In the ongoing case of US vs. Pedro Fort Berbel, a hearing was scheduled yesterday in Roseau. Presiding over the hearing was Judge Birnie Stephenson with Lennox Lawrence representing Kondwani Williams. In a just-released order from the court, Judge Stephenson has decided to set aside the order to freeze the accounts held by Kondwani Williams, Laurina Vidal and Dwight Horsford. How the United States will react to this development is an open question.

Judge Stephenson, affectionately known to us as "Birnie Crooks", has a lengthy reputation for delaying justice from being served. That is especially true when there is a suspicion that the outcome may not favour the government or its allies. She is currently sitting on a number of cases dating back years; the G.O.N. Emmanuel firebombing case, the suit against Thomson Fontaine, Linton v. Skerrit, the "Rapist Ministers" case, are just a few that she has sequestered under her judicial robe with no movement in sight. In light of how quickly she has moved to hear this case involving a close associate of the prime minister whose bank accounts were frozen, we are hopeful that she has dispensed with the lethargy and will now allow those cases languishing in her courtroom to proceed post haste.

Her decision to vacate the order freezing assets allegedly hiding in accounts owned by the three Dominican lawyers is likely to have a ripple effect in the Federal Court in Miami, where the US Securities and Exchange Commission is pursuing Ponzi schemer Pedro Fort Berbel; that is, unless a deal was struck that we're not aware of. You will notice that the order offers no details into the court's decision. Does that mean the parties came to an agreement that is being withheld from public view? Did the individuals involved agree to transfer all of Pedro Fort's money to the US government? If so, how will Mr. Berbel react to this?

We will continue to monitor this case as it proceeds through US Federal Court. If it turns out that the underlying details of Judge Stephenson's order ends up having a negative impact on the SEC's case in Miami, the US may look upon this decision as an attempt to protect Mr. Berbel at the expense of US citizens. How this would play out will be interesting. Will Dominica face US sanctions? We shall see in due time.

Local Attorneys Kondwani Williams, Laurina A. Vidal and Dwight Horsford will come face to face with top US prosecutors involved in the investigation of fraudster Pedro Fort Berbel on Monday. Senior Trial Counsel Wilfredo Fernandez of the US Securities and Exchange Commission will be in Dominica in response to a judge's order to attend a hearing in Roseau at 9:30am. Mr. Fernandez will likely be accompanied by his assistants.

We can speculate that the hearing will most certainly center around the US freezing bank accounts belonging to Mr. Berbel held by Messrs. Williams, Vidal and Horsford. Readers are aware that the US initiated this action to protect its citizens from a Ponzi scheme operated by Berbel. Berbel is being sued in Miami Federal Court by the SEC.

MiTC has come to learn that the family of Mr. Williams is extremely concerned about the situation he has found himself in. Our correspondent Lizzy, who is still on island, reported to us that the family is highly agitated and is concerned about the possible ramifications. Ms. Vidal is said to be nervous as well.

Last month, December 22nd, attorney's representing Berbel in Miami filed a Motion to Dismiss the SEC's case on several grounds including the assertion that the court lacks jurisdiction due to the extraterritorial nature of the transactions involved as stated in the Complaint. The government needed to file a response to this Motion today.

This afternoon, the SEC filed a Request to extend the time needed to respond to the Motion to Dismiss. The Request was filed by Mr. Fernandez, citing some constraints he encountered while preparing his response as well as the judge's order from Dominica.

Mr. Fernandez will be heading to Dominica over the weekend and should be in court early Monday morning. We can expect a number of spectators around the court hoping to get a glimpse of the high stakes drama that will be unfolding in Roseau. We do not know which judge is handling the case but we certainly hope that fairness and rule of law takes precedence in the proceedings.

Commentary

As you can see, MiTC remains in the forefront in bringing you news that is of concern to all of us. We cannot explain the indifference displayed by the Dominica media when it relates to stories such as this. Mr. Williams' accounts have been frozen for quite a while, and this is well known in Dominica. We do not understand, however, why this remains a secret among the country's press corps. Are these media persons keeping silent just so that they can be part of the "boys club"? Are they afraid of losing access? The fact of the matter is that Roosevelt Skerrit has been able to perpetrate much of his high crimes and misdemeanors because of the silence of the press; or is it complicity? I say it's complicity.

A free press should not be afraid to tell the truth; in fact, our democracy depends on it. Former President Thomas Jefferson, one of the founding fathers of the United States, is quoted as saying; "No government ought to be without sensors; and where the press is not free no one ever will". Our local press, DBS, Dominica Vibes, Dominica News Online, Kairi News, have all let down our democracy. Our media persons, they too have all let down our democracy. They are just as culpable for the malfeasance of Skerrit and his gang as any member of that gangster squad. They have traded our freedoms for access.

"He who would trade liberty for some temporary security deserves neither liberty nor security". This quote, attributed to Benjamin Franklin, surely applies to us. We know he was not referring to Dominica, but he might as well have.

CL

Kondwani Williams, a member of our all-important Electoral Commission and son of former President Eliud Williams, has been implicated in a massive corruption scheme perpetrated by Spanish fraudster Pedro Fort Berbel. You will recall in February, MiTC made you aware of the existence of Mr. Berbel in Dominica ("Introducing Pedro Fort Berbel"). Berbel, thanks to Roosevelt Skerrit, has been residing in the Mero area at a house on the Cuba road. He has been running from Spanish and European authorities for his alleged involvement of defrauding over 20 million Euros from investors in a Ponzi scheme he operated. He is also known to shuttle frequently between Dominica and Columbia, where is has assets. The US government has now come knocking on the door.

In a recently unsealed Complaint filed in US District Court in Miami, the Securities and Exchange Commission (SEC), the arm of the United States government that regulates companies and protects investors, has sought Injunctive Relief against Pedro Fort Berbel and companies he owns in Florida. The complaint states that Berbel, though a Ponzi scheme, defrauded approximately US$38 million from more than 150,000 investors between July 2014 through February 2016. The scheme involved the sale of fraudulent investments called "guaranteed plans" and "advertising packs" on Berbel's MLM Shop and The Business Shop websites, and "shares", "Ad Packs" and "Ad Credit Packs" on Berbel's Fort Ad Pays website.

Through his Florida companies "Fort Marketing Group LLC", f/k/a "Fort Investments Group LLC", Berbel is accused of diverting millions of investors funds for his own use, including at least US$1.25 million to purchase a private home in South Florida. The complaint also states this;

The complaint does not give further details as to what attorneys are involved but we at MiTC have an inside track into the Federal judicial system and we were able to retrieve further documents relating to this SEC action.

In a subsequent filing, the SEC requested that all assets held in the name of Berbel and his co-conspirator Sibades be frozen, including National Bank of Dominica account number 615000074 in the name of Kondwani Williams, and Royal Bank of Canada Dominica bank account number 1011543 in the name of Kondwani Williams and Dwight Horsford. The SEC also demands that all assets be repatriated to the United States within 20 days of the order. All of this would have come as a surprise to Berbel and Kondwani.

In filing its complaint, the SEC ensured that any hint of this action was kept secret from Berbel and his accomplices. In addition to filing the complaint under seal, the SEC also requested that its forfeiture request be kept away from the parties because doing so may cause the defendants to further dissipate the assets before the court motion is heard.

In a separate, detailed Memorandum of Law filed in support of its Emergency Motion for Asset Freeze, the SEC alleges that Berbel diverted approximately $4.3 million of investor funds into personal bank accounts held in his name as well as family members, including $150,000 into his personal account at the National Commercial bank of Dominica. It said that he used more than $737,000 in private jet charters. Berbel bas been seen on occasion flying in and out of Melville-Hall on a private jet. The Motion goes on to detail the following;

It is important to note that the actions by Kondwani Williams, Dwight Horsford and Laurina Vidal could form the basis for a very substantial case of Money Laundering, or at the very least, Conspiracy to Commit Money Laundering. Will the Feds go down that route we don't know, but we do know that they have that option. This Complaint is the first in a series of actions by the SEC because the case may proceed to trial. The court has granted an extension of time for Berbel and his co-defendants to respond to the complaint; the last day is December 22, 2017.

The investigation into Berbel by the SEC was spearheaded by a talented California attorney named Sajjad Matin. It is as a result of his investigation that we know of the involvement of Kondwani and his associates in Berbel's ponzi scheme. It is clear to us that the preliminary evidence presented here by Attorney Matin could very well be used to form the basis of a case of Conspiracy to Commit Money Laundering against Kondwani in Dominica, as well as possibly the United States. Is Kondwani under investigation as well? Do the US authorities have in their possession a sealed indictment on Kondwani but are simply waiting for him to set foot on US soil before revealing their case? We do not know, but time will tell. It would be instructive to remember that former Monfared business partner, Reza Zarrab, now in custody in New York and is reportedly cooperating with the FBI, was arrested in Florida when he came to visit Disneyland with his family on vacation. Zarrab had been under a sealed indictment, and had no clue until he had handcuffs placed on his wrists.

Last week US authorities were able to freeze Kondwani's accounts listed in the complaint. The SEC's filings indicate that they considered using the services of several attorneys in Dominica to effectuate the service but were limited in finding an attorney who was not tainted by Berbel. The SEC states that several attorney's they looked at were at one point used by Berbel in his transactions, implying that the SEC considered them potentially tainted. They were able to find one, however, who we will not name. We would like to thank that attorney; it's good to know that not all of our lawyers have been dipping their hands in the vat of corruption.

What's next for Kondwani Williams, Laurina Vidal and Dwight Horsford? We're not sure, but we wouldn't doubt that they may be picked up by US law enforcement some day to answer for their dealings with Pedro Fort Berbel. Will they cooperate with US law enforcement, providing extensive details into Berbel's operations in Dominica? Will they disclose, if any, connections and business dealings with any member of the Dominica government in exchange for leniency or avoidance of jail time in a federal penitentiary should any prosecution arise out of this case? Or will they keep their mouths shut out of fear, and instead, accept the consequences of their actions? We will see.