Trusts

In Citco Trustees (BVI) Limited, the trustee delegated investment management to a professional manager who disregarded guidelines and engaged in speculative trading, leading to significant losses for the trust fund. This case highlights breaches of fiduciary duty and negligence by trustees.

In JSC MCC Eurochem v. Livingston Properties Equities Inc., BVI companies were implicated in receiving secret commissions from former executives of a corporation. The court treated the recipients as constructive trustees, holding them accountable for misappropriated assets.

Fraudulent misrepresentation claims arise when false statements are made knowingly or recklessly to induce reliance, causing financial loss. For example, BVI courts have addressed cases involving deliberately misleading statements to attract investments, allowing victims to seek damages or rescind contracts.

Some BVI trusts have been exposed as sham structures designed to hide assets or perpetrate fraud. These cases often involve proceedings across multiple jurisdictions, including the BVI, and aim to recover concealed assets.