Chief Justice Could Be Ousted for Ties to Bacon

The new Bahamas administration is reportedly putting some pressure on current Chief Justice Michael Barnett to resign.  CJ Barnett was appointed under the former administration, the Free National Movement party, but his tenure thus far hasn't gone smoothly.  In fact, he has been under the suspicion of dealing with court matters that he should not, due to the fact that it could be seen as a conflict of interest.

The Progressive Liberal Party Government is making as many changes as necessary to get tough on a crime rate, which was spiraling out of control under the former administration.  PLP advisors say the most recent conflict of interest allegation against the CJ should be the last straw for him and he should resign from such a significant post in the justice system.

The most recent allegation is really, just an old one that has resurfaced.  It stems from an issue centered on a financial transaction that Sir Michael allegedly handled while he was the Attorney General.  While the powers that be debate that issue, we'd like to remind them of Sir Michael's behavior as it pertains to the case of two foreign investors, Peter Nygard and Louis Bacon.

Chief Justice Michael Barnett

The obvious bias that the FNM extended towards Mr. Bacon even when he was caught in wrongdoing is flabbergasting.  The former administration had the then AG John Delaney sign off on a nolle prosequi to throw out a legitimate case of defamation and conspiracy against Bacon, but in their haste, all of the other defendants' names were included on that document except Mr. Bacon's.

Sir Michael is caught up in the issue because he was formerly a part of Bacon's legal team, Graham Thompson & Co, before coming into the public justice system.  Meanwhile, his daughter has taken up the case against Nygard for Graham Thompson & Co.  This is seen as a big conflict of interest and too close to home, especially when Nygard's legal team has made complaints that have even been reported in the media about all of the dodgy actions happening in the courts as they try to push forward their case.

Nygard and Bacon have been locked in court battles ever since Bacon moved into Point House, the neighboring property to Nygard Cay.  An excited Bacon started extending and building up his property.  In one instance, he utilized the roadway, which is designed to be a shared roadway for the residents, and build up his easement in such a way that he commandeered the roadway for himself.  This led to much confusion as Nygard's guests had trouble finding their way around the new layout.  It was obvious that Nygard had been left with nothing but a small pathway leading to his entrance gate.

It is for this reason that "To Nygard Cay" signs were created, for the benefit of guests.  Yet, Mr. Bacon took that matter to court seeking to have those signs removed, even though he no longer lives at Point House and has it up for sale for some $85 million.  His exit from the Bahamas left a trail of cloudy smoke behind, as people try to figure out why one Bahamian foreign resident had so much power with the former administration.

Nygard Optimistic about Rebuilding Dream Home

Peter Nygard, internationally-acclaimed fashion designer, has a positive outlook on the future of the Bahamas for investors now that the new administration is settling in.  The Progressive Liberal Party reclaimed the reigns of power from the Free National Movement on May 7, 2012, with the widespread support of the public, who viewed the FNM as a discriminating government that did not lay out an equal playing field for citizens and investors.

There were hopes as bright as the golden colors of the PLP when they first came into power, but the wheels turned much more slowly than they expected, after finding out just how much damage the former administration had done. But now, it appears that the government is forging ahead with its plans that had begun execution during the 2002 - 2007 reign.  Those plans left wide open invitations for foreign investors to consider the Bahamas a place worthy of investing.  They were and are looking for the type of investor who will not see the Bahamas as just a playing field to frolic in the sun.  They wanted people who would fall in love with the country and its people, and become a meaningful part in the nation's growth, as so many investors successfully did during the 25 years that the Father of the Nation Sir Lynden Oscar Pindling was at the helm.

Nygard is just this kind of investor.  For the past 20 years, he has proven a commitment to the Bahamas that should stand as a beacon for all other investors to follow.  His love for sports as led him to invest heavily in the national past time, regatta sailing.  He has sponsored camps for boxing prodigies; thrown heavy support behind volleyball athletes who wanted to specialize in beach volleyball; and supported the sport of tennis.  In addition, he has been a major source of inspiration for the Bahamas Olympic team, having given tens of thousands of dollars worth of personal cheques to Olympians like the Golden Girls.  They received an additional $2,500 each from him on their anniversary.  Most recently, Nygard was one of several private benefactors who gave cash gifts to the 2012 London Olympians the Golden Knights.  

Nygard, the Golden Girls, and former  Minister of Sports Desmond Bannister

He is optimistic about the future for the Bahamas and investors like him because of the youthful and energetic cadre of Ministers that sit in the current seat of government.  Prime Minister Christie, he feels, made some good decisions such as placing Khaalis Rolle and Ryan Pinder to take care of financial and investment matters; placing a revolutionary like Jerome Fitzgerald to head education; having a young veteran like Obie Wilchcombe lend his years of experience to the Tourism industry once again; giving Ken Dorsette the leverage to manage the way forward for energy; and so many others.

Surely, fresh and unbiased views in the Cabinet should lead to better choices when it comes to deciding on investment matters.  In this case, Nygard was unfairly denied permission to rebuild his home by the FNM after a mysterious fire damaged a large portion of his home, which was once the subject of television shows and magazines, highlighting the Bahamas and his magical home.  He is prepared to spend $20 million and employ a minimum of 300 Bahamians over the three year-period it will take to rebuild Nygard Cay.  

Hopefully the Government sees the wisdom in making good on its principles with investors, before ones like Nygard lose all faith in the country.

Moore Manager Jumps Ship!

Greg Coffey

If it wasn't enough that Louis Bacon, head of Moore Capital Investments, has to swallow a big pill and dish out $2 billion to investors who trusted his purse this year, he is now losing one of the most critical components in the company.

Greg Coffey spent decades in the hedge fund business, but after four years helping to build Bacon's empire, he found the demands of his job at Moore overwhelming.  The 41 year-old Australian financier oversaw several portfolios from Moore's London office.  He told reporters that he could no longer dedicate himself to the global markets the way he had in the past.

This added another snowball to the avalanche happening within the Moore Capital Investments structure.  When Bacon announced the $2 billion payback to investors due to poor performance, eyes peeled open at the gaping hole in hedge fund which once withheld a solid image.

But the image started breaking down long before then.  No one could forget when newspaper headlines all over the world blasted the embarrassing revelation that Moore Capital was one of several companies caught up in a multi-billion dollar international hedge fund scam.

Louis Bacon

The gaping holes only deepened when Bacon announced after the payback, that he would be downsizing.  He got rid of more than a dozen faithful employees who had served the company for years.  Despite that dedication, they felt a slap in the face when the boss hired his older brother, Zack Bacon III, to do the dirty work.  Zack was responsible for breaking the bad news to employees who didn't have the opportunity to ask any questions to the boss they were supposed to have some kind of relationship with.

But this is the cold, callous nature of Bacon, which has been documented by many reporters, including one who sat down for what was supposed to be a brilliant and positive expose for Bacon in Forbes magazine.

With Coffey now jumping ship despite being one of the most well-known and efficient hedge fund managers, critics are wondering if such a move signals a lack of confidence in the Bacon empire.  Indeed, if Coffey is willing to make such a drastic decision just to detach himself from Moore Capital, it may be a signal, like the thunder before torrential rains, that more gaps may be opening to reveal the truth about what is really going on in Bacon's strange world.

No Win in Court for Bacon

Despite all the trouble Louis Bacon and his Point House Corporation tried to make in getting Supreme Court Justice Stephen Issacs to hold Peter Nygard in contempt of court for not removing the only sign that is left to direct visitors to Nygard Cay.

The "to Nygard Cay" sign became necessary, according to Nygard's attorney Keod Smith, because Bacon had his workers build an easement on a common access road shared between the two neighbors.  

Bacon is the owner of Point House Corporation, which is the applicant in the contempt matter that stems from a legal battle between the two involving a property right of way.

However, Justice Stephen Isaacs yesterday gave no indication as to when he would give a ruling on the matter when he heard submissions from Nygard’s lawyer Koed Smith, and Point House Corporation’s lawyer Robert Adams.

Point House Corporation (PHC) seeks to have Nygard committed to Her Majesty’s Prison for alleged contempt of court. They claimed that Nygard ignored the terms of an order given him by the court at a hearing on June 13, 2012.

LOUIS BACON ‘WILL NOT GET A PENNY’ FROM PETER NYGARD

Nygard’s asks Court of Appeal to overturn Contempt Issue as he fights back against Bacon’s activities at Lyford Cay

By E. Williams

(Monday October 22^nd Nassau, Bahamas) Attorneys for Peter Nygard, the international jet setting fashion czar are going to the Bahamas Court of Appeal to squash a decision by Supreme Court Justice Stephen Isaacs for holding Nygard to be in contempt of court for allegedly breaching an undertaking which Nygard’s lawyers say was never given in the lower court.  

The matter revolves around Nygard’s relentless and dogged pursuit for justice against controversial Hedge Fund manipulator, Louis Bacon, over an Easement or right of way which runs through Bacon’s property and provides deeded access to Nygard’s estate. 

Supreme Court Justice Stephen Isaacs said that he found Mr. Nygard had breached an undertaking to “preserve the status quo” or not to deal with hindrances on the disputed Easement or right of way that Mr. Bacon is alleged to have caused as their civil matter heads into trial.

Attorney Brian Moree QC of the firm McKinney Bancroft & Hughes filed the Appeal on behalf of Nygard on Thursday October 18^th 2012 after procuring a stay of the Order of Justice Isaacs by which Nygard is to pay a $50,000 fine as well as refund Bacon the costs for restoring a number of controversial infrastructure put along the Easement by Bacon, including spy cameras, speed bumps, verges and signage ; that Bacon had placed along the Easement . Bacon is expected to be represented by the law firm of Graham Thompson & Co, which is headed by Attorney Sean McWeeney QC. 

Mr. Smith asserted in the matter before the Lower Court that the so called undertaking that Bacon’s lawyers were relying on to ground their contempt complaint, had never been given.  Further, he also argued that as what Bacon was relying on was ambiguous at best, Bacon’s case for a finding of contempt should fail seeing that fundamentally, the terms of the alleged undertaking could not be proved at the required standard of beyond reasonable doubt. 

 Mr. Moree will argue before the Appeal Court that Justice Issacs erred in dismissing these arguments, and with other points of law, seek to have the contempt finding against Nygard set aside on the following grounds:-

 “1. That the learned Judge erred in law and in fact in holding that there was an enforceable and clear undertaking given on behalf of the Plaintiff at the hearing on the 13^th June, 2012 "...to preserve the status quo…" pending the hearing of the extant interlocutory applications. The learned Judge ought to have found that on the admissible evidence before the Court there were no statements made by Counsel (Keod Smith) for the Plaintiff at the hearing of the 13^th June, 2012 which could properly be construed as constituting a "firm conviction" that an undertaking was being given "...to preserve the status quo…"  as alleged by Counsel for  the First Defendant and that when considering all the admissible evidence in context the statements relied on as constituting the alleged undertaking were in fact ambiguous and imprecise and incapable of giving rise to a binding obligation. 

2. Alternatively, in so far as a binding undertaking was given by Counsel for the Plaintiff at the hearing of the 13^th June, 2012, its terms and scope were restricted to the issue of the signage and did not include the acts complained of in paragraphs (2), (3), (4) and (5) of the Notice of Motion filed on the August, 2012 on behalf of the First Defendant. Accordingly, the learned Judge erred in finding the Plaintiff guilty of contempt by carrying out such acts as alleged by the First Defendant. 

3. In finding the Plaintiff guilty of contempt the learned Judge was required to hold that the precise terms of the undertaking had been proved by the First Defendant beyond a reasonable doubt. Such a holding by the learned Judge, albeit by implication and not expressed, was wholly inconsistent with the admissible evidence before the court and the exchanges between Counsel and the learned Judge. The learned Judge should have found that:

(i) it was unclear as to whether an undertaking was given at all, as opposed to merely being discussed, and 

(ii) if given, the precise scope and terms of the undertaking lacked the clarity and certainty to be an enforceable undertaking. 

4. The learned Judge erred in drawing the inference from the email of the 13^th June, 2012 and the letter of the 10^th July, 2012 that the Plaintiff "...was made aware of the terms of the undertaking given to the court on his behalf to maintain and preserve the status quo until 4 September, 2012."  In fact, the email and letter do not in any way address the issue of whether the Plaintiff’s Counsel told the Plaintiff of the terms and scope of the alleged undertaking which the First Defendant claims was given to the Court. 

5. The learned Judge erred in finding that the Plaintiff had notice of the terms of the undertaking (including its terms and scope) purportedly given by his Counsel. That finding is against the weight of the admissible evidence which establishes that the discussion of the undertaking and the court order during the hearing on the 13^th June, 2012 resulted in a lack of clarity and certainty surrounding the undertaking. 

6. In considering whether or not it was clear beyond a reasonable doubt that the Plaintiff had breached an enforceable undertaking given on his behalf, the learned Judge erred in failing to apply and/or follow the following established general principles: 

(i) there must be clarity and certainty in relation to what was required by an undertaking; 

(ii) where there is a bona fide dispute as to whether an undertaking has been given, the fact that neither the existence nor the terms of the undertaking has been recorded in writing militates against an undertaking having been given; 

(iii) where the terms of an undertaking could equally well be interpreted as having a narrow scope or a wide scope, it is the narrower scope which must prevail; 

(iv) where two interpretations of an undertaking are equally convincing, the less stringent one should prevail; and 

(v) where an undertaking can fairly have more than one meaning, it should be accorded the meaning which is less onerous.

7. The learned Judge erred in law in considering and relying in part on the Transcript of the hearing on the  13^th June, 2012 when determining whether an undertaking was given and if so, the terms and scope of the undertaking in that the Transcript: 

(i) had not been authenticated as required by section 77(8) of the Supreme Court Act, 1996; 

(ii) was a "ROUGH" copy in draft; 

(iii) had not been properly adduced into evidence through an Affidavit which had been duly served on the Plaintiff prior to the hearing on the 17^th September, 2012 in accordance with the requirements of Order 52 rule 3(3) of the Rules of the Supreme Court of the Commonwealth of the Bahamas. 

8. The learned Judge erred in law in failing to apply and/or follow the established general principles set out below when considering the Transcript and specifically when considering the extract from the Transcript set out in paragraph 10 of the Decision: 

(i) all relevant passages must be read together and in their overall context; 

(ii) the court should not carry out a "detailed semantic analysis" of the words revealed by the transcript; and 

(iii) if there is real doubt as to the meaning or effect of what was said, it should be resolved in favour of the person who would be bound.” 

The court action emanates from a civil action in the Supreme Court bought by Mr. Nygard against Mr. Bacon for what Mr. Nygard says is Mr. Bacon’s interference with Mr. Nygard’s access to his property at Nygard Cay along a deeded easement over Bacon’s $30 Million Point House estate as well as a public road reservation not belonging to Bacon but which he has been clandestinely attempting to commandeer since 2005.  Mr. Nygard has reportedly owned Nygard Cay more than 20 years before Mr. Bacon purchased Point House and properties to the east of it. 

Prior to Justice Isaacs being moved on the contempt issue, he had given directions on both sides being readied for trial on this action which is scheduled for February 2013. 

Mr. Nygard is reportedly also pursuing criminal prosecution against Mr. Bacon and several other persons for certain actions which Mr. Nygard claims is a part of a conspiracy by Bacon and these other persons to extort his property from him and drive him out of The Bahamas by interfering with his sole land access roadway to his Nygard Cay as well as to tarnish his name and company’s brand name by perpetrating untruths about him. 

Zack Bacon May Be No Better Than Louis Bacon

Louis Bacon took a bold step that bewildered and shocked many in the world of finance when he announced two months ago that he would be returning $2 billion to investors.  Moore Capital Investments didn't perform so well this year, and the major investment return was coupled with the "big cut" in the investment firm.  More than a dozen faithful employees were let go from louis Bacon's firm.

Zack Hampton Bacon III, Louis' older brother, was brought in to inform the fanciers that they would no longer be operating with the company they had been working for for years.  Maybe these ones had not been able to fit in to the mold that Bacon was looking for, because other former Moore workers went on to establish their own hedge funds, heavily supported by Bacon's financial backing.

But in stark contrast, these dozen or so employees were let go without Bacon even facing them to explain why the harsh and dramatic decision was made.   Zack Bacon did the sacking, and he was touted as the "clean up man" who would fix the problems and the image of Moore Capital in a desperate attempt to save its popular name.

Diandra is Zack Bacon's baby mama and Michael Douglas' ex-wife

But the elder brother may be no better than Louis, who last year had to deal with his company being listed as one of the subjects of an international multi-billion dollar hedge fund scam.  Zack was set to marry Diandra Douglas, the recent ex-wife of Hollywood actor Michael Douglas.  They have surrogate twin sons together, and Diandra finds herself once again annulling a once-committed relationship.

A Harper's Bazaar detailed report of her whirlwind lifestyle pointed out a crucial link that blows the whistle on what the Bacon's are really cooking for breakfast.  "Her former business manager Kenneth Starr pled guilty to fraud, she was exposed to Bernie Madoff's Ponzi scheme through her investments in feeder fund Fairfield Greenwich Group, and the sale of her estate in the tony Santa Barbara enclave of Montecito fell through. (While it's on the market again for $29 million, Diandra is leasing it for events: Hilary Duff and Mike Comrie were the first to use it, for their August wedding," says Harper's Bazaar.

She was exposed in a Ponzi scheme??  Was she possibly fronting for her babies' daddy whose hands have probably long been involved in his brother's hedge fund business.  If it's all in the family, there may be a whole lot more about this family's business practices around the world that should be investigated, including Bacon's Bahamas investments.  

Nygard Faces Hefty Fine

In the ongoing battle between two mega rich neighbors in the illustrious Lyford Cay community in the Bahamas, it seems money and coercion won this time.

Peter Nygard

Louis Bacon and Peter Nygard can't seem to get along and have been engaged in a long court battle concerning the piece of land between  them - the land which they should share and utilize as a common access route to their properties.

Nygard owns the world-reknown  Nygard Cay, the home of what was an architectural masterpiece - a Mayan-themed home filled with surprises, which gained it popularity on the Oprah show and Lifestyles of the Rich and Famous.   The home suffered a devastating fire back in 2011, when the two neighbors were deeply locked in the land war.  Media reports told of a barge being seen drifting in shallow waters off the coast of Nygard Cay just before the fire, but to date, the investigation remains inconclusive.  The Free National Movement Government did not grant Nygard a license to rebuild his home, despite his proposal to hire 300 Bahamians over 3 years and inject $20 million into the project.

Louis Bacon

It was suspected that Bacon's close relationship with the then Environment Minister Earl Deveaux may have had something to do with the cold shoulder to the project's application.  Media reports also exhibited concern for the blind eye that authorities seemed to pay to a myriad of suspicious events at Bacon's Point house home, which is now up for sale to the tune of $35 million.  Strange events at Point House include the discovery of two dead bodies, both found floating in water; the seizure of a pair of high grade military speaker weapons which Bacon's attorney admitted was used to harm Nygard; and the shocking police discovery of at least ten guns left in open view and access throughout Point House.


It has long been suspected that the long dollars that Bacon seems to use to influence decisions in his favor have gotten him out of many a scathing incident.  In the latest turn of events, Supreme Court Justice Stephen Isaacs has ruled against Nygard, finding him guilty of contempt of court on Monday.

He has to pay a $50,000 fine within the next 14 days or he will have to spend 14 days in jail.  Point House Corporation sought to have Nygard committed to prison for failing to remove the words "To Nygard Cay" from the roadway.

It seems like a petty proposition, and two neighbors should be able to agree on signage that assists their visitors.   But in this case, the Lyford Cay Property Owners Association didn't get involved, and now the courts have top deal with the matter.  it is known that prior to Bacon purchasing Point House, the access way to Nygard Cay was easily apparent to any visitor.  Press members themselves have visited Nygard Cay for the many press conferences that were hosted there over the years, as Nygard supports several worthy national sporting organizations and causes.  Today, if one visits the area, Nygard's complaint is apparent.  The roadway has been changed, which leads to confusion for the visitor.  The sign seems absolutely necessary for finding the now small entry route to Nygard Cay.   Nygard had complained about his new neighbor's construction process, which results in a pool of water settling at his entrance during the rainy season.

These facts have led many to question if indeed the decision was fair, but it seems paying the fine would be cheaper than to drop the rest of the cases because the apparent bully has won this time.