IFSA: SVG’s no safe haven for criminals

The recent sentencing of an Atlanta, Georgia man with ties to St. Vincent and the Grenadines for fraudulent insurance schemes, does no damage to the reputation of this country as a reputable offshore market.{{more}}

In August 2006, William A. Ledee III pleaded guilty to using false financial statements in connection with his business, Professional Liability Insurance Company, a St. Vincent and the Grenadines insurance company.

The charges relate to a scheme to defraud doctors and other health care providers located throughout the United States, by selling medical malpractice insurance policies issued by a fictitious insurance company that pretended to be an offshore company licensed here and operated out of Bermuda.

Ledee, 64, was sentenced earlier this month to five years, 10 months in federal prison with no chance of parole. He forfeited to the US Government more than US$10 million in cash and real estate, including three homes in Georgia, South Carolina and Florida, and an office building in Georgia.

Acting Executive Director of the International Financial Services Authority (IFSA) Dougal James, said that the fact that Ledee was using a company registered in this country for illegitimate means is a rare case, and that St. Vincent and the Grenadines is still safe and as well regulated as any other in the world.

James stated that IFSA was well informed by the US authorities after the arrest of Ledee, and that Ledee’s dealings were not restricted to our jurisdiction, but spanned a number of jurisdictions, including Bermuda and the United Kingdom.

He admitted that the Professional Liability Insurance Company had indeed been registered here, but had been struck off the register and gazetted.

The main reason for striking a company off the register is for non payment of fees or if the company no longer wishes to be registered.

IFSA was also assisting the authorities in their case against Ledee, but were not required to testify after he pleaded guilty to the charges.

Before a company can be registered in a jurisdiction, stringent background checks are made, and an international media sweep is conducted, as was the case with Ledee. James did want to speculate if Ledee had turned crooked after registering in St. Vincent.

He reiterated that this country suffered no adverse repercussions from the investigations, since we cooperated fully with the US authorities, and that our laws to regulate against money laundering are as good as in any other jurisdiction.