The main players who were seeking to establish a bank in the Virgin Islands, Hong Kong businessman and Group CEO of Financial Holdings (BVI) Ltd, Carson Wen (left) and Deputy CEO of Financial Holdings (BVI) Ltd, Mr Chad C. Holm (inset) are now in battle in a Hong Kong court. Photo: Internet Source

Part of the Writ of Summons filed in the High Court of the Hong Kong Special Administrative Region. Photo: Team of Reporters

Virgin Islands News Online had first and accurately reported in January of this year that a prominent Hong Kong businessman was seeking to open a bank here in the Virgin Islands in late 2016.

The main players were Hong Kong businessman and Group CEO of Financial Holdings (BVI) Ltd, Carson Wen and Deputy CEO of Financial Holdings (BVI) Ltd, Mr Chad C. Holm. Financial Holdings (BVI) Ltd is based in Admiralty, Hong Kong.

However, in a Writ of Summons filed in the High Court of the Hong Kong Special Administrative Region, Financial Holdings (BVI) Limited and Carson Wen are seeking $10,045 from three business persons who are seeking to have a Bank opened here in the Virgin Islands.

There has reportedly been a dispute between one of the original founders of FHL, Mr Wen and three of his executives who have left and are being accused of setting up a competing business and with there being some conditions of licensing that has been put on by Financial Services Commission (FSC), the Bank apparently is having difficulties getting removed.

It is this news site’s information that the Bank was expected to be opened in a matter of six months from now but is allegedly having trouble raising capital.

“If, within the time for returning the acknowledgement of service, the defendant pays the amount claimed and $10,045 for costs, further proceedings will be stayed. The money must be paid to the Plaintiff or his Solicitor,” states the summons.

The Writ of Summons issued October 3, 2016 and is now a public document, is between Financial Holding (BVI) Limited, the 1^st Plaintiff, Carson Wen 2^nd Plaintiff and Chad C. Holm 1^st Defendant, John William Peter Skinner 2^nd Defendant, Ingrid Child (also known as Ms Ingrid Hilary Bishop) 3^rd Defendant.

It states, “Within 14 days after the service of this Writ on you, counting the day of service, you must either satisfy the claim or return to the Registry of the High Court the accompanying acknowledgment of service stating therein whether you intend to contest these proceedings or to make an admission.”

As outlined in a document received by this news site it is that the plaintiffs while acting as the Deputy Chief Executive Officer, the Chief Financial Officer and the Chief Risk Officer of the Financial Holding (BVI) Limited in breach of their fiduciary duties, employee’s duties and/or the equitable duty of fidelity owed towards the Financial Holding (BVI) Limited and without obtaining the consent of the board of the Financial Holding (BVI) Limited, the three defendants worked together to establish an offshore banking institution (the competing Business) which was and/or still is intended to be, and in any event would be, in competition with and to the detriment of Financial Holding (BVI) Limited.

Allegations

The defendants in the matter are, amongst other things, said to have neglected and failed to attend to their respective responsibilities and works.

Chad C. Holm is accused of repeatedly publishing defamatory statements about Carson Wen to Financial Holding (BVI) Limited which allegedly led to Wen’s reputation being seriously damaged and, in addition, Wen is said to have suffered losses and damages.

The defendants in the matter are accused of Breach of trust, breach of fiduciary duties, dishonest assistance in respect of the breach of trust and/or breach of fiduciary duties on the part of Skinner and Child, breach and/or dereliction of employee’s duties, reach of the equitable duty fidelity, breach of duty of care, breach of other statutory duties, acting in conflict of interest against Holding (BVI) Limited and conspiring.

Information is sketchy as to the exact function of the bank, but according to sources, it was said that the bank would cater especially for clients that have difficulty opening bank accounts in their countries due to various regulations and it will be fully electronic.

It was also noted at the discussion, according to reports, that the bank will explore the idea of catering for local clients.