THE LIABILITY OF INVESTMENT MIGRATION MEDIA AND INDUSTRY GROUPS TO PURCHASERS OF CARIBBEAN CBI/CIP PASSPORTS DUE TO FRAUD AND MISREPRESENTATION

As more purchasers of Citizenship by Investment from the Eastern Caribbean states which offer such programs become aware of unfolding developments that will negatively affect the ability of the passports they acquired to achieve the purposes for which they were offered for sale, issues of fraud and misrepresentation of material fact have been alleged by them, and their legal counsel. While litigation against the consultancies that sell the economic passports will most certainly follow, the legal issue of whether a number of third parties in the so-called investment migration industry could also be found liable to the investor/consumers, for damages, has become a central element in the victims' legal strategy.

Both investment migration media and industry organizations and associations are alleged to have presented glowing and extremely favourable representations of the economic, social and personal benefits of CBI,without disclosing any of the adverse or negative consequences that purchasers may encounter after acquisition. Additionally, legal, tax, and even international law enforcement, and immigration issues are rarely objectively discussed, these media and associations purport to impart 'insider" expert advice, although they are generally not qualified professionals; Think sin of omission.

If investors, who are to be regarded as consumers for the purposes of major fraud issues, take action in detrimental reliance upon these third party representations, which do not disclose risks, there are certainly issues of strict liability for courts of competent jurisdiction to determine. Given the increasing number of complaints that have publicly surfaced, we are certain that the liability of such third parties will eventually be adjudicated.