Henk Keilman is currently involved in a series of legal proceedings across four jurisdictions: the Netherlands, the Cayman Islands, Poland and the United States. There are four main cases which are interlinked and connected by the same cast of characters. Please see below for an outline of the Sterling Macro Fund dispute.
Sterling Macro Fund
The Sterling Macro Fund (“SMF”) dispute centres on Keilman’s investment in SMF through an investment vehicle, Worthing Properties, Ltd. (“Worthing”).
In 1997, Keilman purchased the Gloria Vanderbilt trademarks from Gloria Vanderbilt, Inc. (the “Trademarks”). In 2002, Keilman profited by $22m from the sale of the Trademarks, which were purchased by a third party (Jones Apparel). The proceeds from the sale were transferred to the bank account of one of Keilman’s companies.
Keilman subsequently decided to invest $9.8m in SMF, a Cayman Islands hedge fund managed by Mr Dabah and his family. The investment was made through a BVI company named Worthing Properties Ltd. (“Worthing”) in 2002 – 2003. By 2012, the investment in SMF had grown to about $23m.
Unbeknownst to Keilman, sometime in 2012 an attempt was made to transfer Worthing’s participation in SMF to a Panamanian company, Victory Hill. Mr Samuel Katz (“Katz”) is one of the directors of Victory Hill, and claims to be its beneficial owner.
Up until 2012, Worthing had received monthly financial reports relating to SMF. Worthing was not informed of the attempt to transfer its participation in SMF to Victory Hill. In 2012, SMF stopped providing Worthing with regular updates. Worthing asked the court in the Cayman Islands to order SMF to provide its accounts and administration. The information that was subsequently made available, revealing the unlawful transfer, provided the grounds for submitting an application to the Cayman Islands court to wind down SMF. As a preliminary measure and following an ex parte request, the court has appointed provisional liquidators who will effectively manage the fund until the court has decided on the application to wind down SMF
Katz has initiated proceedings in the Netherlands, claiming to be the beneficiary of Worthing and its investment in SMF. However, the Keilman trustees believe that Katz’s claims are ill-founded and are defending against them.
Key personalities in the case include Mr Isaac Dabah (“Dabah”) who was the indirect owner of the Gloria Vanderbilt company and the manager of SMF, and also Mr Amnon Shiboleth (“Shiboleth”) who is the lawyer of Dabah and Katz. Both Dabah and Shiboleth are also involved in Keilman’s other cases.
The claim amounts to a minimum of $23m.