Thursday’s auction of Carbon Estate (see related story) is the latest chapter in this rather unsavoury ongoing drama. No bids were entered, leaving duped clients of Carbon Acquisition Group, also known as Melbon Enterprises, in continued limbo.
The public sale at Notary Boekhoudt’s office in Cole Bay was scheduled on behalf of FirstCaribbean International Bank (FCIB). It regards a residential project of mostly unfinished structures sold as 92 homes, 64 condominiums and 28 town-houses. People’s already-fully-paid units were resold, some got different ones than they bought and others are still waiting for theirs to be built.
As usual, the bank as mortgage holder is the primary beneficiary should the property be auctioned successfully in the future. Even though developer Dwain Carbon’s actions were characterised as a “Ponzi Scheme” by the judge, buyers remain uncertain of ever recovering their investment.
They want him extradited from the US, but a penal investigation by the Prosecutor’s Office and Police Force of St. Maarten KPSM is still in progress. Whether this will lead to charges and a criminal trial is not clear yet.
It’s not the first local case of broken promises and dreams either. The former Mullet Bay Resort and Aquarius at Red Pond come to mind as similar examples of lost rights.
Such practices give not only pre-construction sales but the entire realty sector a bad name. What makes it worse is that they often target non-residents.
The latter can consequently have a negative impact on the tourism economy. If the destination becomes known as a place where legal security is insufficiently guaranteed it may prompt some not to visit even for a regular vacation.
Efforts must be made to close whatever loopholes exist that facilitate such questionable ways of doing business. A few bad apples should not be allowed to spoil the barrel.
