Grenada could become a battle ground in a legal fight between hotel developer, Range Developments and an ambassador to the United Nations for Dominica, Paolo Zampolli over an alleged multi-million dollar financial package due to him.
New York-based attorney, Robert Hantman has told THE NEW TODAY newspaper that he intends to pursue the main operator of Range Developments, Mohammed Asaria and his business associate Kamal Shehada “in whatever legal means necessary including government intervention” for the “non-payment and apparent fraud” committed against his client.
Hantman filed a lawsuit in the Supreme Court of New York on July 17 against Asaria, Shehada and several others over their alleged failure to honour a 5% contract signed with Zampolli in connection with the profits from a hotel project in Dominica that was built through the raising of funds from its passport-selling scheme known as Citizenship By Investment (CBI).
The U.S attorneys has won several cases over the years against a number of high profile persons including current U.S President Donald Trump, late King of pop music, Michael Jackson, and legendary U.S basketball star, Magic Johnson.
The Range Developments head along with Shehada have signed a similar agreement with Grenada to build a resort at La Sagesse in St. David under the Six Senses brand that should be open in 2022.
The court papers filed in New York indicated that Range Developments raised US$195 million from the sale of “800 family passports” for the Dominica project and that Zampolli is yet to receive any money from the financial intake.
The suit claims that Asaria and Shehada have already pocketed US$30 million from the Dominica hotel project by dipping into a Bank of Dominica account held in Genevas, Switzerland.
According to Hantman, he intends to ask law enforcement officials in both Grenada and Dominica to intervene in the matter involving Shehada and Asaria and his client.
Zampolli who is currently a resident in New York City with his wife Amanda Ungaro and his infant son Giovanni Zampolli, has strong links to the current Keith Mitchell government.
In August 2012, he was appointed as Ambassador under the Ministry of Tourism of Grenada and on June 6, 2014, Prime Minister Mitchell appointed Ambassador Zampolli’s wife, Amanda Ungaro Zampolli as a United Nations ambassador.
figure in Range
Ambassador Amanda Ungaro-Zampolli is now working under the 69th United Nations Vice-President of the UN General Assembly for the Blue Economy in which Grenada is seeking to tap funds.
As a public service, THE NEW TODAY reproduces in full the lawsuit that was filed in New York against the developers of Range Developments:
PAOLO ZAMPOLLI, – Petitioner,
– against –
VERIFIED PETITION
RANGEDEVELOPMENTS, RANGE PARTNERS (DOMINICA) LIMITED, RANGE INTERNATIONAL CONSULTANTS, KEMPINSKI HOTELS, S.A., KAMAL SHEHADA, XAVIER DESTRIBATS, NH.TT CONSTRUCTION, and MOHAMMED ASARIA,
Respondents.
Petitioner Paolo Zampolli, by his attorneys, as and for his Verified Petition, respectfully alleges as follows:
(1). This is a petition to obtain discovery in aid of arbitration. Specifically, Mr. Zampolli seeks an an order pursuant to N.Y. C.P.L.R. 3102(c) or, in the alternative, N.Y.
· C.P.L.R. 3102(e): (1) directing respondents Range Developments, Range Partners (Dominica) Limited (“Range”), Range International Consultants (“Range International”), Kempinski Hotels,
· S.A. (“Kempinski Hotels”), Kamal Shehada, Xavier Destribats, NH.TT Construction, and Mohammed Asaria to each produce books and records and other documents pursuant to a subpoena duces tecum; (2) compelling each of the respondents to appear for a deposition pursuant to a subpoena ad testificandum; (3) staying the arbitration proceeding in London pending the completion of such discovery; and (4) granting such other and further relief as is just and proper.
Relevant Facts:
(2). Mr. Zampolli is a United Nations Ambassador for the Commonwealth of Dominica. He is a United States citizen and a New York resident and has resided in the United States for 25 years. His primary business is real estate developments.
(3). On or about May 7, 2015, Mr. Zampolli entered into a contractual agreement (“Agreement”) with respondents Mohammed Asaria and Range concerning the development of a certain Kempinski-branded hotel project known as Cabrits Resort & Spa Kempinski Dominica, a luxury resort located in the Commonwealth of Dominica (the “Project”).
(4). The Project was developed under Dominica’s Citizenship by Investment program. Under this program, Dominica offered citizenship status and passports to individuals in exchange for substantial investment into development projects such as the Project.
(5). Respondent Kempinski Hotels, the company behind the Kempinski-brand hotels, is the current Partner of the Project. Respondent Xavier Destribats oversees operations for Kempinski Hotels in the Americas. As noted, the Project involved the development of a Kempinski-branded hotel in Dominica. Mr. Destribats is directly involved in overseeing the Project for Kempinski Hotels. Upon information and belief, Kempinski Hotel is located at and operating from 551 Madison Ave, 4th Floor, New York, NY10022.
(6). Respondent Range Developments, which led the development and construction of the Project is, upon information and belief, located at and operating from 654 Madison Ave, 9th Floor, New York, NY 10065. Range Developments has developed hotels internationally, including hotels for such brand-names as Kempinski, Intercontinental Hotels Group PLC (IHG), Six Senses Hotels Resorts Spas (which was recently acquired by IHG to complement its highest luxury portfolio), Park Hyatt, and others.
(7). Respondent Mohammed Asaria has led the Project as the founder and vice president of Range Developments and is a signatory to the Agreement.
(8). Respondent Kamal Shehada is the Development Director of Range Developments and has also been intimately involved with the Project.
(9). The Project was fully funded and sold out. A total of 800 family passports were issued under Dominica’s Citizenship by Investment program at a cost of USD $220,000 each, which yielded a total gross income of USD $195,000,000. Respondent Range International was the entity that handled all the marketing and sales for the Project and in most cases collected the sales proceeds and made distributions to the various accounts of the partners.
(10). Pursuant to the Agreement, Mr. Zampolli is “entitled to an amount equal to five percent (5%) of the development profits realised by Range Capital Partners (Dominica) Limited and any affiliate thereof” (the “Fee”). Such affiliates include Range Developments and Kempinski Hotels.
(11). The Agreement provides that “[development profits will be disbursed and calculated upon the completion of the Project and determined by the closing of accounts to be determined by the company’s auditors.” Respondents were required under the Agreement to “account fully to [Mr. Zampolli] regarding this during the course of the Project and when the development profit is realised.”
(12). Upon information and belief, the Project has been completed and the accounts closed.
(13). However, despite Mr. Zampolli’s repeated demands for payment and accounting information and his good faith attempts to resolve this dispute, respondents have refused to pay him and have offered no financial accounting information regarding the Project.
(14). Upon information and belief, while refusing to pay Mr. Zampolli or provide him with accounting information per the Agreement, distributions from the Project in the amount of USD $30 million were made to Mr. Asaria and Mr. Shehada from a Bank of Dominica account in Geneva, Switzerland. In addition, it appears that Project funds and personal and other funds have been and are being substantially commingled.
(15). The Agreement guarantees an accounting and distribution upon the Project’s completion, which itself is dependent upon Range’s auditors’ determination. Although the Project has apparently been completed, Range has claimed that it has not determined that the Project has been completed – a claim standing in flagrant disregard of the facts. It is apparent from its website that the Project has been completed.
DISCOVERY SOUGHT IN AID OF LONDON ARBITRATION
(16). The Agreement provides for arbitration of all disputes in London under the Rules of Arbitration of the International Chamber of Commerce.
(17). On or about May 5, 2019, Range commenced an arbitration proceeding against Mr. Zampolli in London (“London Arbitration”). The relief that it sought includes, among other things, a declaration that Mr. Zampolli’s request for payment of the Fee is premature because he is not entitled to any profit share until the Project has been completed and the accounts have been closed.
(18). The discovery that Mr. Zampolli is seeking here is necessary to form his arbitral claims against respondents and also to defend against the claims asserted against him in the London Arbitration.
(19.) Specifically, Mr. Zampolli is seeking discovery of books, records, financial documents and accounts, and other files or materials that relate to the Agreement and the development and construction of the Cabrits Resort & Spa Kempinski Dominica.
(20). Without discovery of the respondents’ books and records and the full accounting that he is entitled to under the Agreement, Mr. Zampolli has no means by which to calculate the Fee to which he is entitled.
(21). Without an accurate accounting and discovery concerning completion of the Project, Mr. Zampolli will not be able to form arbitral claims for his rightful share of the profits. His repeated requests and demands for an accounting and access to the books to determine Project completion have been rebuffed time and again.
(22). The documents and other relevant information that Mr. Zampolli is seeking are within the sole and exclusive possession, custody and control of Range, Range Developments, Range International, Kempinski Hotels, Mr. Shehada, Mr. Asaria, and their affiliates.
(23). This application presents extraordinary circumstances warranting relief.
(24). First, as iterated above, to form his arbitral claims and also to defend against the other relevant information that is within the sole and exclusive possession, custody and control of respondents. Critically, not all of the respondents are parties to the Agreement. The arbitrator may be powerless to compel any of them to produce documents that are stored in the United States that are necessary for the London Arbitration. For example, Range Developments, the company that actually controlled and directed the Project, is not a signatory to the Agreement.
(25). Second, respondents are international entities with accounts in Dubai (UAE), China, Iran, Switzerland, and other jurisdictions that are beyond the reach of the London arbitrators. Upon information and belief, other Range affiliates involved with the Project that may have possession, custody or control of relevant documents necessary for the arbitration include international entities or persons with substantial foreign entanglements, some of which are highly suspect.
(26). Additionally, distributions from the Project each in the amount of $30 million USD were sent to Mr. Asaria and Mr. Shehada from a Bank of Dominica account in Geneva, Switzerland. While Mr. Asaria and Mr. Shehada have been receiving these distributions from the Project funds, Mr. Zampolli is being deprived of his rightful share. Considering the scattered web of foreign accounts and investments – many of which are vehicles for evasion and fraud in jurisdictions widely known to be tax havens where funds disappear without a trace – Mr. Zampolli believes that without prompt discovery from respondents at this time he may likely lose any ability to recover his due share. It is therefore imperative that he be granted the discovery requested herein, including access to the respondents’ books and records in the United States.
(27). Notably, Mr. Asaria has faced fraud allegations in China related to his company, including allegations that he defrauded investors.
(28). Range Developments, which directed and constructed the Project, operates and controls investments in the Middle East, China, Russia, and other regions around the world. These investments are believed to be subject to U.S. Department of the Treasury regulations and governance.
(29). The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory to warn financial institutions that “certain foreign individuals are abusing the Citizenship by-Investment program sponsored by the Federation of St. Kitts and Nevis (SKN) to obtain SKN passports for the purpose of engaging in illicit financial activity.” Here, Mr. Shehada – a prominent facilitator of the Project – is a Palestinian with Egyptian travel documents who later acquired a Saint Kitts and Nevis passport. He is believed to have substantial assets in Saint Kitts and Nevis.
Mr. Asaria – the founder and VP of Range Developments and director of the Project at issue – is British, with African roots, who also acquired Saint Kitts and Nevis citizenship. He is also believed to have substantial assets in Saint Kitts and Nevis. Range Developments, which led the Project, prides itself in its Citizenship-by-Investment (CBI) exchanges, particularly in St. Kitts and Nevis (SKN). Mr. Asaria and Mr. Shehada, upon information and believe, are known to sell passports to Iran, Yemen, and Sudan to circumvent U.S. Treasury sanctions and United Nations Security Council sanctions.
(30). For all the foregoing reasons, it is imperative that Mr. Zampolli be given access to the information, books, records, and accounts, held by respondents that relate to the Project and its aftermath.
(31). No previous application for the relief sought herein has been made to any court or judge.
WHEREFORE, Petitioner Paolo Zampolli respectfully requests that the Court grant the within application and issue an order:
(1) directing respondents Range Developments, Range, Range International, Kempinski Hotels, Kamal Sheheda, Xavier Destribats, NH.TT Construction, and Mohammed Asaria to each produce books and records and other documents pursuant to a subpoena duces tecum;
(2) compelling each of the respondents to appear for a deposition pursuant to a subpoena ad testificandum;
(3) staying the arbitration proceeding in London pending the completion of such discovery; and
(4) granting such other and further relief.