BML Properties Ltd. has secured a judgment exceeding $1.6 billion against China Construction America (CCA) in a protracted New York lawsuit over the Baha Mar project, winning on all counts. This landmark verdict highlights the significant loss experienced by the Izmirlian family and reveals the extent of CCA’s wrongdoing, including actions that led to the ousting of Sarkis Izmirlian and the Baha Mar management team, ultimately harming The Bahamas.
Sarkis Izmirlian, Chair and CEO of BML Properties and the original developer of Baha Mar, stated, “I first conceived of Baha Mar more than 20 years ago, only to see it ripped out of my hands at the brink of opening by CCA.”
Justice Borrok ruled that CCA, the U.S. division of China State Construction Engineering Corporation, defrauded BML Properties and violated their investment agreement, leading to the complete loss of BML’s $845 million investment in Baha Mar. Evidence revealed that instead of preparing the resort for guests, CCA misused funds to acquire the British Colonial Hilton in Nassau, cut hundreds of workers before the grand opening, diverted key resources to a project in Panama, and conspired with corrupt Bahamian officials to remove BML Properties.
The ruling characterized CCA’s promise of a March 27, 2015, opening as “empty” and “a sham,” noting that Izmirlian acted honorably and reasonably throughout the process. The court concluded that CCA’s actions triggered a liquidity crisis that ultimately led to Baha Mar’s Chapter 11 bankruptcy in June 2015.
“We are grateful to have finally had our day in the US judicial system and thank Justice Borrok for his fair and thoughtful approach to the case,” said Izmirlian, expressing intentions to enforce the judgment prudently.
