Court of Appeal upholds prison sentences in ’Seabass’ fraud  case

PHILIPSBURG, Sint Maarten – The Court of Appeal has sentenced M.D. to  48 months in prison and J.C.L. to 21 months for their involvement in the “Seabass”  investigation, a corruption case that exposed fraud and money laundering within the ICT  Department of Sint Maarten government. 

In the case of M.D. the Court of Appeal confirmed that the country was defrauded of  approximately US$ 4.4 million and NAf 1.1 million over a nine-year period. J.C.L. defrauded the  country of approximately US$ 2.6 million and NAf 50.000 for six years. M.D. and J.C.L., who  served as head and act. head/policy officer of the ICT department, respectively, abused their  positions by providing favorable advice on tenders to companies Effective Business Solutions &  I.T. Consulting EZ and N.V. (“EBS”) and Valmeer Management & Consultancy N.V. (“VMC”),  while secretly holding vested interests in these firms. Their involvement was deliberately  concealed from the government by appointing family members as managing directors. 

In addition to fraud, M.D. and J.C.L. were convicted of money laundering. The investigation  revealed that funds received from the government, following the awarding of contracts to EBS  and VMC, were transferred to American shell companies and subsequently funneled into their  personal accounts. These funds were then used to finance private expenditures and luxurious  lifestyles.  

The Prosecutor’s Office OM SXM highlighted the severity of the crimes, citing the extended  nine-year period of fraudulent activity, the significant financial losses incurred, and the  defendants’ betrayal of public trust as civil servants as aggravating factors.

The Court of Appeal considers it a serious offense that M.D. and J.C.L. abused the responsibility  and trust entrusted to them as civil servants in this manner. The Court of Appeal emphasizes  that higher standards of conduct are expected of individuals working in government and  specifically underscores the requirement of integrity. The defendants’ failure to recognize the  wrongdoing of their actions and their lack of understanding of the consequences have counted  against them in deciding the length of their prison sentences. 

This ruling represents another important step in tackling public corruption and restoring trust  in Sint Maarten’s governance.