• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Wednesday 28 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

New York appellate court dismisses China Construction America’s appeal in US$1.6 billion Baha Mar fraud case

Ben Blaschke by Ben Blaschke
Wed 9 Apr 2025 at 05:59
China-owned contractor of Chow Tai Fook’s Baha Mar ordered to pay US$1.6 billion to original owner for “many acts of fraud”

Baha Mar Resort

39
SHARES
968
VIEWS
Print Friendly, PDF & Email

A New York court has dismissed an appeal by China Construction America, Inc (CCA) against a Supreme Court ruling in October requiring it to pay US$1.6 billion to the original owner of Bahamas casino resort Baha Mar for committing “many acts of fraud” in assuming control of the property.

According to information acquired by Inside Asian Gaming, the New York Appellate Division, First Department on Tuesday backed the Supreme Court’s ruling in favor of Sarkis Izmirlian’s BML Properties Ltd, which found that CCA was responsible for BML losing its entire investment by committing “multiple acts of fraud and breaches”.

Baha Mar has since 2017 been operated by Hong Kong jewelry giant Chow Tai Fook Enterprises, which also holds interests in Australia’s Star Entertainment Group and Vietnam’s Hoiana. Chow Tai Fook also has links to Macau concessionaire SJM via chairman Henry Cheng’s 10% stake in STDM.

The US$1.6 billion figure includes BML Properties’ US$845 million investment plus interest dating back to May 2014. BML said the judgment now stands at more than US$1.7 billion following this latest decision.

“We are grateful that the Appellate Court upheld Justice Borrok’s judgment, once again confirming that CCA’s multiple acts of fraud and breaches caused the Baha Mar project to miss its opening, resulting in the subsequent loss of our entire investment,” said Izmirlian.

“We are continuing in our efforts to aggressively enforce our rights against CCA, its parent China State Construction Engineering Corporation (CSCEC), their affiliates and all those who orchestrated the fraud, and look forward to collecting on their debt. We hope that they will come to their senses and enter into a rapid settlement to minimize the disruptions to their operations that have been caused by their actions.”

In response, a statement from a spokesperson for the defendants said, “We are disappointed in the appellate court’s decision, which is incorrect on multiple points of New York law.  It also ignores BML Properties’ own mismanagement of the Baha Mar project, which led to the losses suffered by CCA Bahamas, CSCEC Bahamas, the Bahamian government, subcontractors and workers. This is not the last word on this matter, and we intend to pursue an appeal of this decision to the New York Court of Appeals.”

The case stems from Izmirlian’s decision to seek funding for Baha Mar – first envisioned two decades ago – via China during the midst of the global financial crisis in 2008. He found success to the tune of US$2.45 billion through China’s Exim Bank, however the bank also stipulated that CCA must be general contractor and with the right to import up to 8,000 Chinese construction workers, providing in the process a significant boost to China’s domestic economy. On top of Exim Bank’s contribution, CCA chipped in US$150 million and BML Properties US$845 million.

The resort had initially been slated to open in December 2014, but after missing the opening and a series of later dates throughout 2015, BML filed for bankruptcy in June 2015 while blaming CCA for allegedly deliberate poor craftmanship. Baha Mar was said to be 97% complete at that point.

While Izmirlian had hoped to retain control and bring in a different contractor, the Bahamian government – which saw Baha Mar as a key national project – had other ideas and the property was instead handed over to a liquidator. Construction ultimately halted for more than a year before the government announced it had reached a deal with CCA to resume construction while it looked for a buyer.

Chow Tai Fook, whose controlling Cheng family has long held close ties with Beijing, was ultimately revealed to be that buyer at an undisclosed price although rumors circulating at the time suggested the acquisition came at a massive discount.

Michael Zhu, then Vice President of industry consultancy The Innovation Group, told IAG at the time that taking control of Baha Mar was “a win-win for Chow Tai Fook and the Chinese government … diversification is part of their strategy, geographically and business-wise.”

This US$1.6 billion decision against CCA saw the judge find the contractor had “committed fraud beyond any doubt” by forcing the collapse of the project in order to enrich itself and ultimately ensure Chinese interests claimed control.

According to BML, the Appellate Court confirmed that evidence in record showed that CCA Construction exercised complete domination of CCA Bahamas and CSCEC Bahamas, and that the domination was used to breach the investor agreement, defraud plaintiff and cause the collapse of Baha Mar, resulting in plaintiff’s injury.

RelatedPosts

Inaugural WSOP Online breaks online poker records after annual Las Vegas series postponed in 2020

2025 World Series of Poker festival gets underway in Las Vegas today

Tue 27 May 2025 at 07:14
Fitch: Light & Wonder to meet reduced EBITDA leverage target by 2024

Analysts upbeat on Light & Wonder’s new US$2 billion EBITDA target for 2028

Thu 22 May 2025 at 06:31
Light & Wonder sets new US$2 billion Adjusted EBITDA target for 2028

Light & Wonder sets new US$2 billion Adjusted EBITDA target for 2028

Wed 21 May 2025 at 05:31
Light & Wonder appoints Oliver Chow as Chief Financial Officer

Light & Wonder completes Grover Gaming acquisition after securing US$800 million term loan

Tue 20 May 2025 at 04:52
Load More
Tags: Baha MarBML PropertiesChina Construction AmericaChow Tai FookfraudNorth AmericaSarkis IzmirlianSupreme Court
Share16Share3
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Knife’s edge

Editorial – Knife’s edge

by Andrew W Scott and Ben Blaschke
Tue 29 Apr 2025 at 15:14

Thailand’s Entertainment Complex journey is at a critical point, with the success or failure of the initiative to be determined...

The changing face of Macau

The changing face of Macau

by Ben Blaschke
Tue 29 Apr 2025 at 15:09

Inside Asian Gaming takes a deep dive into the new, post-COVID Macau where a revenue environment that seems to be...

Born again

Born again

by Pierce Chan
Tue 29 Apr 2025 at 14:47

Premiering in September 2010 at City of Dreams, The House of Dancing Water was a visionary creation by artistic maestro...

Richard Howarth – Testing the limits

Richard Howarth – Testing the limits

by Ben Blaschke
Tue 29 Apr 2025 at 13:17

Richard Howarth, Chief Business Officer APAC for global testing laboratory GLI, discusses his career journey and his passion for fast-paced...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Macau GGR comes in at MOP$18.9 billion in April, up 1.7% year-on-year

Citi: Macau GGR jumped 16% week-on-week to US$85 million per day

by Ben Blaschke
Tue 27 May 2025 at 19:08

Macau’s gross gaming revenue is believed to have grown 16% week-on-week to around MOP$686 million (US$84.9 million) per day for the seven days from 19 to 25 May, aided by a significant improvement in VIP volumes according to industry channel...

SABA Sports to exhibit at SBC Summit 2025 in Lisbon

SABA Sports to exhibit at SBC Summit 2025 in Lisbon

by Newsdesk
Tue 27 May 2025 at 11:35

CLIENT PROMOTION SABA Sports has announced its participation in SBC Summit 2025, scheduled to take place from 16 to 18 September at the Feira Internacional de Lisboa in Portugal. The company is inviting all attendees to visit at Stand C190,...

Inaugural WSOP Online breaks online poker records after annual Las Vegas series postponed in 2020

2025 World Series of Poker festival gets underway in Las Vegas today

by Ben Blaschke
Tue 27 May 2025 at 07:14

The annual World Series of Poker (WSOP) gets underway in Las Vegas today, with a record 100 bracelet events on offer to the thousands of players who will travel from across the world. Running from 27 May until 16 July...

Japan’s Dynam reopens 101 pachinko halls after some closure requests lifted

Dynam Japan continues pachinko hall rationalization as revenues fall again in FY25

by Newsdesk
Tue 27 May 2025 at 06:45

Pachinko hall operator Dynam Japan Holdings has reported a 3.3% year-on-year decline in total revenue to JPY126.1 billion (US$884 million) in the 12 months to 31 March 2025, impacted by a 4.4% fall in revenue from its pachinko business to...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English