Former owners of Margaritaville sued by liquidators
(CNS): Liquidators handling the collapse of the companies behind the Margaritaville Resort on the West Bay Road have sued the former directors in the latest chapter of a five-year saga of financial and legal turmoil. Hugh Hart and Jonathan Murphy, both Cayman residents, and Howard Sitzer from Israel are being sued for fraud as local liquidators attempt to recover money for those who bought units at the resort but never received the agreed rent for them.
Russel Homer and Karen Scott of Chris Johnson and Associates are seeking compensation from the three directors of MVCayman and MVAdvisory, which traded as HHG Cayman Ltd, when it ran the Jimmy Buffett-themed beach resort on the more than five-acre site of the Old Treasure Island hotel.
Margaritaville got into trouble just a few years after opening. Then, local IT millionaire Jerry Beck successfully sued the owners and brought the companies down when the US$2 million debt owed to him was not paid.
This latest lawsuit is seeking to obtain money directly from the three men who were all directors of MVC. The liquidators claim that they breached their fiduciary duties and allege they engaged in financial wrongdoing, including deceptive arrangements and failing to keep proper accounts. Homer and Scott claim the directors misapplied and mishandled corporate funds, traded when they were insolvent and deliberately defrauded their creditors, among other alleged illegal dealings.
As a result, the liquidators are asking the courts to find that the directors breached their statutory as well as fiduciary duties and contribute to the liquidation by paying damages or compensation as the court sees fit.
Meanwhile, the resort building, which remains in a state of neglect and disrepair, was sold in December for $8.6 million under a court order as part of the liquidation process. It was bought by a mystery developer under the name of ‘269 West Bay Road Limited’, the address of the site.
Since then, a planning application has been submitted for the development of a ten-storey, four-star hotel by Trio Architects, which will see the existing buildings demolished. The new resort will be managed under the Hyatt Centric brand. According to a new website, the anonymous developers are already soliciting pre-development sales, even though the application has not yet gone before the Central Planning Authority.
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid
Category: Local News
Maybe they can do one last blowout at Top of the Falls!!
I could use a Blue Lagoon from Silvers
There goes 4-5 years of space at Mt Trashmore when they tear this down.
Well done CNS. I do find it odd that this matter seems to have escaped the attention of both the Compass and Cayman Marl Road. I guess they have no decent reporters whilst you are always on the ball.
Is “269 West Bay Road Limited” cryptic linguistics? Or, perhaps, I am overthinking. I will not spell it out.
I will be so happy to see that eyesore finally demolished.
Careful what you wish for. It’s all but guaranteed that whatever replaces it will be huge and even less out-of-touch with what people actually come to Cayman for.
?…cayman has record tourist numbers right now…what you talking about?
Perfect for the ‘Mericans’ that visit & want to stay somewhere that looks like home, feels like home & has virtually zero Caribbean charisma. Burger king & Pizza Hut just down the road.
Cayman is not known for Caribbean charisma.
How can they be planning to demolish this piece of Cayman heritage and culture? Where is the uproar from the National Trust?
Referendum!
This place is a dump it’s full of mold. I was surprised when they bought it. XXXX
I wonder how long all that mold will linger in the area once they demo it and will it go straight to the dump to infect that area and workers too?
Section 6(1) of the Development and Planning Act requires planning permission for any form of development. Breach of the Development and Planning Act are potentially subject to enforcement actions including stop notices, penalties, and refusal of future applications. In practice this means that any representations made by Developers and Real Estate Agents prior to CPA approval is construed as advancing a development that has not yet been legally sanctioned. The risk for the buyer is that CPA may require significant alteration or even deny the project.
In the Cayman Islands, the legal and regulatory position on the preconstruction sale or marketing of units before planning permission is granted is similar in spirit to that of the United Kingdom—it is strongly discouraged and can be legally risky, though not outright banned by a specific statute. The difference is that UK has Consumer Protection and the Advertising Standards Authority that protect buyers. Elected Officials in Cayman (other than MP Saunders) don’t appear to see the urgency to pass Consumer Protection laws
The Mac credit Govt. credit card defense…
“There’s no law against it”.
Consumer protection legislation needed, until that time, the illegality doctrine post-Patel v Mirza and unconstitutionality shall have to suffice.
Wait, another 10-story hotel? Wonder what the NRA comment will be regarding the impact on the road infrastructure…..most likely as usual – ‘development will have minimum impact on traffic’!!
Developments such as this one and the one on Pageant Beach should have to pay the costs to improve the road infrastructure to accommodate the increase traffic generated. But instead, as in the case of the Pageant Beach Hyatt, the developer is granted duty waivers. Btw, UPM continued the duty waivers for the Hyatt development on Pageant Beach last year.
The developers will all cry prejudice if they aren’t given at least some concessions compared to the god knows how long duty waivers that Dart secured back with Mac and PPM – which they use for EVERY little thing – even restaurant renovations. They boast about it to anyone in their project meetings so don’t bother denying Dartbots!
Only god and anyone with internet access and half a brain knows.
Maybe even check the CNS library if you are able to read.
Should these or any other developers commit to the same level of infrastructure improvements, perhaps they should be considered for comparable duty waivers.
There should also be HUGE FEES for the removal of the demolished materials. Think how that going to affect the dump capacity!
WAIVERS CONTINUED HUH, was this influenced by the PPM????
How is Murphy still a member of CIREBA? This should be unlawful!
I bet this time you won’t get any response from the usual real estate leeches that swarm CNS comment’s section whenever people call them out, talking about how they all have to uphold Cireba’s strict policies and standards. 😂
He’ll be selling the multi unit residential apartments he’s developing in West Bay.
murphys law…
How is a convicted crack dealer still a member of Parliament?
Why are his illegal billboards still on display.
That is a travesty and a stain. But since your going there, and speaking of crack. Canada had Rob Ford (Ex mayor of Toronto), USA has Donald trump (the stormy Daniels scandal alone), UK had Matt Hancock who breached his own government social distancing restrictions many times during the pandemic while enforcing them for public. And was caught kissing an advisor in his Whitehall office on CCTV. Both were married to other people at the time. Just to name a few…..
Nothing to do with the subject. Do you need therapy?
Voters like his products… And will vote for him – Cayman intelligence.
As per usual, outsiders trying to keep progress down. SHMDH
There is ‘progress’ and there is stupidity.
Don’t all developers here do pre-approval pre-sales? That’s freedom of contract. This is not anything new or unusual.. as much as CNS wants all development to be “evil”.
No, hope this helps.
For the love of all things sane, please don’t approve this utter monstrosity. Its massive and will simply overwhelm the neighbors and infrastructure. there’s no doubt its the same group as the grotesque hyatt that has been plonked on pageant beach, and these folk simply do not care about the congestion soon come. This is madness.
Although, top floors will have magnificent views of Mt Trashmore, i’m sure i saw that in the cireba cartel marketing
Sadly, the Planning board has no authority to refuse an application because people don’t like it or want it.
Agreed. The Planning Regs have been systematically updated over the past 20 years to be only pro development. There’s really nothing legal the Board can do. The last time they tried – with Bluecap just north of Kimpton – the developers simply appealed the refusal and the Planning Appeals Tribunal overturned the refusal. Wake up and stop blaming the Board! You could change out all members to tree huggers and they’d still be forced to follow the law.
Also, say goodbye to the sun on the East side of this huge complex, not to mention the lovely breeze that comes from the East.
Tear it done and build a 4 storey complex, no need for another hotel.
Anyone checking for mold in the current bldg? Making poor tenants sick could be another side line for this troubled building…but the residents dont deserve serious health problems.
…which will see the existing buildings demolished.’
Whatever happens to these buildings and this site, it is beyond time for the buildings to be torn down. The previous attempt at “redevelopment” was a complete failure, partly because the structures have seen their day.
Those structures never had a day.
It’s really simple… Buyer beware!
Buyer stay far far away.
How can they be selling units already when, “the anonymous developers are already soliciting pre-development sales, even though the application has not yet gone before the Central Planning Authority.”
This sounds like Planning has already been bought and paid for. When will this type of non-sense stop in the Cayman Islands? When will people be investigated and jailed for all this aparent collusion and corruption?
This place never seemed to be dealt with properly. I heard about plant nurseries pulling up their plants because they didn’t get paid. I hear staff wasn’t paid properly or unfairly dismissed.
Such a drama. Also, I hope that the CPA and in general banks are looking at these failed businesses when approving loans etc.
it doesn’t take a genius to work out the developer is the same as the other hyatt being built
It isn’t.
look under the hood amigo
Look behind you fam.
Does anyone remember what the previous names of the resort were before Treasure Island? The original interation stood uncompleted for years and looked like an abandon prison. (possibly Paradise something?). That was followed by the Country Western themed resort and the Silvers Nightclub. My memory isn’t what it used to be.. and probably never was.
Paradise Manor built by Bill Becker. It was placed into receivership by Scotiabank at the same time as Cayman Reef just up the road. The Receiver of both projects was none other than Chris Johnson at Coopers and Lybrand who sold Paradise Manor to the folks from Tennessee.
I guess by now Chris knows a bit about the property and maybe had he been the Receiver this time round he might have got more than $8.5m
Paradise Manor
https://www.caymancompass.com/2025/06/17/pre-construction-sales-start-for-10-storey-hyatt-centric-hotel/
Original developer was a man named Becker. He and another one named Cook washed up with Rolls Royces and paraded about like saviours. The usual developer flotsam that Cayman attracts to this day.
Treasure Island was a dump from the time the modules were poured and lifted in place.
What is truly amazing is that the massive coastal groynes were allowed. And have been left in place. Major CIG failure that.
Do you remember when it was built? I am trying to locate the information but can’t seems to find it. Also, wasn’t Ramada there at one point and appeared not to have lasted dog watch?
Marriott opened as Ramada.
It was the Radisson where Marriott is today.
Paradise Manor built by Bill Becker from Hawaii.
Money people and mystery developers already pre-selling BEFORE they get CPA approval. Think they know something that the rest of us do not know?
It should be illegal to sell something where no development permit exists.
Hope there are lawyers to protect buyers from the silver tongued realtors pushing these sales.
100% the buyers should be asking for disclosures that the approvals have been met before buying.
It’s buyer beware, but I’m sure the realtors will tell them that 🙂
Why do they not tell us who is the new purchaser. Perhaps he should talk to Chris Johnson before he starts.
You can sell something that will exist in the future, no problem. If it ends up not existing, well then you have to refund what you were paid. Pretty simple.
Ask the buyers at the Orchard Ecovillage how well that premise works.
Still waiting to have my deposit refunded by Jan Grupa. Five years later.
$8.6 million is a steal😮👍🏾.
The land was the only thing of value.
Yep
Yes, but with original easements they have complete beach access without having to pay for it. Cross easements with Grandview and Sunset Cove are all intertwined. Parking will be a mess. The Sunset Cove and Grandview beach access now may have to accomodate 650+ more folks.
Love to see it😊.
Yes, love to see rich developers fighting.
Grabs popcorn.
realtors involved in this sorry mess have a lot to answer for too…
LOL yeah we’ll see how all those Cireba “strict standards” are upheld now.
Same location. Same Realtor. New developer. Never been a better time to buy. Or sell? Same fat commission for doing SWF.
CIREBA and standards do not belong in the same sentence
Fun Fact – Remax sold the Margaritaville units, guess who is selling these Hyatt units.
Never been a better time to rip off unsuspecting customers.
And Murphy is now a CIREBA broker …. Should we ask CiReba for comment?
And a developer of homes in West Bay…!
Let me guess…. Remax!
Realtors involved in Orchard EcoVillage should also be responsible.
Litigation is likely next for the partially completed Kailani Cayman resort (waterfront next to Kirk Supermarket)? The cranes were taken down last year and there has been no activity since.
Presumably the developers ran out of money. Could sit as a 5-story derelict eyesore for a long time.
isn’t the only abandoned NCB project…
Or the only one in litigation.
You think they worried? Home boy living his best life at Royal Ascot this week.
interesting seeing who’s partying with home boy isn’t it? explains a lot
Well connected sons of the soil can do no wrong it seems.
Shameless and entitled .
Must be the stupid glasses.
😂 One side circular and the other side square. Stupid glasses is a perfectly fitting term. 😂
Who, tell us all!
Who
oh, i get it!
Took hew long enough
Get there in the end LOL
Surprised they still have some of our money left.
I know just the guy to act as Receiver.
NCB seems to be in a lot of distress on their jobs at the moment. Apparently, Dart kicked them out of the second phase of Olea.
One thing guaranteed about DART is getting kicked out.
Especially when they find someone cheaper to do the work! They like those new companies who they can manipulate.
don’t worry….NCB are on it!
zzzzzzzzzzzzzzzzzzzzz
This developer isn’t exactly known for high quality. Those people who bought into the South Sound white tower block are scraping rust off daily.
On a level with Davenport.
or ProPlus
…or Phoenix Construction, excellent job in GT road and excellent abusive worker.
But they give good cheap prices!!!!!!
No, They give expensive prices and then just hire the same smaller contractors that also bid the job for less money and keep the profit.
Getting some Ospho for the rust streaks. Good to go….
The building built close to Dixie graveyard? I remember a number of Caymanian families being very upset about this as the wall was built very close to their family member’s graves. Such a shame this was allowed. Everything is for sale. Now look at it??!!
I doubt the residents themselves are particularly concerned.
Just the family members…….
Some of the family members Wight are the construction company. Yes, also former MP.
Which former MP.
Thought to NCB was Naul and Matthew. Are there more people that are part of this boutique hotel development deal?
Thought this was an exclusive NCB project. Is it not?
Planning and Government at the time are also very much at fault for what has been allowed to happen next to and so close the some of the graveyards in Cayman. This same thing happened in South Sound. No respect for the forefathers of this country. Anything for a dollar now look at this eye sore…….. Shame on all that are involved. New laws need to be put in place hopefully with this new government.
Unless the culture of “need for fees” by CIG is ignored, the developers can presell. CPA will approve.
Surprise us CPA, reject it! At least defer until infrastructure catches up. Grand Hyatt almost finished and Lacoiva in the pipeline.. Speaking of pipeline, where is all the waste going?
In to the failing Water Authority doo doo tanks. Another lawsuit in the making.
The CPS chairman will never reject any large project.
The CPA cannot control CIG putting millions of Infrastructure Fee Funds into General Revenue only to be spent on everything except Infrastructure. And it’s been happening for decades.
My goodness, a former rich bigwig in the Jamaican Labour Party of long ago getting himself in trouble at a very advanced age.
With a little help from his ex son in law.
And Mr. Howard who used to be referred to as a Canadian businessman, now he is from Israel.
Such a deal..
Irony that Mr Hart came to Cayman to help his Client who had been ripped off by an English project manager on a 7 Mile beach condo development.
The project manager got lucky with a friendly English judge who only found him guilty of “deception”… having escaped jail, he’s still here living in high society and continues to deceive.
Scoundrels
How is it possible that we don’t know who the developer is behind this project? How can you pre-sell units of something that has no planning permission?
So why is CIREBA not doing their due diligence? Mr. Premier..why is a mystery company being allowed to buy land here? When it goes to be registered, they should have to say who the company belongs to.and whichever realtor sold the property should have their license revoked.
Simple, just know the right people and anything is possible, don’t forget that this is Cayman, the best island money can buy!
WTAF ANOTHER 10 storey monstrosity no doubt.
I agree it needs to be torn down, but 10 another 10 storey hotel isn’t needed.
Come on planning, do the right thing and reject this application!
It will be approved. At least it isn’t directly on the beach.
This is only one of many that will be built up and down 7 mile in the next ten years.
This is now the norm. The only thing that mat change is they get taller!!