Due Diligence

St Kitts-Nevis government revokes passports given to foreign investors named in SEC statement

By added on 01/06/2016

The St Kitts-Nevis Government says it has revoked the national passports given to two foreign investors after they were named in a recent Securities and Exchange (SEC) statement in the United States, reports WINN FM.

A brief government statement said that David B Kaplan and his wife Lisa M Kaplan had been granted local citizenship under the Citizenship by Investment Programme (CIP) through which foreign nationals are granted citizenship in exchange for making a significant investment in the socio-economic development of the twin-island federation.

The statement said that the Timothy Harris government by revoking the passports underscored its “commitment to the highest level of due diligence and transparency in relation to the Citizenship-by-Investment programme”.

According to the government statement, Kaplan is accused of misrepresenting investments and misappropriating investor funds.

“It is alleged that some of these funds were wired to a St Kitts law firm to assist them in attaining St Kitts and Nevis citizenship.

“The Kaplans’ application was processed after appropriate due diligence checks by a highly reputable, internationally renowned due diligence service provider found no evidence of impropriety or illegal activity.

“Based on the filing by the US Security Exchange Commission, which was released on May 27, 2016, the Government of St Kitts and Nevis has decided to revoke the passports with immediate effect,” the statement added.