Premier and Minister of Finance Hon. Ralph T. O’ Neal, has made an announcement in the beginning of October concerning the BVI government plans to launch a transparent investigation into the issue of the disbursement of more than US$45 million between a Bermuda-registered IPOC International Growth Fund Ltd, and the British Virgin Islands. This amount was confiscated by the BVI court some months ago, after the 17 month investigating period carried out by authorities of the British Virgin Islands and Bermuda, and after the BVI- and Bermuda-based companies pleaded guilty to providing false information and perverting justice course. It was found out that in 2004-2005 the IPOC group lied about the source of $40 million that was lodged with the court of a separate civil matter.
The three BVI companies – Albany Invest Limited, Lapal Limited and Mercury Limited, – were also ordered to pay a total of $2.2 mln in costs and $300,000 in fines for their part in the offences. All the defendants including BVI companies are within the IPOC group.
In the centre of the case there was a long dispute between IPOC and Alpha Group which is the owner of the BVI-registered LV Finance Group Limited; it is suggested that the $45 mln amount plus was transferred and divided in half between the BVI and Bermuda without the awareness of the BVI government.
Premier O’Neal said that the BVI government was not aware of the disbursement seized by the BVI High Court from a Bermuda company, and announced that the government will be launching a transparent investigation into the issue.