By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

ArawakX’s provisional liquidators have accused the crowd-funder’s principals and owner of its website of colluding to deny them control of the platform while setting up a similar US-domiciled operation.

Raynard Rigby KC, attorney for Ed Rahming and Cheryl Simms, in separate February 2, 2024, letters demanded that D’Arcy Rahming senior and his son, D’Arcy junior, together with California-basedCloudPro, “immediately deliver to them the password(s) and other credentials” his clients need to assume control of the ArawakX platform as well as restore “the functionality” that was removed.

The Baycourt Chambers principal’s letter also revealed how Mr Rahming, the Intelisys (Bahamas) principal, and Ms Simms, the Kikivarakis and Company accountant, met with Mr Rahming senior and others on January 18, 2024, to voice their concerns and suspicions that ArawakX assets were use to finance the creation of a US company whose website is “a duplicate” of the Bahamian crowd-fund platform.

“We are instructed that at a meeting held with you (and others) by the joint provisional liquidators on January 18, 2024, the joint provisional liquidators shared with you their findings that the assets of ArawakX were used to fund the start-up and operations of a US-based company called Local Investment Hub (LIH),” Mr Rigby told Mr Rahming senior in a letter copied to both his son and their attorney, Khalil Parker KC.

“It appears from the records obtained that you and D’Arcy Rahming junior are noted as officers of LIH. The joint provisional liquidators also discovered that the assets of ArawakX were used to fund the operations of LIH.

“It was also brought to your attention that LIH’s website is a duplication of the website used by ArawakX. You were also informed of the fact that the website used by ArawakX remains inaccessible by the joint provisional liquidators.”

Mr Rahming and Ms Simms, the day after their January 18, 2024, meeting with Mr Rahming senior demanded that he provide details on all business transactions conducted by ArawakX, MDollaz Ltd and their affiliates in the US, along with details on any US bank accounts and “a copy of the Brickell office lease agreement that may be in the name of LIH”.

They, via Mr Rigby, warned that failure to respond by 12pm on February 5, 2024, would result in the provisional liquidators seeking the “intervention” of the Supreme Court. No reply was received by that date, with Mr Rigby’s letter also revealing that the provisional liquidators were struggling to gain access to, and control over, the online ArawakX platform.

“Their efforts have proven fruitless as you and CloudPro refused to allow them the level of access and control requested,” he alleged. “The joint provisional liquidators have formed a view that CloudPro and TradeX Worldwide (affiliated companies), acting in concert with you or others, have intentionally refused to grant the joint provisional liquidators access and control to the aforesaid website.

“The joint provisional liquidators are also of the view that functionality of the crowd funding platform on the website was removed by CloudPro and yourselves. In this regard, the joint provisional liquidators require that you immediately deliver to them the password(s) and other credentials to allow the joint provisional liquidators to access and control the website and crowdfunding platform and that you return forthwith all of the functionality of the crowdfunding platform that was removed.”

Mr Rigby continued: “The joint provisional liquidators have formed a provisional view that you are using LIH’s website to trade and carry on certain activities that are identical in the main to those carried on by ArawakX.

“You are further warned that any activity by you on the website is strictly prohibited due to the Order of the Supreme Court and that, should the joint provisional liquidators so discover that trading or other such or similar activity was conducted post the appointment of the joint provisional liquidators, such conduct will be shared with the court.”

And, in closing, Mr Rigby also demanded further details on a $50,000 wire that was sent to an ArawakX bank account at Chase Bank in New York. The first report to the Bahamian Supreme Court by Mr Rahming and Ms Simms, to which Mr Rigby’s letter was attached, revealed that the first-ever Bahamian crowd-funder did not own its website or platform.

“The joint provisional liquidators found that the company’s website and crowdfunding platform are owned by CloudPro, a cloud application development company,” they wrote. “It appears that the development costs for the crowdfunding platform are not realisable and that over $1m in development costs are currently owed by the company.

“CloudPro refused to provide us with control of the website. We requested that CloudPro place an announcement of the provisional liquidation on the website but CloudPro refused stating that it would have to be paid outstanding billings owed to it before it could provide any services.

“The crowd-funding platform is based on the website. We were provided with administrative credentials for the crowdfunding platform, and we were provided with all the company’s data on the platform. However, we were not provided with control of the crowd-funding platform,” Mr Rahming and Ms Simms continued.

“We were advised by CloudPro and by the principals of the company that the platform was licensed for use to the company and was not owned by the company. CloudPro advised that it was owed monies by the company and provided 14 invoices for $50,000 each [total $700,000] for services between October 2022 and November 2023.

“The joint provisional liquidators requested the agreement between the company and CloudPro, and were informed by Mr [Doug] Kryzan (its chief executive) that there is no agreement. Mr Kryzan indicated to the joint provisional liquidators that there was, however, a purchase agreement dated January 1, 2023, signed by Mr Rahming senior. However, the purchase did not materialise.”

Mr Rahming and Ms Simms revealed that the purchase price involved was $2.209m. Mr Rigby, on their behalf, wrote to Mr Kryzan on February 2, 2024, in similar terms to the letter sent to Mr Rahming senior, demanding that his clients be given the passwords and log-in credentials that will enable them to take control of the ArawakX website and also to restore its functionality.

“You are further put on notice that should you not co-operate the joint provisional liquidators will seek an order from the Supreme Court to commence proceedings in California, USA, to compel you to deliver the requested information,” Mr Rigby told Mr Kryzan. “We trust that this step will not be necessary and that you will co-operate with the work of the joint provisional liquidators.” No reply has been received from CloudPro.