Free National Movement (FNM) Leader Michael Pintard has asked Police Commissioner Shanta Knowles to expand a police investigation into allegations stemming from a US criminal complaint regarding drug trafficking to include a forensic examination of the banking relationship of Top Notch Builders and any associated entities, saying new claims in the case “affect the integrity” of The Bahamas’ financial system.
Pintard’s concerns were outlined in a letter sent yesterday to Knowles, Minister of National Security Myles LaRoda and Attorney General Wayne Munroe. The letter was also released to the media.
Pintard wrote that since the FNM’s initial June 11 letter to the police commissioner calling for an investigation into drug trafficking allegations stemming from a sworn affidavit filed in a United States court, more information has come to light that strengthens the basis for “a targeted financial investigation into potential money laundering, non-disclosure of beneficial ownership, and the misuse of corporate structures to conceal control of funds.”
Pintard wrote that there appears to be an “inconsistency” between Top Notch Builders’ formal corporate records and the apparent exercise of control over the company’s financial accounts.
“Specifically, there are credible indications that an individual, Mr. Eric Gardiner, not reflected in the company’s corporate filings, may nonetheless have exercised direct access to and control over the company’s bank accounts, including the withdrawal of significant sums,” Pintard wrote.
“This disconnect between recorded ownership and actual control of funds is highly significant. Under the applicable legal framework governing financial transactions reporting and beneficial ownership disclosure, such a mismatch may indicate the use of corporate entities to obscure the identity of the true controlling party and, in turn, may be consistent with established indicators of money laundering activity.
“Against that background, we respectfully urge that the ongoing investigation be sure to include a detailed forensic examination of the banking relationships associated with Top Notch Builders and all related entities.”
Pintard requested that police, along with the relevant commercial bank or banks, as well as financial intelligence and regulatory authorities, launch a full review of all corporate bank accounts held in the name of Top Notch Builders, as well as any accounts held by its subsidiaries, affiliates, or related entities.
“This review should include the identification of all authorized signatories to those accounts over time, the dates on which such authority was granted or revoked, and the actual pattern of usage of the accounts. Of critical importance is the need to obtain and analyze the Know Your Customer (KYC) documentation and due diligence records held by the banking institutions, including all declarations of beneficial ownership submitted at the time of account opening and during subsequent reviews,” Pintard wrote.
Last week, The Nassau Guardian reported that although he has not been listed as a director or president of Top Notch Builders since 2017, Jonathan Eric Gardiner, the man at the center of a drug conspiracy that has rocked The Bahamas, withdrew $20,000 in cash from Top Notch’s Bank of The Bahamas (BOB) account the day before the election.
The revelation, outlined in US court documents, backs US prosecutors’ argument that Gardiner is still affiliated with the construction company that has enjoyed millions of dollars in government contracts since 2017. According to filings at the Registrar General’s Office, Sampson Hield has been listed as the beneficial owner of Top Notch since 2016. Minister of Finance Michael Halkitis served as president of Top Notch between 2019 and 2021, when he was no longer working in government. Gardiner was not listed as a director during that time or since.
Gardiner is accused of conspiring to import five kilograms of cocaine or more into the US, firearms possession in furtherance of a drug trafficking crime and conspiring to possess firearms in connection with the alleged drug scheme. He pleaded not guilty to the charges and was denied bail last week.
He was arrested by US authorities after the plane he was on with 10 others crashed in waters off Florida on May 12, election day in The Bahamas. He was found with $30,000 in cash, which a DEA agent said was consistent with the way drug dealers handle their money.
Gardiner’s lawyer has argued in court filings that some of the money was “campaign related”.
Many of the passengers on the plane with Gardiner were dressed in Progressive Liberal Party (PLP) shirts and headed from Abaco to Grand Bahama to vote.
After his arrest, a criminal complaint was filed against Gardiner.
In his letter, Pintard said authorities must “trace the flow of funds between Top Notch Builders and its subsidiaries, affiliates, and related companies, including but not limited to entities engaged in construction or development activities linked to government projects”.
“This should include a determination of whether any such entities operated as independent commercial enterprises or, in substance, functioned as conduits for the movement of funds within a broader financial structure,” he added.
He said particular attention should be placed on the relationship between Top Notch Builders and entities associated with public projects, including the Carmichael Village Project Development Ltd., a special purpose vehicle (SPV) established by the government.
“We understand that this SPV was established by the same legal firm that has served as the registered agent for Top Notch Builders,” he wrote.
“The investigative authorities should examine all financial flows between these entities and public sector counter-parties, including any payments arising under government contracts, to determine whether such funds were subsequently transferred through layers of corporate entities in a manner consistent with concealment or obfuscation.
“The investigation should also address whether any special-purpose vehicles, subsidiaries, or related corporate arrangements were used to facilitate the commingling of public funds with private financial flows, or otherwise created opportunities for the layering and integration of funds in ways that may be inconsistent with lawful commercial practice.”
Pintard said the issue no longer is constrained to allegations of drug trafficking, but now encompasses broader concerns about the integrity of the country’s financial systems.
“The matters now before the authorities are no longer confined to allegations of narcotics trafficking,” Pintard wrote.
“They raise the prospect of a broader misuse of corporate and financial systems to conceal ownership, control financial flows, and obscure the origin of funds.
“These are issues that directly affect the integrity of the country’s financial system and its compliance with international standards.”
