The ousted original developer of the $4.2b Baha Mar integrated resort in the Bahamas has filed a $2.25b fraud lawsuit against the property’s Chinese contractor.
On the day after Christmas, Sarkis Izmirlian’s BML Properties filed a claim in New York State Supreme Court, seeking $2.25b in damages from the property’s principal contractor, China Construction America (CCA), the American subsidiary of the Chinese state-owned China State Construction Engineering Corp.
Izmirlian’s Baha Mar Ltd was deposed as Baha Mar’s developer in 2015 after the company filed for Chapter 11 bankruptcy. Izmirlian had long accused CCA of failing to meet development timelines, and the project was ultimately acquired by Hong Kong conglomerate Chow Tai Fook Enterprises (CTFE).
As detailed in the Bahama Tribune, the suit filed on Tuesday accuses CCA of pulling off “one of the largest construction-based frauds in this hemisphere.” Among the allegations made in the suit is CCA purposely deceiving BML regarding the progress of construction, while earning “tens of millions, if not hundreds of millions” of dollars via inflated billings and uncorrected defects.