partner of Island Premier Resorts."

Mr Farrant told The Tribune that copies of this lawsuit had been circulated the instant it was filed to potential investors in Montana Holdings and the company's real estate clients.He explained that both Montana Holdings and Island Premier Resorts felt they had an option on some 300 acres of land on Rum Cay, lying adjacent to the western boundary of Montana Holdings' existing project. The estate of Trevor Dorsett, a former Rum Cay resident, is presently attempting to acquire that land, but rather than engage in a legal battle over it, Montana Holdings and Island Premier Resorts had been attempting to reach a partnership agreement where they could work together. As a result, the purported 'Island Premier Resorts' lawsuit came 'out of the blue'.

Mr Farrant told The Tribune: "The scurrilous attacks on Montana, Montana's title to its land, on John Mittens [Montana's chairman] personally, and the Bahamas as a jurisdiction, have severely hindered the speed with which we have got to where we are, Montana has' had to spend a great deal of time fighting these claims against us that are false." Pledging that Montana Holdings would "aggressively fight" any further attacks launched on its name or the project, he added: "Montana will fight in any country, through its legal system, scurrilous attacks against its reputation and project.

"Montana will proceed with its project. We're here to stay. We will beat this. We will do this development and fight this.
"If you're an investor, whether it be an investor in a corporation or an investor in purchasing land, and see a reputable company have scurrilous attacks mounted against it, then it is far easier to choose a competing jurisdiction for their investment. It's going to take investors years to return to an environment where they see investors being attacked. The Bahamas loses out."

Montana Holdings has landed in the proverbial 'hornet's nest', for ever since Rum Cay was opened up to the outside world through the landing strip extension at the airport, the island has become a magnet attracting numerous foreign real estate speculators. A number of them have been clearing land in preparation for its resale to foreign, home buyers seeking second homes in the Bahamas. Yet questions have been asked as to whether many of these speculators have clean title to the land they are offering for sale, especially that which has its roots in the estate of the late Florida attorney Effie Knowles. As a result, there is a risk that foreign purchasers may end up with land that does not have good title, something that could seriously injure the Bahamas' reputation as a tourism and investment destination, and place to do business. There are numerous actions in the Supreme Court at present relating to land disputes on Rum Cay.

Given the general situation on Rum Cay, it is not inconceivable that the attacks being mounted against Montana Holdings' project have their roots in the land speculation rush, and a desire to obtain the site the company is working on.

Meanwhile, Mr Farrant said another element impacting Montana Holdings' project was the "confusion" caused by a rival project that has yet to be approved by the government. That development, Rum Cay Club, Marina and Spa, had a similar name to Montana Holdings' project, Mr Farrant said, and according to its web-site was purporting to be located on a site that was not only next to his company's land, but also incorporated the property on which Montana's marina resided.

"It's confusing to investors," Mr Farrant told The Tribune, "especially in this economic climate. All they need is a small reason to delay."

He added that Montana Holdings' project had a signed Heads of Agreement with the Bahamian government, and the title to its land – derived from a certificate of title obtained by the Heyser family – had been confirmed as having good roots by both the Supreme Court and its attorneys, Alexiou, Knowles and Co.

In addition, Montana Holdings had received the necessary sub-division approvals from the Ministry of Works, and Bahamas Environment, Science and Technology (BEST) approval on the marina flushing.

The 2,250 acres on which the rival Rum Cay resort project will be located is purportedly owned by a company called Newport Harbour Ltd. This firm is beneficially owned by Billy Wayne Davis, a former US senator who has been among the speculators to make their way to Rum Cay.The Tribune has seen court documents that confirm that at least some of the land Mr Davis and Newport Harbour purport to own is in dispute. Yet this has not stopped him linking up with Fred Bernstein, a US real estate developer, to create the Rum Cay Resort, Marina and Spa.

In addition, Newport Harbour and Mr Davis also appear to have partnered with a Bahamian company and several Bahamians for their Rum Cay venture. The website of Prospero Minerals Corporation, seemingly a company listed on the US over-the-counter bulletin board, announced on December 12, 2007, that it had entered into an agreement through its major shareholder, Cavitation Concepts, to partner with Mr Davis and Mr Bernstein on the project.

Prospero Minerals' website lists as the company's chief executive and secretary, Etoile Pinder, who worked as a health financing specialist on the former PLP government's National Health Insurance (NHI) project. Also named as a Prospero Minerals director by the company's website is former Bahamas Electricity Corporation (BEC) general manager, Bradley Roberts.

Finally, Prospero Minerals' chief financial officer is named as businessman Hubert Pinder, brother of former PLP MP, Philip Pinder. Mr Pinder and Cavitation Concepts came to The Tribune's attention in 2003, when they attempted to raise $2 million from Bahamian investors via a private placement.

This effort was abandoned after the Securities Commission intervened and forced Mr Pinder to pull his plans on the grounds that he had made a private placement public by promoting it through the media. The Prospero Minerals web-site touted big numbers for the Rum Cay resort project, talking of a total $300 million investment, with an initial outlay of $100 million that was backed by Cavitation Concepts' assets.

In addition, Cavitation Concepts on the same date also acquired an entity called the Bahamas Development Company for just over $48 million, a deal financed by Prospero Minerals shares. Bahamas Development Company allegedly owned 505 acres at Buccaneer Bay in Cat Island, plus an adjacent 460 acres. Another of its landholdings included the 3,500-acre Chickcharnie Channel in Andros.

Source: The Tribune