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UBP: Treat all 'fronting' cases the same as the first one

Shadow National Security Minister Michael Dunkley yesterday called for all house buyers caught “fronting” to face the same outcome as the couple who bought Southampton property Laughing Waters.About 20 homes are thought to have been purchased using fronting: when a non-Bermudian uses a local as a front to gain illegal interest in Bermuda land.And Sen Dunkley said he hoped others would be treated the same way as the expatriates who saw their $1.5 million Laughing Waters given to the Bermuda Housing Corporation at no cost.“The UBP has always been on record stating that fronting arrangements are not on,” Sen Dunkley told The Royal Gazette.“We support the Department of Immigration getting to the bottom of this case. But if we are going to make a big deal about it publicly, we need to always make sure the law is being adhered to.“I am sure there are other people who fall into a similar situation. We need to make sure their cases are treated the same way.”Sen Dunkley said the law firm which acted as trustees should also be dealt with by the authorities, although Sen Burch yesterday said it would not be penalised.On Tuesday, Sen Burch announced the BHC had acquired the home as a settlement after finding out the expatriates bought it illegally.Instead of being prosecuted and facing a possible jail sentence, the couple must pay $4,500 rent a month for the next five years; that cash will go towards national housing needs.Sen Burch believes there have been around 20 cases of fronting, and hopes others will now be encouraged to strike similar deals with Government or end up in a legal battle “you cannot possibly win”.He says one case is ready to go to court in the New Year, with two others close.As part of the crackdown, expatriates have until December 31 to get a licence for any property they own or face up to five years in jail or a fine of up to $1 million.Expressing a long-held UBP criticism of that aspect, Sen Dunkley said yesterday: “We still feel many Bermudians are very concerned that because they are married to a non-Bermudian they need to go and apply for a licence.”