News Americas, New York, NY, Mon. October 14, 2024: A civil lawsuit filed in the US District Court for the Southern District of Florida today, October 14, accuses Genting’s US arm, Genting Americas, of using Resorts World Bimini in the Bahamas as a “financial wasteland” to hide fraudulent activities.
The lawsuit, filed by RAV Bahamas, alleges the resort was used to artificially inflate profits and manipulate debt-to-equity ratios at Genting’s US and international projects.
Resorts World Bimini, Bahamas
RAV Bahamas, owned by the Florida-based Capo family, originally purchased over 700 acres in North Bimini in the late 1990s with plans to create a vibrant vacation destination. By 2011, they had developed the Bimini Bay Resort, with villas, marinas and recreational areas. In 2012, RAV partnered with Genting to expand the resort with a casino, forming a joint venture, BB Entertainment (BBE). RAV transferred 20 acres of land for the project, and Resorts World Bimini officially opened in 2013, with a 10,000-square-foot casino and a 305-room hotel.
However, RAV claims they have not received any profit from the venture, claiming that Genting Americas controls the finances and has saddled the company with over $885 million in debt. The lawsuit said that as of December 2022, BBE’s liabilities exceeded those of Genting Malaysia and its 150 subsidiaries combined. RAV accuses Genting of hiding the debt in its consolidated statements through unclear expense categories and obstructing its efforts to review financial records or conduct an independent audit.
The lawsuit further alleges that Genting’s complex corporate structure, with multiple subsidiaries, was designed to hide financial irregularities. RAV is seeking $600 million in damages, alleging that Genting’s actions intentionally harmed their investment and ability to profit from the project.
