business@tribunemedia.net
Monday, May 18, 2026
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Bahamas bank ‘strongly denies’ $100m ‘sham’ loan accusations BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN bank says it “strongly denies” accusations it played a central role in a $100m “sham” and “fraudulent” transaction involving a loan secured against shares in an artificial intelligence (AI) data sciences provider. St James Bank & Trust Company, which is based at Lyford Cay, in response to Tribune Business inquiries vehemently rejected claims by a Nasdaq-listed pain management products developer that it had sold-off 85m shares the latter owned in Datavault AI, which were supposed to serve as collateral for a multi-million dollar loan, without authorisation. The Bahamian financial institution said it is now seeking to “compel arbitration” of Scilex Holding Company’s lawsuit in this nation, arguing that here - rather than the central California federal court - is “the proper forum”
St James pushes for Bahamas arbitration on pain manager’s claims Nasdaq-listed firm alleges it became victim to ‘conspiracy to defraud’ Claims Lyford Cay bank sold-off share collateral without permission for resolving all disputes related to the now-controversial transaction. Scilex, in its original March 11, 2026, complaint, a copy of which has been obtained by this newspaper, is alleging that it fell victim to “a conspiracy to defraud” it out of “tens of millions of dollars worth of securities” perpetrated by St James and others, including Omega & Corinth Group Ltd, which was described as a Bahamian-domiciled International Business Company (IBC). Describing itself as a “major shareholder” in
Datavault, which is aiming to generate $200m in fullyear revenues for 2026, Scilex revealed that in late 2025 it had been seeking to raise capital for the AI data provider so that it could “complete a substantial transaction” by year-end the details for which were not provided. The pain management products provider alleged that it approached Marc Wade, principal of Wade Capital, an investment firm, who also “held himself out” as the owner of both St James and Omega & Corinth Group. The two
Moody’s: Gov’t needs 22% revenue jump to hit target BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TAXES and other income must grow by 22 percent year-over-year during the six months to end-June 2026 for the Government to hit its full-year revenue target, Moody’s is warning, as credit rating agencies hailed the “policy continuity” afforded by the general election’s outcome. Moody’s, despite warning that a “significant acceleration” in tax, fee and other revenue collections is required during the 20252026 fiscal year’s second half, joined fellow rating agency, Fitch, in asserting that the May 12 result gives
the second Davis administration the mandate to proceed with all existing policies and continued “consolidation” of The Bahamas’ public finances. Fitch, in an assessment that mixed the positive with realism, forecast that the Government’s achievement of annual Budget surpluses, meaning revenues exceed total spending, will be more “gradual” than the Davis administration is projecting. It reiterated its belief that the $75.5m surplus predicted for 2025-2026 will be missed by some $150m, with the Government instead achieving a deficit of around the same magnitude
INCOME - See Page B6
Fresh battle for control over Old Bahama Bay BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FRESH battle for control erupted at Grand Bahama’s Old Bahama Bay resort over the weekend after the property’s owner made a renewed attempt to oust the group of condo proprietors that have been managing it. Tribune Business can confirm that agents acting for LRA-OBB Ltd, which stands for Lubert AdlerOld Bahama Bay, starting on Friday made a new bid to take the hotel, marina
and dock areas back from Island Ventures Resort & Club (IVRC) by asking the latter’s staff to leave and moving to secure the premises with its own workers and changing the locks. However, it is understood that - up until yesterday afternoon - IVRC, which was formed by a group of the 73 condo owners to keep the property operational in the wake of the 2011 financial default by Ginn, was resisting the LRA-OBB takeover amid government support for
RESOLUTION - See Page B7
sides purportedly agreed a structured where the Bahamian bank and trust company would loan Scilex “up to $100m” secured against a portion of the latter’s Datavault shares which were to be retained until the funding was repaid. Scilex, though, is alleging that Mr Wade and St James breached the deal by secretly, and without its permission, selling-off the Datavault shares pledged as collateral on the open market. And it is claiming that the defendants used the proceeds from the stock sales to finance the loan to itself rather than the monies coming from their own resources. The California-based supplier, which asserts that its pain products do no rely on opioids, then alleged that - because the value of the loan was supposed to be worth only 60 percent of the pledged share collateral - the non-disclosed stock disposal would enable St ALLEGATIONS - See Page B4
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Air crash drug accused linked to contractor in PPP legal fight BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE air crash victim arrested and charged with drug offences by the US authorities appears to have been linked to a Bahamian construction company around the time it secured a $34m public-private partnership (PPP) deal with the Government. Documents from The Bahamas’ registry of records, which have been seen by Tribune Business, reveal a ‘Jonathan Gardiner’ swearing under oath that - despite being “the president and a director” of Top Notch Builders - he owned not a single share in the company. Top Notch Builders, which is based on Adelaide Road in southwest New Providence, is the firm that secured the deal to construct the Government’s Eight Mile Rock administrative complex one day before the May 10, 2017, general election. Multiple sources, speaking on condition of anonymity, yesterday confirmed that the ‘Jonathan
Gardiner’ referred to in the document is the same Jonathan Eric Gardiner now in held in custody in the US following last week’s general election day plane clash after he was charged with involvement in a long-running conspiracy to smuggle cocaine into the US. Some described Top Notch Builders as “his company”, meaning Mr Gardiner’s, although that is to be balanced against the document seen by this newspaper. Sworn on February 13, 2017, less than three months before the PPP deal for what is now the Obadiah H. Wilchcombe government complex, named after the late MP and minister of tourism, was signed on May 9, 2017, the document - signed by Jonathan Gardiner appears to be an attempt to distance himself from ownership of Top Notch Builders by denying he has any beneficial interest in the company. He testifies under oath that Top Notch Builders is
ENFORCE - See Page B5