A US court has ruled that the Corporation of Hamilton is on the hook for the improper release of $13.7 million intended to kick-start a hotel project, which ultimately failed.
The legal action related to a July 2014 loan to Par-la Ville Hotel and Residences, which was intended to jump-start financing to build a hotel on the site of the Par-la-Ville parking lot.
A total of $12.5 million of the money borrowed by PLV was transferred to Argyle, a Gibraltar-based investment firm. The funds were never invested on PLV’s behalf and the PLV quickly defaulted on the loan.
A judge at the High Court in London ruled in July 2017 that Robert McKellar, the director of Argyle, had engaged in “unjust enrichment” and had spent the money.
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