Minister denies receiving funds from disgraced US financier

National Security Minister Dr Errol Cort has responded to reports of a civil suit filed against him in connection with money allegedly received from disgraced financier Allen Stanford who is facing multi-billion-dollar fraud-related charges in the United States (US).

In a television broadcast on Monday night, Cort also dismissed calls by the main opposition Antigua Labour Party (ALP) for his dismissal from the Cabinet.

Cort, a former minister of finance, said he has been advised by his US attorneys that, having conducted a search of the relevant Federal court registry in Texas, they have found no claim that has been filed against him, whether personally or in his ministerial capacity.

Civil action

"I am, therefore, to the best of my knowledge, not a named defendant to any contemplated civil action in the United States," he said.

But he said that he was further advised that a civil action was filed in Texas on 15 February, 2011 against the firm of Cort & Associates/Cort & Cort, the law firm in which he was a senior partner up to the time that he became a minister of government.

He said that the action was filed not by the Stanford receiver, but by a group calling itself 'The Official Stanford Investors Committee', to recover fees earned for legal services rendered.

"While I am more than confident that the firm of Cort & Cort, formerly known as Cort & Associates, is very capable of adequately defending any claim that may be pursued against it, the contemplated action is vexatious and devoid of any proper legal foundation," the national security minister said.

On the issue of taxes, the minister said that the Personal Income Tax Act came into effect in April 2005, he has filed all of his Personal Income Tax Returns with the Inland Revenue Department on an annual basis and within the specified time and "has paid the requisite taxes on my income".

Cort told viewers that he had in his possession copies of all his income-tax filings and original receipts from the Inland Revenue Department evidencing all of his payments.

"My tax returns for the period January to December 2010 will be filed on or before 31st March 2011, as required by law," he said.

"Over the period April 2005 to December 2009, I would have personally paid the aggregate sum of $384,460.76 (US$64,076) to the Inland Revenue Department in respect of personal income taxes.

"I have been advised by Cort & Cort that it has made all required tax filings with the Inland Revenue Department on a monthly and annual basis in accordance with the Personal Income Tax Act. Copies of all such tax filings and original receipts evidencing payments to the Inland Revenue Department for the period April 2005 to December 2009 are in the possession of the firm.

Resignation calls

"I have also been advised that any and all payments received by Cort & Cort for legal services rendered to the Stanford Group of Companies have been duly declared to the Inland Revenue Department on a monthly basis and all applicable taxes have been paid thereon," he added

Since news of the lawsuit broke weeks ago, there has been mounting pressure from the ALP for Cort to resign.

Responding to the opposition for the first time, he said that the "attacks to my character and reputation accused me of the most despicable behaviour relating to the non-disclosure of income, non-filing of taxes, tax evasion and avoidance and improper use of my ministerial position."

But on the issue of improper use of his ministerial office, Cort categorically stated that at no time has he ever sought to use his position as a minister of government to channel (whether directly or indirectly) business to the firm of Cort & Cort.

- CMC