Beautiful Virgin Islands

Thursday, Jun 26, 2025

Betteto Frett loses multi-million dollar suit vs FirstBank

Betteto Frett loses multi-million dollar suit vs FirstBank

The High Court has ruled against local businessman and hotelier, Betteto Frett, in a suit he brought against FirstBank in relation to several unpaid loans.
According to the court document seen by BVI News, Frett borrowed some $6.7 million from FirstBank in March 2012 under three loan agreements — all of which were repayable by April 2019. All of the loans were reportedly charged on land he held in Road Town and West End.

But following hurricane Irma in 2017, the properties sustained damage and Frett ceased to make loan payments. While the bank received insurance monies, only some of this was advanced to Frett, while a portion was held back.

The court heard that Frett wished to redevelop the Road Town property into a hotel and he claimed that while FirstBank was initially willing to advance a loan for this purpose, the bank later refused, thereby causing him damage. Frett also alleged that FirstBank underinsured the two properties.

Frett filed a claim against the bank for damages and to prevent the institution from selling the properties under the terms of its charge.

The bank in turn counterclaimed for monies due under the loans and for consequential relief under the bank’s power of sale of the properties.

Insurance and underinsurance

It was noted that FirstBank took out insurance with Nagico which Frett used, and while Frett asserted that he kept up the insurance throughout up until June 2014, it was found that there were periods where he had not paid the premiums on time and the insurance had lapsed temporarily.

This fact, coupled with an uninsured loss by fire on an adjacent building, caused FirstBank to take over the payment of the insurance. The court revealed that Frett was aware of this and pointed out that the bank granted Frett a $72,000 loan in August 2016 to regularise the bank’s payment of the insurance which was due in 2016–2017.

After Irma, both the government and a jewellery store — tenants which previously occupied his Road Town property — vacated the premises and Frett ceased to service the loans from FirstBank. No payments were recorded since September 2017 while insurance payments totalling some $2,398,067 were made to the bank by Nagico between January and April 2018.

The court found that, although Frett complained that the bank had underinsured the buildings, no valuation of the reinstatement cost of the buildings was presented in evidence, although the reinstatement value serves as a critical parameter for assessing whether a building is adequately insured.

Hotel trouble

Frett then decided to convert the Road Town property into a 3-star hotel which would have a reception and 20 bedrooms on the first floor, while the second and third floors would each have 17 bedrooms. At one point, consideration was even given to having a bar on the roof and a swimming pool, but these were later abandoned.

It was related that at no point did Frett draw up specification works, nor was any attempt ever made to find a prime contractor on the project. Instead, Frett intended for himself to be the prime contractor, and also took on what would normally be the role of the contract administrator.

The only form of documentation the businessman prepared was four floor plans – everything else was effectively in his head, the court said.

The court said it found this surprising and unprofessional for what it noted was intended to be a turn-key hotel project. Frett reportedly told the court that he intended to purchase goods such as lavatories from China for the installation in the proposed hotel, but no bills of lading or other evidence of the purchase was put into evidence. The goods never reached Tortola and it is unclear whether a definite order for the goods had ever been made at all.

Frett wasn’t deliberately lying

The court heard from several expert and lay witnesses for both parties during the trial — one of whom noticed after visiting the property that wiring was exposed and hanging from steel beams. During the inspection, employees of Frett were allegedly found to be housed at the location and living with exposed wiring. It was further related that there were only temporary doors installed in each of the living quarters.

Justice Adrian Jack noted in his ruling that, among other things, he did not find Frett to be a ‘satisfactory witness’ when he gave evidence.

“I do not think he was deliberately lying, but as a businessman, he took such a rose-tinted view of the prospects of success of his hotel project that he failed to take an objective view of the contemporaneous facts. On some matters, I had no hesitation in preferring FirstBank’s evidence.”
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
×