Allen Chastanet reveals Caribbean Galaxy sold citizenships at half price in St Lucia

Allen Chastanet reveals Caribbean Galaxy sold citizenships at half price in St Lucia

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In a recent interview, opposition leader of St Lucia, Allen Chastanet agreed that Caribbean Galaxy, the company dealing with the economic citizenship program of the country was allegedly involved in the fraudulent practices by underselling citizenship applications.

While talking with St Lucia News Online reporter, Allen Chastanet accepted that Caribbean Galaxy was selling the citizenship under their real estate project at US$150,000, however, this amount should have been at least US $300,000 according to the legal minimum investment threshold.

When asked whether his administration was aware of any such fraudulent practices of the company, Chastanet admitted that they had knowledge of it.

“Yes, while we were in government. And so what was being alleged was that Galaxy was selling the citizenship, or the real estate investment, for $300,000 and providing financing. So you come, you put down $150,000, and they say they’re going to finance the rest of it.”

Out of a total of US $300,000, only half – US $150,00 was deposited by the applicant into the account of Caribbean Galaxy company. This raises serious questions about where the other US $150,000 went, which was overlooked by the government during that period of time.

No inquiry has been made into the missing funds as this is considered as direct undercutting of the CBI prices which is illegal under the law of St Lucia.

Leader of Opposition has hinted that Caribbean Galaxy may have financed the applicants involved in financial transactions. However, there appears to be no trace of these funds entering the country which leads to concerns of potential illegal activities. The fact makes it more concrete that the company sold citizenship applications by not complying with St Lucia CIP’s legal practices.

According to Citizenship by Investment Regulations, 2015, No.89 of 2015, the qualifying investment under the Citizenship by Investment Program shall satisfy at least a minimum investment in an approved real estate project.

If any applicant has applied under an approved real estate project, then he/she should have to execute a binding purchase and sale agreement for an investment in an approved real estate project. Secondly, they have to ensure that any outstanding balance of the agreed purchase price is placed in an approved irrevocable escrow in St Lucia.

With the fulfillment of these requirements, then only an applicant can be able to get citizenship in Saint Lucia. However, the citizenships sold out by Caribbean Galaxy were bypassing the financial regulations because those were sold out at half prices, which was against the legal CIP guidelines of Saint Lucia.

The entire scenario has raised serious concerns about the transparency and integrity of the program, further maligning the reputation of Saint Lucia CIP. Therefore, in order to protect the program, the citizenships that were sold out at half price must be revoked on an urgent basis.

Due to the Caribbean Galaxy’s alleged corrupt deeds, the Citizenship by Investment Program of Saint Lucia has received backlash as questions have been raised on the authenticity of the applications.

Notably, a film production company MSR Media also sued Caribbean Galaxy and its CEO Ying Yen and Les Khan, Mc Claude Emmanuel, CEO of St Lucia CIP and put allegations that the company was engaged in fraudulent transactions. In their claims, the production company alleged that the Caribbean Galaxy was involved in the underselling of the St Lucia citizenships.

Now, this is in the government of St Lucia’s hands that the citizenships that were sold in a fraud manner must be revoked with immediate effects as it has been affecting the reputation of CIP at the global level.