Major Concern Over Benchmark Investment

Julian Brown

The $5 million investment in a BISX-listed firm’s preference shares “is of considerable concern” to the liquidators of its largest client, who have warned that the deal will receive their “continued attention”.

Kevin Seymour and Kevin Cambridge, the PricewaterhouseCoopers (Bahamas) accountants, in their first report to the Supreme Court on the BC Capital Group liquidation, criticised the “substantial intermingling/commingling” of its assets by Alliance Investment Management, the wholly-owned subsidiary of BISX-listed Benchmark (Bahamas).

The liquidators alleged that this had helped to conceal the $27.564 million overdraft run up by BC Capital Group’s principal, Nikolai Battoo, who they claimed had benefited from $29 million worth of “questionable payments/withdrawals” from his scheme.

And the liquidators, in their March 28, 2013, report that has been obtained by Tribune Business, alleged that Alliance’s two principals were “unable to provide satisfactory explanations” for what were termed “inconsistencies”in investment statements sent to BC Capital Group clients.