The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Jamie Dingman has blamed the collapse of his Nassau restaurant empire on “rampant theft and mismanagement”, and plans to call a former FNM Cabinet minister as a defence witness in his battle against a $1.113 million damages claim.

Legal papers filed in the federal New York courts yesterday, and obtained by Tribune Business, show that the son of world-famous entrepreneur and Lyford Cay resident, Michael, plans to call Tommy Turnquest as a potential witness in his defence.

Mr Dingman’s proposed ‘witness list’ includes a ‘Who’s Who’ of Nassau society and its business community, including Atlantis PR chief, Ed Fields, and Downtown Nassau Partnership (DNP) co-chair, Charles Klonaris.

Also named as possible witnesses for Mr Dingman’s defence to allegations from Bahamian corporate and individual creditors, who are seeking to recover sums owed by his collapsed restaurant ventures, are former Bahamas Chamber of Commerce executive director, Philip Simon, and public relations executive, Diane Phillips.

None of the persons cited by Mr Dingman has done anything wrong, and they are not named as defendants in the lawsuit against him. They instead had roles in setting up his five-restaurant business, were employed by it, or were touched in some way by the services they provided to it.

Mr Dingman, in an affidavit filed yesterday, said Mr Turnquest, the former minister of national security, was hired to obtain all the necessary approvals for the restaurants, which included the iconic Traveller’s Rest property on West Bay Street.

The former Cabinet Minister was also working with Christopher Wells, the Graham, Thompson & Company attorney, to gain the necessary permission for Mr Dingman’s parent company, Out West Hospitality, to issue equity stock to two Americans who have are now among his main accusers.

“In order to deal with issues concerning the issuance of stock, Mr Wells, Mr Giunta and Mr Gordon were working with a former Bahamian MP and minister of national security, O. Tommy Turnquest, to help obtain any necessary approvals from the appropriate authorities,” Mr Dingman alleged. “I do not know what the status of those efforts were at the time the restaurants closed.”

He further said of Mr Turnquest’s role: “After leaving public office, he consulted with the venture and assisted in attempting to obtain the necessary permitting for Bahamian operations, as well as any necessary government approvals for the issuance of shares in the Bahamian companies.”

The issuance of those shares to the two non-Bahamians, Messrs Giunta and Gordon, has become a central issue in the $1.113 million claim against Mr Dingman, with the two alleging that they were fraudulently induced to invest in his business. There is nothing to suggest Mr Turnquest, though, has done anything wrong.

Elsewhere, Mr Dingman alleged that he “tried to hire” Mr Simon to run his restaurant and hospitality group. The former Chamber executive director, now head of New Providence Development Company, preferred to take up a consulting role, however.

This involved “assisting in setting up the restaurants and acting as an all-around taskmaster for the operations of the companies.

“As such, he can provide testimony as to the day-to-day operations of the group, as well as the long-term vision and plan, as well as where the failures occurred,” Mr Dingman said of Mr Simon.

He added that Mr Fields was “an early investor” in Out West Hospitality and its restaurants, and would be able to give testimony on the initial capital raising and launch, along with several other names he cited.

Mr Dingman also alleged that he bought out Frank Valdez, “an early investor in the companies and who helped conceive the idea of re-opening Traveller’s, investing nearly $1 million in this venture”.

Mr Klonaris was named because his Elizabeth on Bay plaza was the landlord for several of Mr Dingman’s restaurants, which apart from Traveller’s Rest, also included 25 North Ltd, Island Smoke House Ltd, Out West Hospitality and Bahamex Ltd.

The long list of potential Bahamian witnesses is designed to reinforce Mr Dingman’s argument that the action filed against him in the southern New York court should be dismissed before it even gets started, on the grounds that this nation is the better jurisdiction to here the case.

And, apart from the restaurants being Bahamian-incorporated companies, Mr Dingman said their accounting books and electronic records were all located in the Bahamas.

“The books and records were kept in an office behind the bar at the Traveller’s,” he said, alleging that Mr Giunta and Jason Rolle, the former Bahamian manager for his businesses, had charge of these documents and knew where they were located.

Mr Dingman also denied responsibility for the failure of the Nassau restaurant venture, arguing that he was merely an investor who was not involved in the daily operations and management.

“As an investor in these companies, I was not directly involved in their day-to-day operations,” he claimed, seeking to distance himself from their collapse.

“Rather, the managers and employees of Out West and the restaurants were in charge of day-to-day operations, all of whom ultimately reported to Mr Giunta, who was hired to oversee and manage this venture.”

Mr Dingman and his attorneys, in their bid to dismiss the action against him, then claimed: “This action concerns a failed business in the Bahamas in which several investors joined together to build a network of restaurants under the umbrella of a premium hospitality venture.

“Although the businesses saw initial promise, rampant theft and mismanagement before this action started forced the businesses to cease operations.”

The Bahamian companies involved as plaintiffs against Mr Dingman are FYP and Tile King, the People First (Bahamas) employment agency, IDNet, and Young Digerati (YNG).

The individual Bahamians suing Mr Dingman are Mr Rolle, who claims to be owed $46,113 in unpaid salary and benefits, plus Tyrone Adderley, a contractor due more than $2,000 for work on the Beach Club Cafe at Sandyport.

Their original lawsuit, filed early in the New Year, claimed that Mr Dingman has effectively abandoned his creditors and investors and “fled the Bahamas altogether”, refusing to pay what he owes.

Mr Dingman, though, has denied this, saying: “Although my former girlfriend did have an apartment in New York, our relationship ended last year, and at no point did I ‘flee’ the Bahamas or ‘hide out’ in her apartment.

“To the contrary, as stated, I live in and spend most of my time on the outer islands in the Bahamas.”