By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian broker/dealer’s liquidator has voiced concern that its majority shareholder and then-senior management removed over $8m in the two-and-a-half years prior to its insolvency.

Ed Rahming, the Intelisys (Bahamas) founder and managing director, in his second report to the Supreme Court hinted he was exploring the possibility of initiating legal action against Pacifico Global’s majority shareholder, Arturo Klein, to at least recover some of the $4.263m paid out to him.

“The liquidator has noted... the significant related party payments to the shareholder and former management members. These payments exceed $8m in the reviewed period. Given the current insolvent position of the company, these payments are concerning,” Mr Rahming wrote. “We found approximately $700,000 of related party-payments in the six months prior to liquidation [in August 2019]. These payments relate to Klein and represent monthly payments made to him for consulting fees. We will address this matter.”

Mr Rahming declined to comment when contacted by Tribune Business, but persons close to developments with the Pacifico Global liquidation said he and his attorneys, Callenders & Co, were likely to seek directions from the Supreme Court as to whether recovery of such funds should be pursued although no claims of wrongdoing have been levied yet.

Documents attached to the liquidator’s report on Pacifico Global’s collapse reveal that some $1.809m was removed from the struggling Bahamas-based broker/dealer and transferred to related party entities of which Mr Klein was a beneficial owner, while a further $1.579m was paid out to him directly. A final $875,000 was used to make payments on his pre-paid credit card.

Meanwhile, Eliano Tamburini, Pacifico Global’s former chief executive, and Luca Lanciano, its ex-chief operating officer, received $2.009m and $1.865m between January 2017 and August 2019 as fees/commission payments for introducing clients and business to the broker/dealer.

These $3.874m in combined payments are understood to have been part of the duo’s contractual relationship with Pacifico Global and, while there are no allegations of any wrongdoing, there are likely to be questions as to whether it was prudent to take out such large sums at a time when Mr Klein and his senior management should have been aware of the deteriorating financial position.

Mr Rahming said his further investigations had not led him to change his opinion as to why Pacifico Global collapsed, with the root cause lying in “mismanagement of the company”.

“In 2017, the company began to experience a cash shortage/solvency issue which was the result of paying out ‘excessive cash’ to related parties for business introductions and consulting,” he revealed previously.

“There are substantial related party payments and transfers made with the apparent knowledge that insolvency of the company would occur. There also appear to be creditor payments made shortly before the liquidation that were transacted with the knowledge that the company would shortly become insolvent.”

However, Mr Lanciano, who remains in The Bahamas after setting up his own financial services business, Phoenix Capital Ltd, was subsequently appointed to Pacifico Global’s liquidation or creditors committee.

Court documents seen by Tribune Business suggest the three-person committee has not made Mr Rahming’s life easy, as it seemingly stalled on approving remuneration requests for himself, his staff and attorneys for work done on the Pacifico Global liquidation. It also challenged his plans for dealing with the bulk of client assets.

The other two committee members were Alexander Maillis, an attorney with Maillis and Maillis, representing Pacifico Global’s landlord, Mosko, and Paul Winder, a senior executive with Lyford Cay-based Deltec Bank & Trust.

Deltec “promoted” and administered investment structures into which Pacifico Global placed around $217m worth of clients’ monies. These structures, known as “sub-funds” of a main investment fund, are in receivership under Philip Galanis, the HLB Galanis & Company accountant and principal.

Following a Supreme Court ruling by Justice Renae McKay, Mr Rahming has transferred some $53m-plus of client assets invested in these sub-funds, which it was holding in escrow, to Mr Galanis and Deltec. Mr Winder, after this move, stepped down from the liquidation committee as Deltec’s claim has now been satisfied.

Pacifico Global’s collapse represents another ‘black eye’ for Bahamian financial services at a time when it continues to face continued scrutiny and attacks from the likes of the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD).

Mr Rahming’s latest report affirmed that Pacifico Global’s liquidation estate faces a likely deficit, with available assets insufficient to repay creditors and clients all that they are owed.

Some 118 claims, totalling a collective $8.584m, have been accepted by the liquidator, when his and legal fees are factored in together with other accounts payables, Pacifico Global’s total liabilities exceed its assets by an estimated $518,301.

“The liquidation costs and the customers’ claims (trust claims) that have been adjudicated exceed the customers’ assets (trust assets) resulting in a net deficit position. The main reason for this is that the quality of many of the securities is questionable and there are liquidity issues,” Mr Rahming warned in his report to the Supreme Court.

“The liquidator will prepare a liquidity analysis to determine the actual assets that are available. We will also with court approval realise all securities, liquid and illiquid.”