Nineteen 'fronting for property' investigations underway – Housing Minister
Housing Minister David Burch says 19 people are being investigated for alleged "fronting," including high-profile figures.
His comments came as he highlighted the December 31 deadline for land licences to be validated by "restricted persons."
The licences are part of the Immigration and Protection Amendment Act — a law passed in 2007 to prevent the illegal practice of fronting, which is when a non-Bermudian gains an unlawful interest in land by using a local "front".
The legislation gives foreigners up until December 31 to get a $1,375 land licence if they have given financial help to a Bermudian to enable them to acquire property — or face a five-year jail term and/or a fine of up to $1 million.
Those affected include homeowning couples comprised of a Bermudian and an expatriate partner. Such mixed-status couples have been prevented from acquiring more than one property since June 22, 2007. The original deadline was June 22 this year, but it was extended after complaints that the law needed reviewing and clarifying.
During a press conference yesterday, Sen. Burch said: "You will be well aware of the need for such an amendment — the fronting by Bermudians for restricted persons who acquired property in Bermuda unlawfully. I can report that there are currently 19 cases being reviewed by Ministry counsel with a view to likely criminal prosecutions.
"As these cases are likely to be before the courts, what I will say is that they include the names of some very prominent Bermudians both in and out of the legal profession."
He did not elaborate further.
However, he also revealed that since the deadline extension, there has been a "significant increase in the number of applications" for the licenses, and the volume means there is a two-month backlog in processing them.
"I can confirm that we are very close to the launch of the electronic Land Licence Register that will greatly assist in the management of property owned by restricted persons.
"I can also report a marked increase of Bermuda Status applications, several from spouses who have long since met the requirement," he said.
"Concurrently and correspondingly an increase in land licence applications has also been seen since the extension of the deadline. I again encourage anyone who is interested in this topic to contact the Department of Immigration."
