Judge changes asset freeze of couple who held St Kitts-Nevis citizenship

A judge in the US state of has modified the asset freeze order imposed on two people granted St Kitts and Nevis economic citizenship in 2015.

The US Securities and Exchange Commission (SEC) complaint, which was unsealed earlier this month, stated that fraud charges against attorney and Nevada resident David Kaplan were filed based on an scheme that allegedly raised US$15.8 million.

According to the documents, approximately US$385,000 from that total amount was sent to St Kitts and Nevis between June 2015 and March 2016.

And it is alleged that at least US$79,394 was wired to a St Kitts law firm to obtain passports, or St Kitts and Nevis citizenship, for Kaplan and his wife Lisa.

On 20 May last year the court issued a temporary restraining order freezing the assets of Kaplan and other defendants in the case.

In March 2017, Judge Miranda Du heard Kaplan's appeal for a modified asset freeze.

“Defendant David B. Kaplan and/or Relief Defendant Lisa Kaplan may open one (1) new bank account to deposit employment income and pay household living expenses; b. Defendant Kaplan shall identify his prospective employer to the United States Securities and Exchange Commission (SEC) by no later than five (5) days after the entry of this order;

c. Defendant Kaplan shall notify the SEC of the bank and account number within five (5) days of establishing the account;

“d. The Defendant shall provide copies of the monthly account statements to the SEC via email no later than five (5) days after receiving the statements from the bank; and e. Defendant David Kaplan and Relief Defendant Lisa Kaplan are hereby prohibited from depositing any investor funds into the new bank account,” Judge Du ordered.

According to the SEC complaint, Kaplan repeatedly lied to prospective investors by stating that their funds would be invested in a low-risk, private offshore trading program that would be provide estimated monthly profits of 10%.

As well as accusations that investor’s money was used to gain St Kitts and Nevis citizenship, the complaint also states that Kaplan sent US$1.1 million to his wife’s, a "purported charitable foundation, and a corporation that Kaplan controlled”.

He is said to have made almost US$2 million in “Ponzi-like payments” to other investors.

In a press release issued at the end of May 2016, the office of Prime Minister Timothy Harris revealed that two St Kitts and Nevis passports issued to the pair had been revoked.