On Friday night we told you about the 4 page list of assets that the receiver for Stake Bank says the company acquired under its concession but can't find. Stake Bank is now suing Mike Feinstein for those almost 4 million dollars in assets- which famously includes two planes - for a cruise port development.
But, the Feinstein's say there is no fraud and that they have an explanation. Tonight Jules Vasquez looks at the a lawsuit filling and the Feinstein response:
The lawsuit by Stake Bank Enterprises against its former owner Mike Feinstein
They allege that he fraudulently made off with assets that the company had acquired for the project and refuses to return them.
They say he wrongly converted them to his ownership and use.
In total, they claim misappropriation of 3.89 million dollars.
And this is the list - 4 pages of these allegedly misappropriated assets - including luxury SUV's, furniture, gym equipment, and, yes, two planes for a cruise port.
The receiver claims these were only registered in the Company's name for the sole purpose of, quote, "allowing him to benefit from the company's duty and tax free exemptions", end quote.
The Feinstein group struck back today with a lengthy post from Michaela Feinstein. The post criticized 7News and said it was written to, quote, "dispel misconceptions" (about) "Michael Feinstein's application of personal funds."
Feinstein writes obliquely, "What may appear to some as excessive, for the Feinstein's is the norm. 30 years of business development has its rewards. All of which is due to hard work. One plane and a few cars only meet the needs of some of the family business ventures."
She says the purpose of the 7news story was to, quote, "mis direct (attention from) these small assets which have nothing to do with the bigger issue of Atlantic banks hostile takeover attempt." She refers to the entire receivership as, quote, "prematurely instigated….attempting to usurp control of (the) project…"
She adds,
"A Belizean owning one or more planes/Jets should not be questioned much like a foreigner owning a jet. Success has its rewards. Mike not only owns planes, he has been a pilot for 50 years."
She adds, "As CEO, Michael Feinstein's role in managing a venture as vast as the $200 million Port Coral project includes customary entitlements and benefits that align with his responsibilities. Contrary to media portrayals, Mr. Feinstein personally financed the acquisition of assets like vehicles and an airplane for his consulting team-expenditures typically covered by the company to aid an executive's effectiveness."
In conclusion, she adds, quote,"the bank seeks to manipulate public perception and coerce the Feinstein Group into settling on terms that grossly undervalued the project and the investments made.
Another functionary of the Feinstein group sent us pictures of many of the assets including cranes and vehicles which she says are right at mile 5 on the George Price Highway. The receiver claims they are in an adjoining private property which he can't get access to.
The Feinstein group says a number of items on the list got damaged in the hurricane and that the cranes are for the Mexicans.
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