Road Town, Tortola, Virgin Islands - On Thursday May 28, 2025, Guavaberry Media released an article on the possible liquidation of Bank of Asia (BVI) Limited. Within three (3) hours after the story ran, the Virgin Islands Deposit Insurance Corporation (VIDIC) and the Financial Services Commission (FSC) initiated PR control by releasing a statement notifying the public of their move to wind down the bank. Their silence of the matter was finally broken after more than two (2) years.
By Friday morning May 30, 2025, the Government of the Virgin Islands too, released a statement supporting the decision of VIDIC and the FSC, and citing protection of the financial services industry. The Government too, was now prepared to break its silence on the status of the bank.
Within moments of Guavaberry Media releasing the initial story, the local financial services community went into meltdown, and a flurry of information flooded out into the public space. Our newsroom was and still is inundated with information on the situation.
VIDIC, FSC, Financial Services and the Premier’s Office (Junior Minister Lorna Smith, Financial Services, Banking and Finance) remain on high alert. We understand a team has been mobilised to monitor and manage the fallout from the situation, and to allegedly cover errors.
History of Bank of Asia (BVI) Limited
Bank of Asia (BVI) Limited we understand, was the brain child of the Honourable Lorna Smith OBE, back in late 2014 when she was not a Minister but an avid participant in financial services. The idea was birthed under the leadership of her husband Dr. D Orlando Smith, Premier at the time and leader of the National Democratic Party (NDP).
The idea came about as an aid to help incorporations open bank accounts to do business in financial services. The bank was an anticipated and well celebrated idea to help strengthen and grow financial services. We understand its more recent ambitions have evolved into becoming the FinTech and Crypto hub for the jurisdiction.
Robert Mathavious, former Director of FSC was not historically on board with issuing a further bank license we are made to understand, however it is alleged that he was lobbied heavily in 2015 into issuing the bank license given the direct impact the new bank could potentially have on the jurisdiction. It was the first new bank license to be issued in the BVI in two decades. The bank license was issued in 2017, and the bank started officially operating in June 2018 with Lorna Smith and Carson Wen allegedly at the head. It is alleged that Lorna Smith at the time, prior to running for elected office was paid $15,000 monthly for her service to the bank, and was the Chairman from about 2020. Lorna Smith we understand was intricately involved in the setting up and runnings of the bank up until her departure to run for public office in 2023.
Deon Vanterpool, nephew of Lorna Smith was the Vice President from 2017, and at the time of the winding down announcement, we understood to be the President and a board member of the bank.
Peter Reichenstein, who is known to be a close friend of Lorna Smith, was appointed President of the bank in March of 2019. He replaced Wayne Yang as President. We are unaware of his departure date from the bank, or his reason for leaving. We understand his time at the bank was short.
We understand some $75 million dollars or so has been invested in the bank and its affiliates, with the bank being valued at some $500 million very recently.
We also understand from multiple sources that quite recently before the current adverse events unfolded that credible investors and buyers willing to offer very substantial sums were circling the bank. However, for unknown reasons they were rebuffed and were provided no information. We also have learned from multiple sources that existing shareholders had no knowledge of any issues with the bank prior to last week’s events. Why?
Founders of Bank of Asia Sued
By early 2017 however, potential trouble was on the horizon for the bank when its then majority owners, Carson Wen, his wife Julia Yuet Shan Fung, and the direct majority shareholder Bank of Asia (BVI) Limited, Sancus Financial Holdings Limited, were sued by Chad Holm, a former senior banker at Citigroup and Bank of America who was involved with Bank of Asia in its early stages. Wen is a Hong Kong lawyer with very deep ties inside the China government where he served three terms in its National People’s Congress. The lawsuit pertained to an alleged breach of contract by Wen, his wife and Sancus, and involved 22% of the shares in Bank of Asia and other affiliated entities due to Holm. The bank was not a direct party to the proceedings. The Judge returned a ruling in Holm’s favour in December 2018 entitling him to damages to be determined.
When appealed, the Court of Appeal upheld judgment in March 2020 in Holm’s favour and the Privy Council again upheld the judgment in Holm’s favour in November 2022.
By September 2023, after an application by Holm, Justice Wallbank of the BVI courts made an order for a worldwide freezing injunction on Wen’s, his wife’s, and Sancus’ assets including its shares in the bank. By this point Sancus owned slightly less than a majority interest in the bank. Each has been prohibited from dealing with their assets after it was found that they were a real risk to dissipate them, having previously given away over $10 million to their son whilst breaching other court orders.
The Court of Appeal in the BVI upheld the worldwide freezing injunction on the Wens and Sancus in late March 2025 referring to Wen as ‘dishonest’. In earlier judgments, Holm was referred to as a thoroughly believable and impressive witness.
The Bankruptcy Cases
A Liquidation Order was made in the Commercial Court of the Virgin Islands against Sancus Financial Holdings Limited in July 2024, and Bankruptcy Orders were made against Wen and his wife in January 2025. The applications were brought by Holm after Sancus, Wen and his wife failed to pay debts owed to him.
Bank of Asia (BVI) Limited Falls In Trouble
With the legal battles that mounted around Wen and his wife, it is alleged that information has been suppressed inside the bank from all entities including VIDIC, FSC, the Government of the Virgin Islands, and more recently even the shareholders. It is alleged that the Bank had not turned in audited accounts to the FSC dating back years, and the FSC led by Kenneth Baker was reluctant to pull the plug on the bank despite the egregious breaches.
Under the Banks and Trust Companies Act, it is a requirement that financial statements and auditor reports be filed with the FSC within six months after the end of each financial year and they are to be published and circulated in two (2) local newspapers. Guavaberry Media has been unable to locate any financial statements or auditor reports for Bank of Asia BVI.
The Banks and Trust Companies Act does not appear to allow for exemptions of any entity from filing financial statements and auditor reports except for extensions of time not to exceed three months. A further extension under subsection (2) of section 17E may be granted subject to such conditions as the Commission considers appropriate.
The bank we are understanding, is not in full compliance, and has not been for some time but has been allegedly protected. Why?
On Thursday May 29, 2025, liquidators moved on the Bank of Asia (BVI) Limited; and by Thursday afternoon, VIDIC and FSC issued a statement confirming that they had initiated winding down procedures on the bank.
Government Agencies Complicit in Protecting, Aiding & Abetting and Possible Cover up?
It is alleged that Government entities have participated in and turned a blind eye to the Bank of Asia BVI’s situation, and have played a part in protecting Wen, thereby the bank. But in protecting Wen have they protected the bank or have they instead orchestrated its potential demise?
BVIHSA - While in the Territory in late 2024, it is concluded that Wen, per a doctor’s letter, had a massive heart attack and was unable to attend court between 6 to 13 November 2024 for the trial that would determine further debts he and the others owed Holm. The trial was then adjourned indefinitely due to Wen’s health. A doctor’s note was issued to the Judge from a top official at the Dr. D Orlando Smith’s Hospital. However, Wen turned up on Friday November 29th, barely two weeks later, at the launch party of the Cane Garden Bay Beach Hotel (formerly Quitos). He arrived with former Premier Dr. D Orlando Smith and appeared to be in immaculate health, great spirits, and interacting and meeting persons.
It is alleged that Wen did not show up for the trial in an effort to frustrate and delay the case. A move we understand to have been well orchestrated along with others in the Territory.
FSC - Despite Bank of Asia allegedly not being compliant for some years, Kenneth Baker, Director of FSC we understand, allowed the bank to continue to function as normal. Despite attempting to gather information from the bank and being denied on several occasions, the bank was allowed to continue doing business despite apparent red flags.
Lorna Smith OBE Conflicted and more…?
While Honourable Lorna Smith OBE would appear to now want to distance herself from the Bank of Asia fiasco, she cannot, and should not be allowed to. She is responsible for the bank’s existence in the BVI. She was intricately involved in the bank up until running for Government. We understand that allegedly Carson Wen and Lorna Smith and members of her family are very close friends and allies.
When elected, Smith joined the ruling party and became the Minister for Financial Services and Banking, giving her governmental control over the Bank of Asia and all banks in the British Virgin Islands.
She became Kenneth Baker’s (FSC) boss. She became Lisa Violet’s (VIDIC) boss. She was in a position to give directives and control the movement of information between banks and regulators. She was in a position to caution the regulators. She was in a position of control and power. She was compromised and conflicted. Not only with Bank of Asia we understand, but also it is alleged with the dealings of National Bank and another major bank in the British Virgin Islands due to entities close to her doing major business with said banks and how the said business was being conducted.
Honourable Lorna Smith was fired by the sitting Natalio Wheatley lead Government in October 2024, only to be rehired in March 2025 as Junior Minister responsible for Financial Services and Banking once again.
While her move to return to the Government benches brought swift responses of displeasure from the public with simple talks of her obsession with power, could her move have been more sinister than just a seat on the Government’s side?
Being the Media house who initially broke the story of the intended move back to the Government’s side, our Editor in Chief was labelled a trouble maker, liar and our newsroom accused of carrying wrong information. However, our newsroom was reliably informed of the many moves to get Hon. Smith back on the Government’s side. Many of these negotiations we understand were allegedly undertaken by close members of her family who many consider to be her advisors and handlers. We understand there was urgency to get her back on the Government’s side to the point where the Premier was said to have become uncomfortable with the pressure. Her rehiring was done under the guise of working in the best interest of the Territory, and Smith being ‘good’ for financial services.
Premier Wheatley Duped Once Again?
Five (5) million dollars of tax payers’ money was deposited on Bank of Asia as admitted by the Premier during a House of Assembly sitting yesterday, Tuesday June 3, 2025. Guavaberry Media has attempted to confirm at what point of the bank’s existence the money was deposited but questions to the present Premier Dr. Natalio Wheatley and former Premier Dr. D Orlando Smith have come up empty.
However, it is alleged that the instructions to deposit the $5 million dollars to the Bank of Asia was given directly by Honourable Lorna Smith, then Minister of Financial Services and Banking, to the Accountant General. We understand that it was was alleged to have been done at a period while she was Acting Premier and the Premier was out of the Territory.
Important questions of why, given the troubles of the owners of the bank, problems which could have fallen back on the bank, and has, would the decision to place $5 million dollars on the Bank of Asia be made? With the bank now in liquidation, the Government stands in line as an unsecured creditor and stands to lose taxpayers money yet again to secured creditors ahead of them in line. If the money is recoverable at all, it may be as little as pennies on the dollar. Is this BVI airways Deja vu? Why were the monies placed?
Further, in a 2023 statement by the then Minister of Financial Services indicated that Bank of Asia was the best performing bank in the BVI with nine loans granted to customers and all were performing. There are many conspiracies as to who these loans were made to. Liquidators have been appointed to trace that money and when found will attempt to claw it back to satisfy the judgment debt of the creditors of the bank. We will organize updates on this aspect once we have further updates from the liquidators.
Has Bank of Asia Been Dealt a Bad hand? Has more taxpayers money been lost in this cover up? Who is to blame?
Is It too Late to Rescue the Bank?
Multiple sources have confirmed that credible investors have expressed strong interest in Bank of Asia for many months but have been sidelined. Why? Did the FSC and VIDIC know about this and if so why were the investors turned away? Did the Government know about this and keep it from the regulators? If the regulators did know, would VIDIC have taken action to wind-down the bank and potentially expose it to losses on insured deposits? Why were shareholders not kept apprised of the situation so they could potentially help? As the VIDIC Act reads, VIDIC must conclude that there is no reasonable prospect of a private market solution before determining a bank has failed or is likely to fail. But was there and is there a private market solution, particularly with Wen now out of the picture? Answers to all these question must be provided.
Can there Still Be a Positive to Come of This? Many say Yes.
Bank of Asia in its current state may be a zombie bank, but multiple sources have confirmed that its potential in the right hands may be endless. It has the potential ability to be the poster-child success story at a time that the jurisdiction most needs one, and can do so (only) with substantial capital backing to evolve into a proper fintech and crypto-focused bank. But if this is to ever happen, it must be operated and governed by highly credible and totally independent individuals dedicated to good governance and complete transparency. A very substantial capital investment would create dozens upon dozens if not more well-paying jobs and elevate the jurisdictions’ status as a leading FinTech and crypto ecosystem. Without a licence bank dedicated to this purpose, all the ambition may remain just that. A failed bank cannot help transform the financial services perception and profile whilst the country is facing great headwinds. A positive headline about a substantial investment coupled with an advertised strategy validating the hard work of many on the FinTech and Crypto space most certainly can. Are the skeletons in the closet so great that self-interests have prevented this? Answers are needed; and now before it is too late. Bad actors and their personal ambitions and a potentially transformative business must be separated.
More to come as this story continues to unfold!