A court petition seeking to wind up a Cayman Islands-registered company once controlled by a man wanted locally on a grievous bodily harm charge was filed last week, after attempts to recover at least $4.8 million in the firm’s assets failed.
The Aug. 10 winding up petition was filed by one firm that was controlled by Canadian national Ryan Bateman (B&C Capital Ltd.) against another, Bateman & Company Ltd. B&C Capital Ltd. has already been wound up via court order and is under the direction of joint voluntary liquidators, who are charged with overseeing the winding up process.
The Grand Court petition alleges that the second firm, Bateman & Company, has failed to deliver any cash or securities held following demands from the liquidators. Bateman & Company acted as a custodian for B&C Capital, an investment brokerage, according to the court records. Bateman & Company has “no directors and no management” at present, according to the court records.
“Both [B&C Capital] and [Bateman & Company] are members of a group of companies known as the ‘Bateman Financial Group’ controlled by Mr. Ryan Bateman,” the Aug. 10 petition states.
“The joint official liquidators of the petitioner have been unable to determine exactly what cash, securities or other assets were transferred to [Bateman & Company], but have established that … the company was holding cash amounting to at least $2,381,029.63 and securities to the value of at least $2,456,753.22 on behalf of customers of [B&C Capital Ltd.].”
Securities are usually liquid assets such as stocks, bonds and mutual funds, but the term is sometimes used as a catch-all for numerous types of investments.
The winding up petition seeks a declaration that Bateman & Company is liable for “any shortfall in such cash and securities,” and must pay – via B&C Capital – restitution to investors in the firm.
The petition requests that Chris Johnson and Graham Robinson be appointed as joint voluntary liquidators for Bateman & Company. The two have already been appointed to that role for B&C Capital.
According to a Grand Court order issued on July 22 by Justice Ingrid Mangatal, B&C Capital Ltd. was ordered to be wound up following a petition filed in June by a British Virgin Islands-based creditor of the company. Winding up is the legal, court-supervised process by which assets of a business are sold to pay off creditors. The business is typically dissolved following that process.
The Cayman Compass has contacted B&C Capital Ltd.’s Ryan Bateman several times, including most recently on Monday, for comment regarding the winding up orders and petitions, but has received no response. Bateman left the Cayman Islands in late 2014, missing a court appearance on a criminal charge of grievous bodily harm in connection with a domestic dispute. The Royal Cayman Islands Police Service has said Bateman will be arrested if he comes back to the islands.
BVI-registered Lampten Corp. petitioned the Grand Court on June 2, stating it had established an investment account with B&C Capital in February 2015. The petition further stated that the market value of the account was reported as US$1,689,764.18 as of Aug. 31, 2015.
“To date, no proceeds from a wire transfer have ever been received from [B&C Capital Ltd.] … and the debt has not been repaid,” the petition states. “In the circumstances, it is just and equitable that the company should be wound up.”
Last month, the Cayman Islands Monetary Authority canceled Bateman’s director registration. The decision by the financial regulator alleged that Bateman carried on “business in a manner detrimental to the public interest, or to the interests of the covered entities for which you are appointed as a registered director.”
CIMA stated Bateman was “a person that is not a fit and proper person to hold a position as a registered director.”
In an emailed statement to the Compass earlier this month regarding the CIMA order, Bateman said, “I am consulting professional advisers, will consider their advice and take such action as I may be advised.”