US court case to examine losses of Ritz investors
(CNS Business): A legal case in the South Dakota Supreme Court is scheduled to hear arguments this week on how a charitable foundation created by Marvin Schwan, a US frozen food magnate, lost around $600 million in offshore real estate ventures, including cash invested in the Ritz-Carlton, Grand Cayman. Schwan’s sons are trying to establish what happened to the missing cash.
In court documents they list loans and equity investments made in four hotel developments, exposed after the fund’s trustees tracked an elaborate network of over 100 holding companies and entities in BVI, the Bahamas, Costa Rica, Panama and the Cayman Islands.
According to reports in the US media, the Schawn sons stated in their legal claim that these “offshore investments failed in spectacular fashion, causing the foundation to suffer losses of hundreds of millions of dollars”.
While the Ritz-Carlton proved to be a successful hotel, the companies created by its developer, Michael Ryan, to construct and later manage the property were placed into receivership in 2012 over an unpaid $250 million loan.The hotel was then sold by the receivers at a public auction in November 2012 to Five Mile Capital Partners for just US$177.5 million.
Category: Court Business
And just this morning the Compass is heralding a new project spare headed by the infamous Michael Ryan. Its no wonder our beautiful once peaceful Islands get international bad press for being a haven to notorious schemes!
The uncollectable and unsecured loans made to the Ritz were known many years ago as the tax returns of the foundation were accessible for all to read. The trustees used to come to the Ritz and party with photos on websites.
The true problem is that religous foundations in the US are totally unregulated. So much for regulation in the US.
As the Ritz was never audited no one knew about this huge fraud which in my opinion was just one of several.No liquidators were ever appointed so the full extent of the fraud will never be known.
I would suggest the ACC might take a look at it and the involvement of the former owner.
From what I understand, Dart has purchased the Ritz. Any truth to this and why is it being kept quiet?