The original developer of the Baha Mar resort in the Bahamas, Sarkis Izmirlian, has won approval to proceed with a $2.25 billion fraud claim against China Construction America (CCA). The ruling was made by New York State Supreme Court Justice Saliann Scarpulla.

Izmirlian, who invested $845 million in what was planned to be the Caribbean's largest leisure development, claims CCA deliberately forced him out of the project and drove his company, BML Properties, near bankruptcy. The property was later sold to Hong Kong-based Chow Tai Fook Enterprises (CTFE) in 2016.

The project's timeline reveals a troubled history. Conceived in 2005 as a "Vegas by the sea," the original development partner withdrew in 2008 during the Great Recession. The Export Import Bank of China (ExIm) then provided a $2.45 billion loan, installing CCA as both controlling shareholder and contractor.

The lawsuit alleges that CCA:

• Never intended to complete the project on time or within budget
• Used the site as a training ground for inexperienced workers
• Submitted fraudulent billings worth hundreds of millions
• Caused a severe liquidity crisis between March and June 2015

Justice Scarpulla rejected CCA's request to move the case to arbitration. CCA must file its defense by February 13, 2019. The case is particularly significant as it involves a Chinese state-owned enterprise and represents what Izmirlian's lawsuit calls "one of the largest construction-based frauds in this hemisphere."

The resort eventually opened in May 2017, years behind schedule, under new ownership. Izmirlian lost his entire $845 million investment and expected future profits from the resort.

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