Danny Was Paid $6m For Bungled Accounts Report

DANIEL Ferguson was reportedly paid $6million for his supposed "forensic audit report" in a case involving a row over $100million between two feuding brothers.

Expats Rami and Amir Weissfisch reportedly paid $3million each to settle the $6million accounting bill submitted by Ferguson in their case.

Justice Anita Allen has ruled that Ferguson's report and findings on the accounting books in the case "were inadequate and incomplete".

PLP MP and lawyer Philip "Brave" Davis, who represents Rami Weisfisch, has appealed Justice Allen's ruling on the accounting matter.

Rami Weisfisch's lawyers feel that Justice Allen should recuse herself from the case on the grounds of bias. But in her ruling Justice Allen rejected claims of bias and denied the request for her to step down from the case. Michael Scott, who represents Amir Weissfisch, 49, has reportedly submitted to the court a forensic audit conducted by a leading firm of accountants in London.

Justice Allen's ruling also questioned the handling of the case by Justice John Lyons. Australian-born Justice Lyons recused himself from the case in Sept 2008. Lyons appointed Ferguson as auditor in mid-2007. At the time Justice Lyons was dating Ferguson's sister Shonell Ferguson, a former Olympic athlete. Lyons instructed Ferguson to hire a qualified team of forensic auditors to compile his report.

Lyons set Ferguson's fee at $1,000 an hour. Ferguson said he spent 50 hours a week on the report - that's $2.5million-a-year. Ferguson also hired several others to assist him, including his sister Shonell, at a reported $500-an-hour. In her ruling, Justice Allen said that Ferguson had failed to hire forensic auditors, as ordered by Justice Lyons. Ferguson admitted that he did not have the experience or qualifications to conduct a forensic audit. As a result of the scandal, Ferguson is expected to resign as President of The Bahamas Institute Of Chartered Accountants (BICA). Rami Weisfisch, 62, donated big bucks to the PLP's campaign in 2007. Rami and Amir were 50-50 partners in the Metals Resources Group (MRG).

Originally published in The Punch, 30 March 2009.

Ex-A/G Wells urges probe of judge's conduct

Former Attorney General Tennyson Wells has called for an investigation into the conduct of Supreme Court Justice John Lyons for appointing the brother of a woman with whom he had "more than a friendship" to prepare a financial report in a civil case.

Justice Lyons' appointment of accountant Daniel Ferguson was harshly criticised by Senior Justice Anita Allen in her ruling in the case from which Senior Justice Lyons had stepped down. Mr Wells said that PM Hubert Ingraham, A/G Michael Barnett and Chief Justice Sir Burton Hall should implement what investigative process is required into Justice Lyons' actions in order to restore confidence in the judiciary.

"If what is stated in the press is true, then I believe that the PM is duty bound to cause an investigation to be taken with a view to having that particular judge removed for cause. Otherwise the judiciary will be made a laughing stock."

Originally published in The Punch, 27 March 2009.

Appointment Made by Judge Lyons Criticized

Senior Justice Anita Allen has heavily criticized the appointment of an accountant with little experience, who was chosen by Senior Justice John Lyons to prepare a financial report in a civil case.

In a ruling delivered yesterday, Justice Allen questioned the integrity of the report that was prepared by Daniel Ferguson, who is the brother of a woman who "has more than a friendship" with Justice Lyons. She criticized the report, saying it was "not sufficiently thorough and complete to provide much assistance to the court".

Ferguson was selected by Justice Lyons in October 2007, according to the judgment. It was also disclosed in the judgment that Ferguson's sister was part of the team hired by him to do the work.

The ruling noted the accountant said he worked an average of 50 hours a week which amounted to $50,000 a week or about $2.5 million per year for the work.

Ferguson was directed by the judge to "put together the best team you can."

Justice Lyons stepped down from the case in September 2008 on the basis that he "did not have time" to hear the matter.

Justice Allen, who is now hearing the case, said in her ruling that she "had serious concerns about the appointment of the accountant [Ferguson] and, as a consequence, the integrity of the report."

Ferguson's mandate — based on the findings of Justice Lyons that the two parties in the civil matter had operated a business pursuant to a partnership of honor between 1992 and March 31, 2000, and agreed to distribute the profits 50/50 — was to determine the amount of the profits, and make other determinations.

Lawyers Alan Steinfeld, QC, and Michael Scott, who appear for the unnamed party identified in the judgment only as 'A', said that "Mr. Justice John Lyons had literally forced the appointment on them, threatening to walk out of court if they did not agree the appointment".

Justice Allen said, "The transcript of October 11, 2007 is replete with references to the judge threatening to leave the case if the appointment was not agreed and, at one point, got up to leave when counsel begged him to have a seat. The judge was asked by one counsel if it was an ultimatum, to which he responded 'you bet it is'."

Justice Allen detailed the evidence regarding Ferguson's experience and qualifications during a hearing to determine whether she should approve his report. That hearing began on March 16.

Justice Allen said, "On the first day of the hearing before me, the accountant was asked and denied that he had a social relationship with Senior Justice Lyons. On the second day of cross examination, he was asked whether a relative of his had any relationship with Senior Justice Lyons to which he responded that he didn't get into his sister's business, but he knew she and the judge were friends. He also admitted that she was part of the team employed by him to do the work."

Justice Allen said it was at this point that she made the connection between the accountant and information in the public domain that Justice Lyons had "more than a friendship with a woman, who up to that point I did not know was the accountant's sister".

While before Justice Allen, Ferguson admitted that he became a certified public accountant in 1985 and he had participated in two forensic accounting exercises in his career. Ferguson said that he "read up on the subject after his appointment to understand his engagement and made inquiries of Deloitte and Touche and PriceWaterhouse to assist him with the preparation of the necessary program and the choice of his team. He also said he had consultation with the former accountant Ellison and his partner in London."

It was also revealed that Ferguson's last auditing experience occurred before he became a qualified accountant. He also agreed that he had never been certified an account. Ferguson also admitted that the only skilled members of his team "were himself and a part-time accountant".

Justice Allen continued, "The accountant admitted he had only gathered the documents and put them into piles and did not examine them to see what was missing for his second interim report and that his only attempt to identify them was in the final report...He also agreed he had made no effort to compel the production of any missing relevant documents by reference to the Court. He said he did not determine what was there and what was missing."

Justice Allen determined that the accountant's report was not "sufficiently thorough and complete to provide much assistance to the court".

As a result of this finding, Nicholas Lavender, QC, who appears for the party identified only as 'D', asked Justice Allen to recuse herself from hearing the matter. The application for recusal has been refused.

"Having ascertained all of the circumstances which have a bearing on the suggestion that I am biased and having asked myself whether a fair-minded observer informed of all of these circumstances would conclude that there was a real possibility that I was biased, the resounding reply is 'no,'" she said in her ruling. "I have absolutely no doubt that I can objectively decide the issue before me."

Originally published in the Nassau Guardian, 25 March 2009.

And the result has been a long, drawn-out fiasco with the Baha-Mar $2billion project now on hold "indefinitely". PM Hubert Ingraham may be making the same mistake as Christie in dealing with foreign investor Rami Weisfisch. Israel-born Weisfisch is in talks to buy the Four Seasons hotel and casino at Emerald Bay in Exuma for $130million. If he seals the deal, Weisfisch will reportedly put down less than $5million. But Weisfisch also has no experience of developing resorts. What's more, Weisfisch, 61, reportedly turned down then-PM Christie's offer to do the $2billion Cable Beach project. Weisfisch is considered to be scandal-tainted by the controversial purchase of cobalt from the Zambian Government by his company, Metals Resource Group (MRG). A Zambia Parliamentary Inquirty into corruption concluded that the cobalt sale to MRG had cost the Zambian Government $60million. Weisfisch's business holdings are now registered as a trust held by PLP MP and lawyer Philip "Brave" Davis. Weisfisch donated big bucks to the PLP election campaigns in 2002 and 2007. He received permanent residency here shortly after the PLP won the 2002 election. Weisfisch is now a tax exile from America. He gave up his U.S. residency status a couple of years ago. The IRS, or U.S. taxman, is reportedly looking into Weisfisch's business affairs. The IRS is checking to see if Weisfisch has paid all taxes on his world-wide business dealings over the last 20 years. Weisfisch reportedly does not travel to the U.S. any more. HIs wife and children live in the U.S. He has a $12million manion in Palm Beach. Now long ago, he bought land by the sea in the Delray Beach area on the understanding that he would develop it into a resort. So far, Weisfisch has done no development. The land stands vacant.

He reportedly bought the land at a bargain price after talks with his friend, the Mayor of Palm Beach. So, like Izmirlian, Weisfisch is sitting on prime land which he has failed to develop as allegedly agreed. Such investors usually come out of this type of situation on top. They sell the land that they bought at a cheap price for several times more than they paid for the real estate.

This is known as "flipping" an investment to make a profit.

Presumably, Hubigetty gets the picture. He would be wise to tread carefully with PLP backer Weisfisch. After all, the PM rejected Weisfisch's first bid to buy Emerald Bay. But now that hte PM is desperate for foreign investors to boost the slumping economy, he's talking again to Weisfisch on Emerald Bay.

Originally published in The Punch, 6 August 2008.

Scandal-Tainted PLP Expat in Bid to Buy Emerald Bay

A RICH expat who donated big bucks to the PLP's election campaigns in 2002 and 2007 is in talks to buy the Four Season hotel and casino at Emerald Bay, Exuma.

Scandal-tainted Rami Weisfisch is reportedly set to purchase Emerald Bay for about $130million. But Weisfisch will reportedly put down less than $5million if he manages to seal the deal.

Weisfisch, 61, is an Israeli. He was granted permanent residency shortly after the PLP won in 2002. He lives in Bay Roc, Cable Beach.

The wily Weisfisch has forged business relationships with FNM and PLP lawyers to help him acquire Emerald Bay. He is reportedly represented in the deal by former FNM Cabinet Minister Sir Orville Turnquest, Wayne Munroe and PLP MP Philip "Brave" Davis. Weisfisch has invited all three lawyers, plus ex-PM Perry Christie, to his daughter's wedding in Paris next month. He will reportedly pay all their travel expenses.

Christie has been using his influence to try to persuade PM Hubert Ingraham to approve the sale of Emerald Bay to "PLP expat" Weisfisch. But observers are concerned at Emerald Bay going to Weisfisch. They view him as an unsuitable investor. He has no background in operating resorts. Weisfisch reportedly has his eyes on Emerald Bay's casino license. He feels the licence could become very valuable if he revamps Emerald Bay into a profitable resort. Emerald Bay reportedly owes Government big bucks in casino taxes. Weisfisch is a metals trader. He is President of Metal Resources Group (MRG). Weisfisch and MRG were caugh up in a Parliamentary Inquiry into alleged corruption in Zambia, East Africa. Zambian MPs alleged that a "fixed-price" sale to MRG of 1,900 tonnes of cobalt had cost the Zambian Government $60million.

Weisfisch was not accused of any wrongdoing. But many felt that he and MRG were badly tainted by the Zambian cobalt scandal.

Originally printed in The Punch, 31 July 2008.