UNITED STATES-Trinidad government victorious in the civil lawsuit

Miami, CMC: Former attorney general, Faris Al Rawi, has described it as a “victory for the people of Trinidad and Tobago” after a jury here found Trinidadian businessman Steve Ferguson and a former government minister liable for multiple claims arising from the redevelopment of the Piarco International Airport in Trinidad and Tobago dating back to more than 20 years ago.

Al-Rawi, who was the corporate representative of the twin island republic in the government’s civil lawsuit, said that “the jury found by clear and convincing evidence that Ferguson had violated Florida’s Racketeering and Influence Corruption Organisation Act (RICO) statutes, and was also liable for fraud and conspiracy to commit fraud.

“The jury further found that the defendants caused over US$32 million in damages to the Republic of Trinidad and Tobago,” he said, adding, “the net effect of the verdict is that the State is the beneficiary of the trebling of damages automatically and is also entitled to prejudgment interest of at least US$25 million. The final judgment will be well more than US$100 million.”

Al-Rawi was restored as the island’s representative after a US appeals court, in February, affirmed the disqualification of Attorney General Reginald Armour, SC, and Miami law firm Sequor Law, from representing the country.

Al-Rawi, who has been in Miami since the trial began on March 6, said the jury deliberated for approximately two hours.

The government began US litigation in 2004 as it sought to recoup US$37 million from those accused of corruption before the court were Ferguson, former Trinidad and Tobago finance minister Brian Kuei Tung and US businessman Raul Gutierrez Jr.

They were the only three defendants left in the Trinidad and Tobago government’s civil case from the original matter. The patient initially involved 23 defendants.

Kuei Tung and Gutierrez, the former principal of Calmaquip Engineering Corporation, which provided specialized equipment at the airport, were previously held liable in the racketeering case.

Al-Rawi said the jury found all three men liable for US$32,385,988 each in damages suffered by Trinidad and Tobago and granted the RICO claims made by the State.

Miami-Dade Circuit judge Reemberto Diaz presided over the announcement of the verdict at the Miami-Dade County Courthouse here.

When the State filed its fifth amended complaint in April 2007, there was a total of 56 defendants, which included 11 businessmen, 12 corporate entities, and 33 “in rem” (or property) defendants, which comprised bank accounts and tangible assets.

The State maintained that Ferguson, Kuei Tung, and Gutierrez conspired with others to corrupt the bidding process on two construction packages and the airport’s maintenance contract.

In April 2016, the court granted summary judgment against Gutierrez, ruling that he was liable for fraud and violations of Florida’s RICO statutes. Gutierrez pleaded guilty in 2006 to conspiracy charges to commit wire fraud and transportation of stolen property in violation of US federal law related to his involvement in the Piarco project.

In October 2019, the court entered a default judgment against Kuei Tung for refusing to attend his deposition to answer questions about the case. The default resulted in liability against Kuei Tung for the same claims. The court also determined Kuei Tung liable for conspiracy to commit fraud.

The jury trial began on March 6, and the court heard evidence from both sides over 14 days. Closing addresses began and ended on Wednesday, after which the jury retired to deliberate.

Earlier this month, the Director of Public Prosecutions (DPP) in Trinidad and Tobago, Senior Counsel Roger Gaspard, withdrew the 17-year-old corruption case against former prime minister Basdeo Panday and several others, including his wife, Oma, saying the prosecution would be unable to secure a conviction.

Apart from the Pandays, the others before the court were former minister Carlos John and businessman Ishwar Galbaransingh.

Gaspard said discontinuing the decades-old Piarco inquiry was because he needed to be convinced of securing a conviction.

The Pandays were charged with corruptly receiving money. John and Galbaransingh were charged with corruptly giving the couple £25,000 (One British pound = 1.20 cents).

John and Galbaransingh were accused of giving Panday the money as an inducement or reward for the Piarco airport expansion project.

The Pandays and the others were charged in 2005.

The charges against the former prime minister were linked to more expansive charges against several businessmen and businesses. There are four related inquiries, none of which has gone to trial.

In the first case, commonly referred to as Piarco 1, a group of government officials and business people was charged with offenses related to the alleged theft of TT$19 million.

The group included Galbaransingh, Kuei Tung; Ferguson, former national security minister Russell Huggins; the later Nipdec chairman Edward Bayley; the late Maritime General executives John Smith and Barbara Gomes; Northern Construction Financial Director Amrith Maharaj; and Renee Pierre.

Some of the group and other public officials were also slapped with separate charges over an alleged broader conspiracy to steal US$200 million in another case, commonly referred to as Piarco 2.

The Piarco 3 case pertained to the charges against the Pandays, while Piarco 4 is yet to be completed.