Land Wars Continue on Rum Cay

by Larry Smith

A pivotal ruling has been made in one of two injunctions filed by prominent Bahamians over the past year in an effort to stop foreign speculators from carving up and selling thousands of acres of disputed land on the 45-square-mile island of Rum Cay.

The land wars have fueled a controversy that involves powerful Nassau lawyers (on both sides of the political fence), the few dozen poor and formerly enslaved inhabitants of Rum Cay, wealthy second home owners, and a bevy of foreign and local fortune seekers.

A March 26 ruling by Supreme Court Justice Jeanne Thompson extends one of the injunctions and awards costs to attorney Craig Butler, a grandson of the late governor-general Sir Milo Butler, who is representing the family's claim to more than a thousand acres in the west of Rum Cay.

The ruling also appears to validate the Butler claim, making it more difficult for other claimants. Rum Cay has been at the centre of a maze of competing land claims in recent years, with several developments underway - some spurious, some real.

The American defendants in the Butler injunction (Island Acquisitions and Miami lawyer Jorge Diaz-Cueto) were represented by former attorney-general Carl Bethel. They have already lodged an appeal against Justice Thompson's ruling.

Island Acquisitions was incorporated in Nassau in 2001 by the law firm of Philip Davis, who represents Rum Cay in parliament. Also cited as defendants by the Butler injunction are Raymond and Merrill MacDonald, who were "friends and companions" of the late Effie Knowles, a Florida attorney of Bahamian descent who claimed an estate of some 12,000 acres in the Bahamas - including big chunks of Rum Cay - at the time of her 1984 death in Miami.

Merrill MacDonald, who died in January at the age of 79, was a retired Miami cab driver who became Effie Knowles' caretaker and - according to Florida court records - managed to whittle away her life savings before she died. Raymond MacDonald, now 53, is Merrill's son. He was convicted of insurance fraud, grand theft and forgery in 1984.

Effie bequeathed all her assets to the MacDonalds, including her Bahamian land claims. And a few years after her death the MacDonalds sold all of these lands to a Bahamian company called Newport Harbour - which is also represented by Carl Bethel - for $180,000.

Later, they began reselling the lands to other buyers. In 2002 the MacDonalds resold 2000 acres in the southwest of Rum Cay to Island Acquisitions for $128,000, and another 80 acres in the southeast of the island to Rum Cay Ventures for $40,000. After feuding for years, the three companies have since divided the spoils and are working together to prove title from the Effie Knowles estate.

For example, both Rum Cay Ventures and Island Acquisitions base their claim to the Rum Cay land on title reports produced by the Nassau law firm of Vincent Peet, which start from the will of Effie Knowles. Mr Peet is a former Cabinet minister in charge of investment projects.

The plaintiff in this dispute is Raleigh Butler Sr, owner of Butler's Funeral Home and eldest son of Sir Milo Butler. He traces his claim all the way back to a 1790 Crown grant to one Thomas Fraser. The land was conveyed in 1882 to James Culmer and (an earlier) Milo Butler as tenants in common, and there has been no subsequent conveyance away of the land. The plaintiff is the great, great grandson of the original Milo Butler.

The Butlers filed for an injunction in January 2006 to restrain Island Acquisitions from "selling, advertising, subdividing, trespassing, interfering, excavating and/or dealing with" the Rum Cay land - which is near the family's original home in Blackrock - pending a title quieting by the Supreme Court.

Island Acquisitions sought to have the injunction dismissed, but the March 26 ruling by Justice Thompson denies this. Her ruling also states that documents produced by the plaintiff "on their face show a clear line of title from the conveyance to the first Butler and Culmer to the plaintiff and other members of the Butler family.

Justice Thompson also noted that the defendants "have not produced any evidence of having obtained subdivision approval to do the works on which they are allegedly embarked and there is evidence produced by the plaintiff that such approval has not been granted...I note that several lots have been sold, and, if (Island Acquisitions) should not succeed (in the quieting action), these sales and subsequent sales, should the injunction be lifted, could result in much negative publicity for the Bahamas."

Justice Thompson issued another injunction last November to stop the sale and/or subdividing of a 67.5- acre piece of vacant land known as Murray's Camp, and another 15.5-acre tract - both to the east of Port Nelson on Rum Cay.

Richard Lightbourn of McKinney, Bancroft & Hughes had filed for the injunction on behalf of a Bahamian company called Tara Ltd. His application was based on Certificates of Title obtained from the Supreme Court in 1988, through descent from one Mary Dorsett. Tara is owned by the MacTaggert family of Nassau.

The judge's order prohibits the defendants from trespassing on the land, or holding themselves out as having an interest in the property. Among those restrained by this injunction are Mike Fothergill, Rum Cay Ventures, Billy Wayne Davis, Newport Harbour, Bobby Little and Bob Pope.

Little is a former owner of the Sumner Point Marina on Rum Cay. Pope owns a company that wants to supply electricity through the contested property to land that Fothergill has sold. Fothergill is a convicted money launderer who is still on probation in the US. He is associated with Rum Cay Ventures. Davis is a disgraced Arizona politician and bankrupt who was convicted and imprisoned for bank fraud during the 1990s. He is associated with Newport Harbour.

Rum Cay Ventures filed a counterclaim seeking to have Tara's 1988 Certificates of Title set aside, on the ground of fraud. A ruling on this dispute is still pending, with a hearing set for early June. The substantive issue of title in both matters (and others that are related) is expected to occupy court time and fill the pockets of attorneys for years to come.

Frankly, it is difficult to understand how any government can allow convicted felons to enter the Bahamas and do business with such impunity, particularly when the business is the sale of disputed Bahamian land to unsuspecting foreign buyers, which - as Justice Thompson says - can only damage the country's reputation.

According to lawyer Craig Butler, the speculators are engaged in a process called flipping: “They are trying to claim title by selling lots as rapidly as possible, but the basis from which they all start is simply wrong.”

And that basis is Effie Knowles, whose grandfather – James Alexander Knowles - was born on Long Island in 1839 and moved to Key West. Her mother - Julia Dorsett - was born in Nassau and also moved to Key West, but her father was Joseph Lake Dorsett - who was a prominent landowner on Rum Cay.

Effie began tracing her estate in the early 1960s. Her starting point was the will of an uncle – Percival Dorsett - who was supposedly the last white Bahamian on Rum Cay when he died in 1940. The lawyers who worked on Effie’s project in the early years included Carey Leonard, William McPherson Christie, Jerome Pyfrom, William Holowesko, Useph Baker and Dawson Roberts.

In a 1962 letter to one of her relatives Effie wrote about the project: “I have made five trips to Nassau...We are getting ready to clear the title to 1400 acres of land inherited from the Dorsetts on Rum Cay, also lands inherited from my father’s family.”

In another letter she discussed the value of Rum Cay property: “The salt pans were built at great cost and lined with solid flint rock, and even though now in bad repair even a small acreage is worth money. My great grandfather built them at a cost of $1000 an acre and developed some 200 of the 900 acres...He also had a cattle ranch on some 1400 acres.

But many experts are sceptical of Effie’s complex title chain, pointing out that she was an American citizen and that lots of things could have happened over the years to affect her claims – such as non-payment of taxes. It is this uncertainty that has fueled the conflicting claims of speculators on Rum Cay.

In the meantime, foreigners looking for their "piece of paradise" have plonked down millions of dollars to buy land with dubious title, and often with no Bahamian government permit or certificate of registration. According to local realtors, such deeds are worthless.

The last major title quieting legislation in the Bahamas was passed 47 years ago and although there has been talk of a new land law to provide for absolute title, nothing has been done to achieve this by any government.

For more background on Rum Cay click here. For more on Effie Knowles click here.

Comments

[Tim]

It seems as Larry Smith really has something against Mike Fothergill. Is it because Mr. Fothergill has plenty evidence to back up his claims? It will be interesting to see how things are ruled in June. As far as allowing convicted felons to enter the Bahamas and do buisness. Are you kidding me? I think if you looked closer at some residents and people conducting buisness in the Bahamas you will see much worse then Mr. Fothergill.

[Steve]

Does anyone have an update on this story?

I'm curious to know whats happening with the injunction brought upon Bella Mar Estates (Jorge Diaz Cueto).

When will the appeal happen?

[Richard]

Is the Butler claim limited to the original homesite at Blackrock? Do they claim all the property of the Thomas Frazer tract?

[FVH]

Does anybody know what happened or rather what is the story about the Miami cab driver? He inherited and made fraud?????????

[Elaine]

Where are they with the injunctions? Is this over? Need update

[Tim]

What are the injunctions?

[madmax]

this is 2008 and there will be more injunctions if people who are illegally selling bahamian property on the internet with fraudlent convayances dont stop.

[bahamascams.blogspot.com]

Bahamas Land Fraud have your say do you have any information on any fraud or people who are selling land with no clear title

[me]

hey, raymond are you scared now. can't tell people that it's you. getting info from people. hey, i know all about the land deals that you are doing.

[me]

well i guess you couldn't say anything now. I see all paper work. never turn your back on raymond. he will never change. if you meet him run for the hills.

[larry smith]

In 2006 the Bahamas Supreme Court issued an injunction against Michael Fothergill, Billy Wayne Davis, Rum Cay Ventures, Newport Harbour and others.

The injunction restrained these defendants from selling and/or subdividing a 67.5- acre piece of vacant land known as Murray's Camp, and another 15.5-acre tract to the west of the salt pond - both to the east of Port Nelson on RumCay.

Richard Lightbourn of McKinney, Bancroft & Hughes had filed for the injunction on behalf of a Bahamian company called Tara Ltd, whose predecessors in title obtained Certificates of Title from the Supreme Court in 1988, through descent from one Mary Dorsett.

Tara is owned by Andrew MacTaggart of Nassau.

As noted above, Rum Cay Ventures, together with John and maria Demming, then filed a counter suit seeking to have Tara's ownership claim set aside, on the ground of fraud. A ruling on this dispute was issued late last year by Supreme Court Justice Anita Allen.

That ruling struck out the counterclaim, restrained Rum Cay Ventures and others from trespassing on the properties in question, and awarded costs to Tara Ltd.

The court further declared that:

1. The June 18, 2002 conveyance from Merrill and Raymond McDonald to Rum Cay Ventures is null and void to the extent that they purport to convey an interest in the above-mentioned properties.

2. The May 28, 1987 conveyance from Merrill and Raymond McDonald to Newport Harbour is null and void to the extent that they purport to convey an interest
in the above-mentioned properties.

3. The October 29, 1996 conveyance from Douglas Kinney, Donald Scott and Don Major to Newport Harbour is null and void to the extent that they purport to convey an interest in the above-mentioned properties.

4. The July 5 2002 conveyance from Rum Cay Ventures to John and Maria Demming is null and void.

5. Interlocutory judgment for damages for trespass be entered against Fothergill, Rum Cay Ventures and Bob Pope.

The order has a penal notice attached to it, so failure to comply constitutes a contempt of court.

This should send a signal as regards the other properties in contention on Rum Cay, since these conveyances are at the heart of all the land disputes on the island. The McDonald's claim to the land was based on a bequest in the will of Effie Knowles.

But people are inclined to believe what they want, and where they have paid hard-earned money for a property they want to believe that their title is good.

[billy]

www.billywaynedavis.net

[me]

do you guys really think there is a good title on any of these lands. i know that he sold the lands a couple of times and you guys who looking this up know it too. get smart and keep your money out of reach of raymond macdonald. all he wants to do with it is not good things. look at all the dumb people waiting for there money from him. haha. you won't get it. he never pays anyone back. if someone can tell me if they got money back from him tell me. he still lives in hollywood florida and taking money from anyone who well give it to him for bad land deals.
and if raymond reading this. bite me!!!! haha they well get you soon.

[billy davis]

check out the new web site ,read and follow instructions

[billy]

www.billywaynedavis.net

[James]

Where exactly is Murrys Camp?

[Reggie]

What is the status of the Rum Cay Marina Resort development (Montana Holding)? Wasn't the marina supposed to be open by now?

[Ocean View]

What is the latest on the Rum Cay Land Development?

Any updated on Island Acquisitions Ltd?

I find it rather strange that no one was interested in this land or any development until Island Acquisition, Billy Davis and Montana Holdings came up with a plan for it.

[Child's Play]

It is obvious most people do not understand the Butler's (Raleigh Butler's) Claims. The Butlers' descendants are not only Butlers by surname now but Robinsons, Strachans, Dorsetts, etc. Milo Butler's house is not the only house on the Black Rock property.

In response to Steve, it would appear the Butlers claim to own all of Fraizer Track up to where it crosses into the property North East of Black Rock. More than 1000 acres is in the Butler's claim.

[Kristy]

Does anyone know the status of the property claimed by Island Acquisitions? Where does someone stand if they purchased property in "Bella Mar Estates"?

[Richard]

In regards to the Butler claim. Is there some valid reason you waited for two years and more before laying claim to the Island Aquisitions land? Everyone on Rum Cay knew flights were coming from the mainland with subdivision brochures printed. Bella Mar never acted without full disclosure. Where the hell were you people while all this was going on?
Now after the fact out of the woodwork you come. Are you claiming ignorance or was it just your claim has very little merit
to start with and you are extorting through the court system.

[Enforcer]

If you bought land from "Bella Mar Estates" on Rum Cay, you are screwed, unless you can hunt down Jorge Diaz-Cueto or Steven (Stephen) Balzner. They sold land on Rum Cay (Bella Mar Estates) without clear title to several people. They used a company called Island Acquisitions registered in Nassau. Bobby Little helped out by taking the prospects over in a broken-down boat and drop them off on the beach and walk through the so-called property.

[Enforcer]

For information on Bella Mar Estates, Call the Following:

JORGE DIAZ-CUETO
STEVEN J BALZER
DAVID FETZNER
H. BENJAMIN SANDS (HARRY)

[Richard]

Big claim you lay out here enforcer, do you have a court action to back up the statement or do you just blow smoke up your butt?

[Cynthia]

My ex husband and I bought property on the Island of Rum Cay in August 29, 2002 in the name of James G Papagno - Lot #20 of a 80 acre tract with Rum Cay Ventures. I am trying to find information if this was sold or any title or deed information since this property is 50% of my ownership.

Could any one help direct me to get this information?