ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – Thursday November 12, 2015 sports | page 17 parry sees New-look suNseT risiNg Keeper is one reason for improvement High of 89 Low of 80 Moderate with wave heights 3 to 5 feet. editorial | page 4 presideNT Trump: whaT would ThaT meaN for CaymaN? PremierHealth More claims get an automatic green light with BritCay! 57% of your claims were auto-adjudicated first* with BritCay. (*2014) BritCay budgets for high volumes of claims. We pay more claims, more accurately and quicker than any other local health insurance provider. BRITISH CAYMANIAN INSURANCE AGENCIES LTD. BritCay House, 236 Eastern Avenue, George Town, P.O. Box 74, KY1-1102 Tel. 949-8699 www.britcay.ky A member of Colonial Group International: insurance, health, pensions, life Call 949-8699 www.britcay.ky cgigrp Judge again slams us regulators in Caledonian bank case Criticizes lack of coordination of SEC investigations miChael kleiN, Charles duNCaN mklein@pinnaclemedialtd.com, cduncan@pinnaclemedialtd.com The New York judge overseeing the U.S. Securities and Exchange Commission case against Caledonian Bank criticized the reg- ulator in an opinion released Tuesday, painting a picture of disorganization and in- efficiency at the SEC that led to the collapse of the Cayman Islands bank. District Judge William Pauley III at the Southern District of New York took the SEC to task earlier this year, accusing the regulator of not having its facts straight when it froze Caledonian’s U.S. accounts, leading to a run on the 45-year-old bank. “This motion comes in the aftermath of a preemptive strike by the SEC,” Judge Pauley wrote in a Nov. 10 order rejecting a motion from another defendant. “That freeze order … precipitated significant collateral damage, in- cluding the collapse of a Cayman Islands fi- nancial institution,” he continued. The U.S. securities regulator investi- gated Caledonian Bank and its brokerage Caledonian Securities together with three other brokers, Legacy Global and Clearwater Securities in Belize and Verdmont in Panama, for their participation in penny stock pump and dump schemes and trading in unregis- tered securities. Caledonian Securities and Verdmont, the brokerages that responded in the case, did not deny having traded the shares but asserted that they did so only on behalf of their customers. A temporary restraining order that froze $76 million of Caledonian’s U.S. assets, which ultimately caused the bank to fail, however, reflected the SEC claim that Caledonian had traded on its own account. In the months after the first filings, the SEC pulled back on its initial accusations. The judge wrote that in the amended complaint, “Characterizations that Caledonian or Verdmont has acted as principals and lined their pockets were recast or abandoned altogether.” Contrary ImmIgratIon revenues at $89.5m Fee earnings nearly triple in decade breNT fuller bfuller@pinnaclemedialtd.com The Cayman Islands Immigration Department took in $89.5 million in revenues during the last government budget year, ac- cording to the Ministry of Home Affairs an- nual report, nearly tripling fees collected by the agency from a decade ago. The $89.5 million collected during the 2014/15 fiscal year, which ended on June 30, represented between 13 percent and 14 per- cent of total central government earnings for the year. Work permit fees collected by the govern- ment during the year – approximately $60.4 million – made up the lion’s share of the Immigration Department’s earnings. Some other areas making up the immi- gration-related fee collections included $2.2 million in permanent residence certificate issue fees, $1.6 million in the continuation of working rights for individuals who applied to remain in Cayman on a permanent basis, about $500,000 in fines from immigration en- forcement activities, $1.3 million in repatria- tion fees and $619,000 in fees for individuals awarded Caymanian status. The fee collections represented about a 27 percent increase from those generated during the 2010/11 budget year. Kimpton names new hotel ‘Seafire’ James whiTTaker jwhittaker@pinnaclemedialtd.com The Kimpton group plans to name its 10-story Grand Cayman hotel the Seafire Resort and Spa, Seven Mile Beach. The name was inspired by the fiery sun- sets over Seven Mile Beach, according to Kimpton CEO Mike DeFrino. Officials from the San Francisco-based hotel chain were in Grand Cayman on Wednesday to launch the brand of the new hotel, owned and built by the Dart group. For Kimpton, which operates more than 60 “boutique-style” hotels, it is its first project outside of North America. “We see this is our first property in the Caribbean. A resort of this quality and lo- cation is rare for any company and we’ve put a great deal of effort and concentration behind making sure it does well and fulfils the dreams of everybody,” said Mr. DeFrino. The outer structure of the hotel, which features two 10-story towers, is com- plete and it will be outfitted over the next 12 months, ahead of a planned November 2016 opening. One of the hotel’s distinctive features is the location, between the North Sound and Seven Mile Beach. “Once complete, Seafire will be one of the largest resorts along Seven Mile Beach, PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 9 » PLEASE TURN TO PAGE 8 » The name of the new waterfront hotel being built by Dart was inspired by the fiery sunsets over Seven Mile Beach. - PHoto: taneos ramsaY2 LOCAL&REGIONAL Thursday November 12, 2015 • Cayman Compass www. REGmovies.com SATURDAY NIGHT: For your viewing pleasure, minors under the age of 18 will not be admitted to any lm starting after 6pm, unless accompanied by their parent. © y x *Additional charges will apply per 3D ticket requested. - THURSDAY - $8.00 SPECTRE (PG13) 12:30 I 3:45 I 6:45 I 7:30 I 9:35 GOOSEBUMPS 3D (PG) 1:30 I 4:00 2D I 7:05 I 9:40 2D LAST WITCH HUNTER (PG13) 4:10 PEANUTS 3D (G) 12:35 I 2:50 2D I 5:05 2D I 7:20 HOTEL TRANSYLVANIA 2 3D (PG) 12:45 2D I 4:10 I 7:10 2D I 9:30 BURNT (R) 1:10 I 4:20 I 10:05 www.tonymosleylifeinsurance.com Camana Bay road closed A broken sewer main led to the tem- porary closure Wednesday of Solaris Avenue, north of Camana Bay. According to a notification issued by police on Wednesday, the broken main led to the creation of a sink hole “com- promising the integrity of the main road in the vicinity of the Solaris Avenue/ Esterley Tibbetts Highway intersection.” Police said signs had been erected at the site and a security officer has been assigned “to monitor the intersection during peak hours.” The road is expected to reopen by noon on Thursday. A broken main closed Solaris Avenue. - PHOTO: TANEOS RAMSAY Cuba: Agreements on flights to US likely in coming months HAVANA (AP) – Cuban of- ficials said this week that negotiations on the nor- malization of relations with the United States are likely to produce agree- ments on regularly sched- uled airline flights and three other areas in the coming months. U.S. officials have been appealing to Cuba to help produce concrete results in the normalization talks in order to solidify President Barack Obama’s opening to Cuba announced late last year after more than 50 years of official hos- tility. Obama’s strategy faces vehement opposition from Cuban-American law- makers and his administra- tion is struggling to make progress despite the U.S. trade embargo on Cuba and Cuba’s own restrictions on trade and commerce. Josefina Vidal, Cuba’s head of North American affairs, told reporters at the Cuban Embassy in Washington that agreements on flights, environmental protection, direct postal ser- vice and the fight against drug trafficking are very likely by the end of the year. “We are very close to the first agreements that we can announce in the next few weeks,” she said. “I am almost certain that by the end of the year we can an- nounce some results in those areas.” Gustavo Machin, deputy director for U.S. affairs at Cuba’s Foreign Ministry, told reporters in Havana that a deal on direct flights could be struck in the “short term.” “I think this is one of the issues that we have advanced on most and on which we are close to reaching an agreement,” Machin said. “We are talking of one month, two months, three months.” Both Vidal and Machin emphasized that airlines would have to make their own deals with the indi- vidual governments before flights could actually begin. Direct flights are seen as a potential game changer in U.S. travel to Cuba, which has risen dramati- cally since Obama’s an- nouncement and the sub- sequent loosening of U.S. restrictions on travel to Cuba. Travelers to Cuba from the U.S. must now take expensive and chaotic charter flights that feature three-hour check-ins for a 45-minute flight and draco- nian limits on baggage. POlicE’S NORTH SidE cliNic REScHEdulEd Friday, Nov. 13 will be new date A Royal Cayman Islands Police Service clinic that was postponed last Friday due to bad weather has been rescheduled to this Friday, Nov. 13. According to a statement from po- lice, the session will be held from 5-7 p.m. at Chisholm Supermarket in North Side. “We hope that North Side residents will take this opportunity to drop by and speak with offi- cers,” police spokeswoman Jacqueline Carpenter said. Police launched a second round of the public clinics earlier this month and met with the public throughout the districts, in front of stores or in community centers. The first round of clinic sessions were held in June. Police say the clinics give members of the public an opportunity to meet police officers, who man tables and distribute information and crime prevention tips. It also gives the public a chance to express any concerns or suggestions relating to crime and po- licing in their districts to the officers and to talk about the results of a survey conducted during the clinics in June. (AP) – The New York at- torney general’s decision that daily fantasy sports betting sites FanDuel and DraftKings are illegal gambling opera- tions in his state is a major blow to the companies, but the multibillion-dollar in- dustry could have more legal headaches yet to come. While the sites have opted not to do business in a handful of states where regu- lators have made clear they’re not welcome, they have been up and running in a number of others – like New York – where they’re legally dubious. In Florida and Arizona, it’s illegal to wager on contests of chance or skill. Several states in which the companies are operating have laws similar to New York and Washington, while a few, such as Tennessee, Arkansas and Vermont, have even stricter prohibitions. That could pose more risk than the companies or their backers – big media companies and professional sports leagues – have let on. Federal law crimi- nalizes gambling businesses that operate in violation of state law, with penalties that can include prison time, fines and seizure of assets. “This creates a real vul- nerability for the industry,” said Daniel Wallach, a sports and gaming lawyer in Florida. “That statute gives the government the power to take it all away. They can shut you down.” By his count, daily fantasy sports sites have been oper- ating on shaky legal ground in about a dozen states. New York Attorney General Eric Schneiderman on Tuesday ordered DraftKings and FanDuel to stop accepting bets in the state. He said the companies were offering con- tests of chance – illegal gam- bling under state law – and he accused the companies of misleading customers about their chances of win- ning in a barrage of advertise- ments. The companies said Wednesday they intend to fight to remain in New York, in court if necessary. While supporters have pointed to an exemption Congress carved out for fan- tasy sports in the 2006 Unlawful Internet Gambling Enforcement Act, that legis- lation did not override state gambling prohibitions or other federal statutes, including the Illegal Gambling Business Act. That law makes it feder- ally illegal to run a gambling business that operates in vi- olation of state law. Whoever conducts, finances, manages, owns or partly owns such a business can be fined or im- prisoned for up to five years. Patchwork of laws poses legal quicksand for fantasy sports Workers set up a DraftKings promotions tent in the parking lot of Gillette Stadium, in Foxborough, Massachusetts, before an NFL football game between the New England Patriots and New York Jets. - PHOTO: APThe islands’ most-trusted news source 3 Cayman Compass • Thursday November 12, 2015 Images for illustrative purposes only, subject to change. When we open in November 2016, Kimpton Seafire Resort + Spa and The Residences at Seafire will have much to celebrate. The boutique pioneer’s first Caribbean property. Dart’s first Seven Mile Beach resort and residential development. Grand Cayman’s first new hotel in a decade. Seafire will be rich in spirited design, contemporary architecture, native gardens, warm personal service and memorable Caymanian flavour. We can’t wait to find ways to make your experience extraordinary. INTRODUCING PREPARE FOR A SENSORY ADVENTURE. The islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. Thursday November 12, 2015 • Cayman COmpass Money. Power. Influence. Popularity. Whatever “it” is — Donald Trump’s got it. Leveraging his pop culture stardom and personal fortune, the straight-talking multibillionaire real estate mogul has launched a passionate campaign for the highest elected office in the United States. In addition to leading an upheaval in the “conventional wisdom” in American politics, Mr. Trump is also leading in most major opinion polls on the continuing Republican primary contest. We admire many of the characteristics and accom- plishments of Mr. Trump — his disdain for political cor- rectness, his undistilled entrepreneurial spirit, his string of businesses successes (and demonstrated ability to shake off the occasional, inevitable failure), and his eponymous luxury real estate developments across the globe. On a more personal note, our co-publishers have had the pleasure of spending time with Mr. Trump’s daughter Ivanka, who is a businesswoman, designer, model and TV personality. During a brief visit to Grand Cayman in 2011, where she introduced her Ivanka col- lection at Diamonds International, Ms. Trump was an impeccable combination of elegance, grace and profes- sionalism. (This speaks well to her upbringing and the working environment of her family’s business empire.) If Mr. Trump weren’t running for president of the United States, in fact, we’d be keen on inviting him down to the Cayman Islands to attempt to persuade him to invest in a golf course, resort development, skyscraper, maybe all of the above. “Trump” and “Cayman” — Could there be a better duo? However, Mr. Trump is running for president. And as good for Cayman as developer Trump would be — that’s how potentially bad for Cayman that President Trump might be. You see, one of the key planks in Mr. Trump’s economic platform is the “repatriation” of American corporations, and their potential tax revenue. Basically, by revising the U.S. tax code and offering certain incen- tives, Mr. Trump would seek to bring those American companies and their earnings back to the U.S. That sort of philosophy, of course, is bad news for jurisdictions such as Cayman. We, after all, are in the business of keeping such money parked securely offshore. When it comes to corporate profits, Ameri- ca’s “loss” is Cayman’s “gain.” In response to the above scenario, we anticipate two points of contention. Does Mr. Trump have a real chance at becoming president? And, does the identity of the U.S. president actually make a difference to Cayman? The answer to both questions is, emphatically “Yes!” Poll results consistently place Mr. Trump at or near the top of the Republican Party field in the key “early” states of Iowa, New Hampshire and South Carolina. Winning all three would make Mr. Trump pretty much unstoppable all the way through the GOP primary. In the betting parlors, oddsmakers are giving Mr. Trump about an 11 percent chance of winning the general election in November 2016, ahead of former Florida Governor Jeb Bush (7 percent) and behind Florida U.S. Senator Marco Rubio (20 percent). For those who may be skeptical of what impact the U.S. president has on Cayman’s financial outlook, consider current President Barack Obama’s infamous campaign condemnation of our own Ugland House (home to law firm Maples), followed by the rollout of draconian measures such as the Foreign Account Tax Compliance Act. (Do you think things may have been different under a Mitt Romney presidency, who in contrast is rather familiar with the workings of Cayman’s financial sector?) The policies of the Obama administration have been practically punitive toward Cayman, compared to the previous regimes led by George W. Bush and Bill Clinton (who, along with Jimmy Carter, are former presidents who have stepped foot as guests on our welcoming shores). Which brings us to the alternative scenario to Mr. Trump, who would be his most likely Democratic opponent in the general election, and whose husband, as we mention above, has not been particularly unfriendly to our fair islands. We speak, obviously, of — gulp — President Hillary Clinton. President Trump: What would that mean for Cayman? Bill O’Reilly makes a mess of history WASHINGTON – Were the lungs the seat of wisdom, Fox News host Bill O’Reilly would be wise, but they are not and he is not. So it is not astonishing that he is dou- bling down on his wager that the truth cannot catch up with him. It has, however, al- ready done so. The prolific O’Reilly has, with his collaborator Martin Dugard, produced five “his- tory” books in five years: “Killing Lincoln,” “Killing Kennedy,” “Killing Jesus,” “Killing Patton” and now the best-selling “Killing Reagan.” Because no one actually killed Reagan, O’Reilly keeps his lucrative series going by postulating that the bullet that struck Reagan in March 1981 kind of, sort of killed him, although he lived 23 more years. O’Reilly “reports” that the trauma of the assassination attempt was somehow caus- ally related to the “fact” that Reagan was frequently so mentally incompetent that senior aides contemplated using the Constitution’s 25th Amendment to remove him from office. But neither O’Reilly nor Dugard spoke with any of those aides – not with Ed Meese, Jim Baker, George Shultz or any of the scores of others who could, and would, have demolished O’Reilly’s theory. O’Reilly now airily dismisses them because they “have skin in the game.” His is an inter- esting approach to writing history: Never talk to anyone with first-hand knowledge of your subject. Instead, O’Reilly made the book’s “centerpiece” a memo he has never seen and never tried to see until 27 days after the book was published. Then Dugard asked the Reagan Library to find it. Recently on Fox, O’Reilly put this on the screen from Sue Janzen of Yorba Linda, California: “We went to the Reagan Library, and were told they do not sell Killing Reagan because it’s not fac- tual.” Then O’Reilly said: “You were deceived, Sue. The Reagan Library is angry at Martin Dugard and me be- cause we’re seeking” the Cannon memo. He added: “The memo’s disappeared. But Dugard and I are on the case and the library is not happy about it.” “Disappeared?” His crude intimation was that the al- legedly deceptive library is hiding the memo. The li- brary, however, has never had it because when James Cannon wrote it he was not a member of the White House staff, hence the memo was not a “presidential record.” O’Reilly recently canceled an interview with Meese, who says O’Reilly told him he was “vetting” the memo. (How does one vet a memo one does not possess?) O’Reilly says he canceled the interview because Meese set “conditions.” Meese, who was eager to be interviewed, waived any conditions. The “centerpiece” memo was written by Cannon at the request of former Sen. Howard Baker when Baker was about to replace the fired Don Regan as Reagan’s chief of staff. The memo assessing White House conditions ap- parently included disparage- ments of Reagan from some unhappy Regan staffers. The memo was presented to Baker at a meeting at Baker’s home attended by A.B. Culvahouse, who the next day would become counsel to the president. Culvahouse re- members the normally mild- mannered Baker brusquely dismissing the memo: “That’s not the Reagan I met with two days ago.” Neither Baker nor Culvahouse considered the memo important enough to save. Meeting with Reagan the next day, Baker and others found no reason to question his competence. O’Reilly impales him- self on a contradiction: He says his book is “laudatory” about Reagan – and that it is being attacked by Reagan “guardians” and “loyalists.” How odd. Liberals, who have long recognized that to discredit conservatism they must devalue Reagan’s presidency, surely are de- lighted with O’Reilly’s as- sistance. The diaspora of Reagan administration alumni, and the conserva- tive movement, now recog- nize O’Reilly as an oppor- tunistic interloper. He began his profitable paltering with America’s past with “Killing Lincoln.” Historians advising the National Park Service, which administers Ford’s Theatre, found a multitude of errors in the first, uncorrected ver- sion, in which, for example, O’Reilly repeatedly places Lincoln in the Oval Office, which was built in 1909. The Theatre bookstore still does not sell “Killing Lincoln.” The Theatre gift shop, a commercial rather than ed- ucational entity, does. Four “histories” later, O’Reilly re- mains slipshod. In “The Great Gatsby,” F. Scott Fitzgerald writes of Tom and Daisy Buchanan who “smashed up things” and then “retreated back into … their vast careless- ness … and let other people clean up the mess they had made.” Tidying up after O’Reilly could be a full-time job but usually is not worth the trouble. When, however, O’Reilly’s vast carelessness pollutes history and debases the historian’s craft, the mess is, unlike O’Reilly, to be taken seriously. George Will’s email address is georgewill@washpost.com. © 2015, Washington Post Writers Group GEORGE F. WILL Printed and Published by: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town send us yOur VieWs Or neWs: P.O. Box 1365 Grand Cayman, KY1-1108 Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com adVertise With us: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS daVid r. legge and Vicki l. legge EdITOR-In-CHIEf daVid r. legge A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will find their own way” O’Reilly impales himself on a contradiction: He says his book is “laudatory” about Reagan – and that it is being attacked by Reagan “guardians” and “loyalists.” How odd. A book by media personality Bill O’Reilly on former U.S. President Ronald Reagan has raised the ire of columnist George Will. - Photo: Michael evans/the White house via the Washington Post5 LOCAL NEWS Cayman Compass • Thursday November 12, 2015 Register at www.cispa.ky For more information, please contact us on 345-749-3360 or email admin@cispa.ky CISPA Professional Development Week In association with the Cayman Islands Government 3-Day intensive training, earn up to 22.5 hours of CPD 3 streams each day including ethics, performance management, accounting updates for public and private sectors, cyber security, HR strategy, and more. When 18, 19, 20 November 8:30 a.m. - 5:00 p.m Where Marriott Grand Cayman Beach Resort Cost $125 per day, includes lunch 175720-Ad-Prof-Develop-week-thir1 111/10/15 12:54:24 PM Operation Tempura case judge joins Cayman’s appeals court BrenT Fuller bfuller@pinnaclemedialtd.com A former U.K. High Court judge who once presided over various Cayman Islands court actions related to the ill-fated Operation Tempura investi- gation has joined Cayman’s Court of Appeal. Justice Sir Alan Moses was sworn in by Governor Helen Kilpatrick earlier this month. Justice Moses, a High Court Judge for 10 years and then a U.K. Court of Appeal judge, was most recently ap- pointed as chair of Britain’s Independent Press Standards Organisation, formed after the Leveson Inquiry of 2011- 2012 into various corrupt and unethical practices in the U.K. press. He also worked as a bar- rister in England and else- where in Europe, notably de- fending the first court cases before the European Court of Human Rights related to the release of prisoners serving life sentences. In Cayman, Justice Moses is also known as the judge who presided over certain matters related to the legal fallout from Operation Tempura. During one such case, involving the lawsuit filed against the government by former Royal Cayman Islands Police Commissioner Stuart Kernohan al- leging wrongful dismissal, Justice Moses admitted to being “bewildered” by the twists and turns of the ongoing investigation. It was Justice Moses’s ruling in the case that dropped former Cayman Governor Stuart Jack as a de- fendant in the lawsuit, which Mr. Kernohan settled with government in 2014. Justice Moses also pre- sided in the early stages over an open records fight in- volving certain records related to the Tempura investigation. That open records matter remains to be decided and could be headed back for a third round of court hearings next year – four years after the Freedom of Information request was made. The records sought are related to a complaint Operation Tempura’s former senior investigator Martin Bridger made against cer- tain members of the local judiciary and the attorney general’s office and a sub- sequent evaluation of the complaint. Former Governor Duncan Taylor declared that complaint by Mr. Bridger to be unfounded. Quarry crush victim tells story of survival Jewel levy jlevy@pinnaclemedialtd.com Sheldon Scott should be a dead man. The 25-year- old was seconds from being crushed to death in an indus- trial accident at the East End quarry when he was pulled to safety. It took nine surgeries in Miami to save his leg, which was crushed in the gears of the quarry’s conveyer belt. But Mr. Scott considers himself a lucky man. The soft-spoken young man who loves to play basket- ball and football was fighting for his life after the incident in April this year. “I am very thankful to be alive – I never thought I would survive that,” said Mr. Scott. “I am doing much better, but I am still badly damaged. It might be a long time be- fore I am able to do any heavy work again,” he said. The day of the acci- dent started like any other workday for Mr. Scott. He arrived at around 7 a.m. to clean up around the conveyer belt. After finishing his work, a blast of wind caught his shirt and blew it into the turning gears of the conveyer belt. Mr. Scott shouted, but no one could hear him above the noise of the equipment – at the time he was the only one working on the ground around the machine. “I fought to get away but the belt continued to pull me in,” said Mr. Scott, recalling that terrifying moment. Desperately trying to catch someone’s attention, he looked up and saw his uncle, Lawson Scott, in the loader. Flailing his arms and shouting, he was able to get his atten- tion. As his uncle turned the loader around, he immedi- ately saw that his nephew was in trouble. Lawson Scott left the loader and ran to try and free his nephew. “He fought to get me loose but could not,” Mr. Scott said. He said his uncle ran to the control room to turn off the machine but by that time the machine had already pulled his leg in and was crushing it. “When the ma- chine stopped, I dropped to the ground,” he said. He said he was still con- scious and heard his uncle calling 911. Mr. Scott said when he was taken to the Cayman Islands Hospital, doctors wanted to amputate his leg because it was so badly crushed, but his family did not agree and had him flown to Miami for further treatment. While in Miami, Mr. Scott said, he underwent nine sur- geries. His leg was so swollen at times, he said, he could not move it. “I am very thankful to be alive. I never thought I would survive something like that,” Mr. Scott said. He still thinks about that day. “I just keep the faith,” he said. “It could have been worse, I could have lost my legs.” He said doctors told him he will not be able to play basketball or football again, but with a strong determina- tion and a smile on his face despite being in pain, Mr. Scott said he will find some other sports to do. He retains a positive attitude. “I think I am coming along very fast with the healing, but I don’t let it keep me down – life must go on – especially since I am so surprised to be alive,” he said. “I have come a long way; it is remarkable,” he said. Sir Alan Moses Ministry takes up auditor’s challenge BrenT Fuller bfuller@pinnaclemedialtd.com After taking a verbal drubbing from Cayman’s au- ditor general for a number of years, at least one govern- ment ministry has responded – by following his advice. The Ministry of Home Affairs on Tuesday published a full annual report along with its financial statements, detailing the activities of all of its various agencies during the 2014/15 budget year. “The report is chock-full of information about the 10 agencies that comprise the ministry,” Chief Officer Eric Bush said. The ministry over- sees the operations of most public safety agencies, in- cluding police, fire, prisons, 911 and hazard management. Acting Auditor General Garnet Harrison said last week that the major problem for government entities in the annual reporting of finan- cial statements is that they often do not explain what the numbers mean or put them in any context. “Unlike the private sector, it’s not good enough just to say whether you made a profit or incurred a loss,” he said. “Public sector entities also need to explain what they did with the money.” Mr. Bush said the 2014/15 annual report for the min- istry was an attempt to do so.Thursday November 12, 2015 • Cayman Compass DISTRICT DAYS 6 District Days Bodden Town In the Nov. 10, 1965 edition of the Caymanian Weekly, a prede- cessor of the Cayman Compass, Bodden Town correspondent Arthur Hunter wrote: “Following a spate of shoot- ings in this district over a year ago, and shortly after the assas- sination of President Kennedy in Dallas, this Town was in jest re- ferred to as ‘Dallas.’ It is com- mendable that the Town has not lived up to this name, as of the 358 prosecutions commenced in the several Courts of this Island since the beginning of 1965 only 4 have originated from Bodden Town. How fortunate it is that the citizens of this area have proven to be such law abiding citizens, for had they been oth- erwise one would hate to think of the ensuing consequences. The reason for that statement is that no Police Officer is officially stationed at the several eastern districts of Grand Cayman and therefore should any serious trouble occur the Police have to be summoned from George Town to deal with the matter. “With internal communica- tions being what they are, such a delay could prove fatal one day. From a complement of more than 15 Police Officers why cannot at least one be stationed in the eastern districts? The lives and property of the citizens of this area warrant the same protec- tion as that of any other area of this island and one would hope that in the near future favour- able consideration is given to the matter and the vacuum filled.” 50 years ago appeal for Bodden Town police station New church in the works for Breakers The old Breakers Church, above, opened in 1952 and a new one, right, is under construction. - Photos: Jewel levy Jewel levy jlevy@pinnaclemedialtd.com For the first time in 63 years, the congrega- tion of Breakers Church of God is preparing to move into a new building. The new church, dedicated to the late Pastor Esau Brooks for his many years of labor for the Lord, will cost around $500,000 to erect. The congregation is hoping to move into the building by late summer of next year. Located just down the road from the old worship center, the new church will be equipped with Sunday school classrooms, a pastor’s office, rest rooms and a kitchenette. Church member Meredith Rankine is looking forward to the new church’s opening. “This will better cater to our congregation, especially during Good Friday services, as we now have to set up a tent outside to accom- modate the attendees,” she said. “We will also be able to accommodate funeral or wedding services as it will be large enough for 150 at- tendees. It will also have a parking lot.” She said the new building is needed be- cause the existing structure on the beach is in poor condition. It was incorporated as the Church of God Full Gospel Hall in George Town and no longer owned by the congregation of Breakers. Church of God Full Gospel Hall Board Trustee Araunah Powery said as far as he knew, the Breakers congregation was allowed to use the church until the passing of Mr. Brooks. Then the property was passed on to Full Gospel Hall church. He said at the time of writing that there were no plans yet as to what will become of the old building, which was to be discussed in the next church meeting. He said the last thing brought up about the little church was the people of Breakers had offered to buy it, but that did not happen. The story of the establishment of the Church of God Breakers goes back to the late 1940’s when the late Ezra Sheets, a pastor from Upland, California, decided to hold “cot- tage” meetings in the yards of various residents in Breakers. They were so well attended that he thought a church was needed. Pastor Sheets flew back to California, sold his home and returned to Cayman to use the proceeds to build the little church in Breakers. To show their appreciation, Kampton Webster and his wife Ella donated the land on which the church now stands. Through the dedicated labors of the residents of Breakers, the original church was built. During the process of building the church, Pastor Sheets also included provisions for a cistern so residents would no longer have to collect water from the rock well. The residents of Breakers saw the results of their back breaking labor come to fruition when the church was dedicated and officially opened in 1952. Pastor Sheets led the congregation in Breakers until his death, at which time Pastor Luke Forbes took the reins. Upon the death of Pastor Forbes, the pastorship was continued by Pastor Brooks, who passed away Aug. 18 at 82 years of age. The church still continues services with an enrollment of about 60 attendees. Original church was constructed 63 years ago; the new building will be a big improvement, featuring Sunday school classrooms, a pastor’s office, rest rooms and a kitchenette.Cayman Compass • Thursday November 12, 2015 DISTRICT DAYS 7 District Days Bodden Town GeorGe Nowak Quietly propelling a boat with “push sticks,” rather than oaring, keeps the noise level down so as not to scare off fisher- men’s prey. Such a sight is not as common these days, however Frank Sound is still a favorite spot for fishermen who cast their nets from the shore. They are after sprats, a favorite bait fish which very much resembles a sardine in looks, size and taste. Sprats travel in large schools with other fish and swim continuously throughout the day. As well as being used for bait, they are also eaten and are rec- ognized for their nutri- tional value as they contain high levels of polyunsatu- rated fats, considered ben- eficial to the human diet. Locally they are a fa- vorite when seasoned with salt and pepper, then deep fried until they are so crisp you can eat the entire fish from head to tail. The South Coast Bar and Grill in Breakers reg- ularly features sprats on their menu. This image is from the book “The People Time Forgot” by George Nowak. Individual prints can be purchased at the Cayman Islands National Archive, profits from which are used to support projects of the Cayman Islands National Museum. FraNk SouNd Thomas russell Beach is a calm oasis just east of Bodden Town. The many beaches of Grand Cayman all have their particular charms, and the experience at Thomas Russell Beach in Bodden Town is one of peace and tranquility. The beach is named after one of Cayman’s most popular governors, Thomas Russell, who held that position from 1974 to 1981. He oversaw a period of rapid economic and so- cial growth in the Islands, and developed strong ties with Cayman and its people. After leaving his post, he established the Cayman Islands Government Office in London, serving for eight years as the first Cayman Islands Representative in the U.K., from 1982 to 1990. Featuring excellent snorkeling, the beach, which lies east of the Coe Wood Public Beach, has new picnic benches for public use. The benches were donated and paid for by the Savannah/Newlands Community Development Action Committee and the Bodden Town Heritage Committee, which commissioned Wood Works to do the job. Continuing with the upkeep of the beach, the ac- tion committee also donated some fill to fix a wall by the beach. Thomas russell was Cayman Islands governor from 1974 to 1981. Thomas russell Beach ideal for snorkeling Two unidentified fishermen in a motorless boat use their ‘push stick’ along the shallows of Frank Sound at sunrise in this photo taken in the late 1970’s. - Photo: GeorGe NowakThe islands’ most-trusted news source 8 Thursday November 12, 2015 • Cayman Compass 179995-Ad-RotaryTreeLighting-3cx1 111/10/15 2:10:00 PM to what the SEC said in May, Judge Pauley wrote, “the SEC alleges in its Amended Complaint that Caledonian may also have been a broker.” “These amended allega- tions are seismic,” he wrote, noting the SEC was “re- treating from its allegations that Verdmont sold the penny stocks for its own benefit.” Lack of coordination SEC lawyers, whose dec- larations in obtaining the freeze order amounted to “government overreach,” ac- cording the judge, were ap- parently also not aware that the defendants in the case were subject to sep- arate SEC investigations and lawsuits. The SEC attorney super- vising the investigation told the court that SEC staff had no knowledge of any rele- vant customer accounts at Caledonian and Verdmont at the time the action was commenced. “But it appears that this was not true for other attor- neys at the SEC who were al- ready investigating the same network of offshore entities,” Judge Pauley wrote in the Nov. 10 order. Five months before the complaint, the United States Attorney for the Eastern District of New York indicted Legacy Global and a number of other defendants for al- legedly concealing their ben- eficial interest in U.S. issuers and “engineering … artifi- cial price movements and trading volume” in the stocks of those companies. “Embarrassingly, it was a foreign regulator – not the SEC lawyers in New York – who finally suggested to the SEC’s Washington lawyers that they rummage through their own files for answers to the questions they were asking about Verdmont and its clients,” Judge Pauley wrote. The SEC attorney who signed the Caledonian and Verdmont complaint ac- knowledged that he did not know the foreign regulator had sent the documents to the SEC’s New York office in the separate case. “Thus, the SEC attorneys in Washington, D.C. were ei- ther unaware that SEC at- torneys in New York were pursuing an investigation of some of the same defen- dants elsewhere, or chose not to coordinate with them,” Judge Pauley noted. “Either scenario is disheartening.” On June 18, four months after initiating action against Caledonian, the SEC filed a separate lawsuit in the district of New York al- leging Norstra, one of the companies whose stock was allegedly manipulated in the Caledonian suit, par- ticipated in a pump and dump scheme. The New York SEC attor- neys did not mark the case as related to Caledonian and only later confirmed that some facts and circum- stances were implicated in both cases. But coordi- nated pretrial proceedings were not necessary, they ar- gued, because the SEC was suing different defendants on different legal theories in the second action. The Washington SEC attorneys later said the two actions “overlapped a bit.” The two cases were sub- sequently assigned to the same court, but the SEC filed two more actions in the Eastern District of New York involving three offshore enti- ties named as defendants in the Caledonian case. One case, filed on June 23, involves Gregg Mulholland, who allegedly controlled Legacy Global and used Caledonian Bank and Legacy Global, as well as an un- named bank in the Cayman Islands, to make unregis- tered distributions of penny stock securities of the com- pany Vision Plasma. Another case concerned Phil Kueber, who alleg- edly controlled Clearwater Securities. The lead SEC attorney in the Norstra case tried to ex- plain to Judge Pauley in a pretrial hearing the reason for five separate cases in- volving 16 SEC lawyers in two districts: “You won’t like the answer, your Honor, frankly because it will in- dicate a lack of coordina- tion that we tried to repair in the interim.” He said he knew that the Caledonian case, in- volving Norstra, had been filed but he not been sent or seen the complaint. “And serendipitously, when I went to file this complaint, the very next day I saw on our news clip summary … a notice that the Caledonian com- plaint had been amended, and I said to my colleague … we should get that com- plaint and make sure there is nothing in it that we don’t know about.” Judge Pauley wrote that it is “hard for this Court to believe” that the SEC does not have systems in place to ensure that its staff is aware of investigations in- volving the same facts, indi- viduals or entities and that no enforcement staff is mon- itoring activities. “A self-examination may be appropriate,” the judge suggested. The SEC argued it has as yet to receive evidence dem- onstrating that Caledonian acted as a broker because, unlike Verdmont, the bank has not provided any cus- tomer information, citing Cayman Islands bank se- crecy laws. The proposed settlement between Caledonian and the SEC, which first has to be approved by the Cayman Islands Grand Court, “should address any discussions be- tween Caledonian and the SEC about the beneficial ownership of the shares Caledonian sold,” when it is submitted to the U.S. court, Judge Pauley said. With the Nov. 10 order, the judge rejected a motion by Verdmont for a judgment on the pleadings, effectively ordering the case against Verdmont to go to trial. and the only resort to offer unmatched, unobstructed water views from every guest room, including the spectac- ular sun-kissed horizon that inspired the resort’s name,” according to a marketing statement from Kimpton on Wednesday. Though Kimpton oper- ates multiple hotels, it says each has its own name, char- acter and identity and no two venues are the same. According to the hote- lier, signature features of the Seafire resort will be the ar- rivals area, featuring tropical landscaping and an elevated lobby area with spectacular sea views. The grounds of the hotel will feature a 1,300-square-foot lawn, a communal fire pit and pool. The north end of the property backs on to the beach and will feature a water sports area, ac- cess to biking and walking paths and a retail and res- taurant promenade. Blatter in hospital after stress-related ‘breakdown’ LAUSANNE, Switzerland (AP) – Sepp Blatter remains in a Swiss hospital after what his spokesman called a “small breakdown” re- lated to stress. The 79-year-old sus- pended FIFA president ex- pects to leave the hospital on Monday, Zurich-based spokesman Klaus Stoehlker told The Associated Press on Wednesday. “[Blatter] will be back offi- cially in business on Tuesday next week,” Stoehlker said in a telephone interview. “The checkup is finished and he is recovering.” On Friday, Blatter’s American lawyer told the AP that he was at a hospital. On Wednesday, long-time Blatter aide Walter Gagg told the AP “he was always at the hospital.” Blatter is appealing against his 90-day provi- sional ban by the FIFA ethics committee over suspected fi- nancial misconduct. He still hopes to host the Ballon d’Or award cer- emony in Zurich on Jan. 11, after the suspension expires, Gagg said on the sidelines of a meeting of Olympic sports. Blatter’s main goal is to host the FIFA election con- gress on Feb. 26, Gagg said. On that day in Zurich, FIFA will elect a successor to Blatter, ending his more than 40 years working for soccer’s governing body. Even if Blatter gets his in- terim ban lifted, by the FIFA appeal committee or Court of Arbitration for Sport, he then faces a full hearing be- fore the ethics committee. Blatter and UEFA President Michel Platini were banned in the wake of a Swiss criminal case inves- tigating financial miscon- duct at FIFA. The criminal case cen- ters on whether Blatter mis- used FIFA money by making a $2 million payment to Platini for backdated salary in 2011. Sepp Blatter speaks during a news conference in July. - Photo: AP “That freeze order … precipitated significant collateral damage, including the collapse of a Cayman Islands financial institution.” District court JuDge WiLLiam PauLey iii CONTINUED FROM PAGE 1 Judge again slams US regulators in Caledonian Bank case Kimpton names new hotel ‘Seafire’ CONTINUED FROM PAGE 1 The 79-year-old suspended FIFA president expects to leave the hospital on Monday.The islands’ most-trusted news source 9 Cayman Compass • Thursday November 12, 2015 First Anniversary in Heaven In Loving Memory of my Mother Joanne Marcia Selzer 30 November 1939 – 12 November 2014 If roses grow in heaven, Lord please pick a bunch for me, Place them in my Mother’s arms And tell her they’re from me. Tell her I love her and miss her, And when she turns to smile, Place a kiss upon her cheek And hold her for awhile. Because remembering her is easy, I do it every day But there’s an ache within my heart That will never go away. Forever in my heart, from daughter Tammi 30 November 1939 – 12 November 2014 If roses grow in heaven, Post-mortem for woman found on smB Brent Fuller bfuller@pinnaclemedialtd.com A post-mortem exam- ination was performed Wednesday on a woman found dead outside a Seven Mile Beach bar and restau- rant over the weekend. Cassandra Hurlston, 38, was found near the Tiki Beach bar and restaurant along West Bay Road over- night Sunday after family members called police late Saturday expressing con- cerns for her welfare. So far, Royal Cayman Islands Police Service officers have declined to discuss the cause of death. They have in- dicated nothing appears sus- picious, but said they would await the post-mortem results before making a determination. Mrs. Hurlston was not re- sponsive when she was lo- cated, and medical personnel were not able to revive her with CPR. She was pro- nounced dead at the Cayman Islands Hospital early Sunday, police said. Initial reports to po- lice indicated Mrs. Hurlston was found slumped over the wheel of a vehicle. Early Sunday, Royal Cayman Islands Police Service officers had cordoned off a wooded area just north of Tiki Beach and appeared to be searching that area as well. Family members indi- cated Mrs. Hurlston had been suffering from depression in recent months and said they did not believe there was anything suspicious re- garding her death. Ten years ago, during the 2005/06 budget, the Immigration Department recorded $33.4 million in revenues collected. This means immigration-re- lated revenues based on fees charged by the government have gone up about 267 per- cent in a decade. Another way of looking at it is the earnings by the Immigration Department last year were enough to cover the entire budget of all Cayman Islands public safety agencies, including police, fire, immigration, the 99 Emergency Centre, hazard management and the prisons service combined. Work permits Records released by the Immigration Department in October indicated that the total number of work per- mits and government con- tracts held by non-Cay- manians in the Cayman Islands had increased by several hundred between July and this month – typi- cally considered the tourism “off season” for Cayman. The government contract workers – about 900 of them – are not charged work permit fees. As of Oct. 15, there were 22,618 active work permits or government contracts in the islands, an increase of about 10 percent since mid-2014. Large work permit fee increases took effect in the beginning of 2010, with fees nearly tripling for some job categories. On average, permit costs increased by $3,000 per employee in most professional categories at that time. Work permit fees were increased again during 2012. Work permits are re- quired for any foreign em- ployee in the Cayman Islands who does not have Caymanian status or who is not married to a Caymanian. Permanent residents who are not Caymanian also must pay a yearly fee to maintain their right to work here. Residency grants Although the work permit business is booming, Cayman’s grants of per- manent residency have dropped to nearly nothing in the past two years. More than 500 non-Cay- manians have applied for permanent resident status in the Cayman Islands since October 2013 under the re- vised Immigration Law, but so far none have been awarded that status. According to records provided recently by the Immigration Department, 11 people who applied after working here more than eight years were refused per- manent resident status when the board determined they were “not eligible.” Those were the only ap- plications to have been con- sidered by the Caymanian Status and Permanent Residency Board as of mid- October, the department stated. A total of 522 people have applied for that status since the Immigration Law was amended in late 2013, making the process for seeking permanent residence much more stringent. Immigration revenues at $89.5M Work permit fees collected by the government during the year – approximately $60.4 million – made up the lion’s share of the earnings by the Immigration Department. CONTINUED FROM PAGE 1 Obama supports altering Civil Rights Act to ban LGBT discrimination The White House endorsed leg- islation Tuesday that would amend the 1964 Civil Rights Act to ban dis- crimination on the basis of sexual orientation or gender identity. White House press secretary Josh Earnest said the Obama ad- ministration had been reviewing the bill “for several weeks.” “Upon that review it is now clear that the administration strongly supports the Equality Act,” he said. “That bill is historic legislation that would advance the cause of equality for millions of Americans. “We look forward to working with Congress to ensure that the legislative process produces a re- sult that balances both the bedrock principles of civil rights. .. with the religious liberty that we hold dear in this country,” Earnest added. Although there is little chance that this Congress will approve the legislation – which was introduced in July by Democratic Sens. Jeff Merkley (Oregon), Tammy Baldwin (Wisconsin) and Cory Booker (New Jersey), and Rep. David N. Cicilline (D-Rhode Island) – President Obama’s support elevates the ques- tion of whether lesbian, gay, bi- sexual and transgender Americans need greater legal safeguards. Last week, Houston voters rejected an or- dinance that would have barred dis- crimination against gay and trans- gender people after opponents said it would allow men disguised as women to enter women’s rest rooms. The White House’s endorsement of the Equality Act came on the same day that Obama became the first sit- ting U.S. president to be featured on the cover of an LGBT publication, after he was named Out magazine’s “Ally of the Year” for 2015. In the wake of the Supreme Court’s decision in June to le- galize same-sex marriage, activists have been pressing for expanded protections based on sexual ori- entation and gender identity be- yond employment discrimination, which had been the focus of past legislation. A bill that would have banned workplace discrimination passed the Senate with bipartisan support in 2013 but did not ad- vance in the House. With Republicans now in control of both chambers of Congress, there is little chance that the Equality Act, which has the support of 37 Democrats and two independents in the Senate and 170 Democrats in the House, will become law before Obama leaves office. Still, the decision by the na- tion’s first African American pres- ident to back the measure is sig- nificant. Some leading civil rights groups – including the NAACP and the Leadership Conference on Civil and Human Rights – have been slow to endorse the legislation. Although those groups support the idea of a broad LGBT anti-dis- crimination bill, they have been skeptical about reopening the land- mark 1964 law for revisions. Wade Henderson, president of the Leadership Conference on Civil and Human Rights, said in an in- terview that the civil rights com- munity has “supported the con- cept of the Equality Act from its very inception.” “It recognizes, however, there are questions that could benefit from further analysis,” he added. “Before it moves forward, there’s hope that those can be addressed.” A majority of Americans, in- cluding Republicans, say in public surveys that they back civil rights safeguards based on sexual orien- tation and gender identity. Over the past six months, for example, the Public Religion Research Institute has found overall support at 68 per- cent or higher. After Earnest’s announcement Tuesday, Human Rights Campaign President Chad Griffin said in a statement that “the White House sent a strong message that it’s time to put the politics of discrimination behind us once and for all.” © 2015, The Washington Post Women hold signs in front of The Supreme Court in June after the decision in favor of same-sex marriage. Now President Obama is backing legislation to ban discrimination on the basis of sexual orientation or gender identity. - Photo: the washington PostNext >