Atlantic Bank Sues Mike Feinstein and Stake Bank Enterprises

The Atlantic Bank Limited, businessman Michael Feinstein, and Stake Bank Enterprises which is presently in receivership, are headed to litigation.  On Friday, a claim was brought before the High Court against Feinstein, who is a director and shareholder of Stake Bank Enterprise Limited.  In the lawsuit, Atlantic Bank claims that it has provided Stake Bank Enterprise with sixty-two million dollars to develop Stake Bank Island into a cruise ship docking facility.  Part of the project required that roughly twenty-three and a half acres of seabed had to be reclaimed around the existing land mass.  In 2018, Atlantic Bank proceeded to make funding available for the project on the strength that Stake Bank Enterprise would ensure that the title to the reclaimed acreage would be acquired from the Government of Belize in Stake Bank’s name.  Furthermore, the claimant states that in 2021, Feinstein illegally applied for and received title to the extension in his name rather than in Stake Bank’s name.  A mortgage debenture carried out in January 2022, clearly stated that the original sixteen acres of the island, as well as all future leasehold and freehold property, including all buildings and fixtures, are the property of Stake Bank Enterprise Limited.  A few weeks ago, Atlantic Bank learned that Feinstein had possession of the title to the extension in his name.  He was then required to convey the title for the extension to Stake Bank Enterprise so that it falls within the charge created by the mortgage debenture.  Atlantic Bank asserts that Feinstein has refused to do so.  As such, it is seeking a declaration that Feinstein holds the extension to Stake Bank Island, as a constructive trustee for Stake Bank Island and subject to an equitable charge in favor of Feinstein.  ABL is also seeking an order directing Feinstein to immediately transfer the extension to Stake Bank Island to Stake Bank Enterprise free and clear of any hindrance or charge.  Among other reliefs, Atlantic Bank is also seeking damages against Feinstein for fraud and breach of fiduciary duties.  Atlantic Bank Limited is being represented by the law firm of CourtenayCoye LLP.