WILL ABANDONED SAINT LUCIA HOTEL AND RESIDENCE PROJECT FUNDED THROUGH CARIBBEAN GALAXY CIP FRAUD INCUR CIVIL OR CRIMINAL LIABILITY FOR HYATT HOTELS GROUP?

In 2019, Chinese-owned CARIBBEAN GALAXY GROUP initiated a major hotel and residence CIP project in Saint Lucia, known as the CANELLES RESORT, in partnership with AML Resorts, which was later acquired by HYATT HOTELS CORPORATION. Based in part upon the strength and reputation of the Hyatt brand, Galaxy reportedly sold all eleven thousand citizenship by Investment (CIP) passports to investors. As you can see from the photo, after more than six years, construction on the project appears to have been abandoned long ago, and there is no active construction crew on the worksite. Allegations of fraud, money laundering and corruption have roiled Saint Lucia since MSR Media exposed the scandal in 2024.

Given the outrage exhibited by the Saint Lucian public to the Galaxy scandal, which involves the illegal sale of discounted CIP citizenships to foreign investors, questions are arisen within the professional and legal community regarding the potential civil liability of Hyatt to CIP investors as well as the people of Saint Lucia, and possible exposure under the country's criminal code. There were reportedly a number of specific complaints directed to Hyatt, regarding construction delays, and the abysmal status of the project, warnings which we understand were ignored by the hotel chain.

In the aftermath of the recent regulatory action in Grenada, which also has a CBI program, also involving the sale of illegally-discounted citizenships, where the Chinese-owned consultancy HENGSHENG GROUP was sanctioned, a similar action could ensue in Saint Lucia, increasing the possible liability of all entities engaged in the failed Canelles Resort Project. We will be conducting further inquiries in this matter, and reporting back on all developments as they occur.