The Tribune

By LAMECH JOHNSON Tribune Staff Reporter ljohnson@tribunemedia.net THE US Embassy has expressed its concern after an American citizen died while on remand at Fox Hill Prison. Married father-of-two Steve DeGruiter died in hospital days before he was due to be sentenced for his part in a $100 million attempted fraud case. The embassy's concerns were raised shortly after the family of Mr DeGruiter expressed their shock over his death on February 7, believing it to be "very suspicious", resulting from those he tried to conduct business with. However, Assistant Commissioner of Police Anthony Ferguson yesterday could not say if there is a criminal investigation into the death of 60-year-old Indonesian-American businessman. He said: "I know that we investigate all deaths, but I don't know that we are doing a criminal investigation with respect to this death." In a statement to The Tribune, US Embassy spokesman Erica Thibault raised concern about the death and the treatment of Mr DeGruiter during his incarceration at Her Majesty's Prison. "Mr De Gruiter's death is deeply concerning. One of the US Embassy's top priorities is to ensure all US citizens detained in the Bahamas receive appropriate medical care. "US Embassy Nassau consular officers visited Mr DeGruiter on several occasions during his incarceration," she said. Relatives of Mr DeGruiter last night called for an investigation into what they believe is a "suspicious death", believing the deceased and co-accused Carol Collins, 50, of Massachusetts, to be innocent of the offence with which they were charged and convicted. A family member, who asked to remain anonymous, said: "Steve leaves behind two brothers, a sister, a wife, son and daughter and a granddaughter in the US. Steve always abided by the law and never even received a speeding ticket in the US for his respect and need to always abide by the law." The relative said Mr DeGruiter's successful business connections in Indonesia introduced him to co-defendants Hirofumi Tanabe, 57 and 72-year-old Katsuichi Yufu. "Mr Yufu claimed to be in possession of a $100 million cheque made payable to a Japanese businesswoman and had Japanese ministry documents authorising Mr Yufu the exclusive right to represent her interest," claimed the relative. "Steve called me from Indonesia and asked about my ability to put together a team of financial investors who would be interested and had the wherewithal to trade on the world market and turn this $100 million into a high yield return without reducing the original amount nor the need to use the cash." The family member went onto say: "The $100 million was to be invested into a new account for an offshore corporation owned solely by Mr Tanabe and Mr Yufu. This is how Ms Carol Collins came into the picture as she was introduced to me by a mutual friend of Steve and I." Ms Collins reportedly flew to Nassau to meet Mr DeGruiter, Tanabe and Yufu and his Bahamian business connection "who has been in the news before" and has "far more reaching tentacles than we expected". The Bahamian business connection reportedly was not able to produce the legal documents for an offshore corporation for Tanabe and Yufu, despite being paid $15,000. The relative said: "It became evident that he had his own agenda which included the merging of his mining company with this $100 million investment. Steve and Carol apparently realised the connection's stalling, claimed the relative, while the Japanese had "spent cash and were getting impatient" with the Bahamian businessman and Steve. "Steve was simply a go-between but the Japanese held him responsible for ensuring that the parties involved were legitimate and experienced. Ms Carol Collins' duty was to ensure the $100 million cheque was for real and she was to conduct due diligence to ensure this matter." Relations with the local businessman went south and when Steve and Collins' suspicions were confirmed through "the rejected credit card payments for Ms Carol's Hilton room," the pair followed through on the task that the mining company owner was paid to do. Collins however, reportedly received death threats on her cellphone from the man "threatening that Steve and her would never leave the Bahamas alive and that he was ready and willing to produce the offshore corporation and proceed with the investment". The relative firmly believed that the charges against Mr DeGruiter were false. "Neither he nor Ms Carol were ever in possession of the check in question in the amount of $100 million." He said: "This cheque belonged to the Japanese, and Steve and Ms Carol were attempting to have the Japanese verify the validity of the check at JP Morgan Bank." However, Magistrate Guillimina Archer did not accept this explanation. On Monday, February 13, the magistrate handed down her verdict to Collins, Tanabe and Yufu. They were convicted of attempting to obtain $100 million cash by false pretenses from EFG Bank and Trust through a forged JP Morgan cheque on July 8, 2010. They were convicted on two counts of uttering a forged document and another two counts of attempted fraud by false pretenses. The three were sentenced to serve 20 months at Her Majesty's Prison on each count. The sentences are to run concurrently. Magistrate Archer's ruling had been delayed by one week because of the illness of the fourth accused, Mr DeGruiter, who was unfit to appear in court. On Monday, February 6, prison officials notified the court that Mr DeGruiter was not in a fit condition to appear. The magistrate, having seen the accused in a wheelchair outside, agreed and ordered that he be taken to hospital. She stood the matter down for two hours, but when court resumed, Mr Gruiter's attorney Godfrey Pinder said his client had not been to hospital, but was returned to prison instead. Cellmate and fellow American John Forest, in his contribution to the matter, claimed prison officials had not paid attention to DeGruiter's health problems. He said: "A few nights ago, he started throwing up blood on the floor. I called the correction officers and told them about it. They left and they returned with Pepto-Bismol and they told him to walk to the medical ward. "I told them that he could barely stand and we got into an argument." Forest said the prison officers returned with two inmates who were instructed to carry the accused to the medical ward. "They carried him on their shoulders like a sack of potatoes despite his obvious spinal condition. I'm no doctor, but I know, we know that something is wrong with him." Magistrate Archer said she would ask Supt Elision Rahming why his officers disobeyed a direct order from the court to take him to hospital. She then stood the matter down to February 13. Supt Rahming, however, denied the prison disobeyed the court's order for Mr DeGruiter to be taken to Princess Margaret Hospital for examination and treatment. Forest reappeared before Magistrate on February 13, after the ruling in the $100 million attempted fraud case. Before his sentencing for pleading guilty to $90,000 in credit fraud, the American told the Magistrate he had received death threats in prison for his defence of Mr DeGruiter in court. He explained he was fearful despite being relocated in the prison after speaking with prison officials about the threats, which arose from his speaking out about DeGruiter's treatment. The day following the case's ruling, Supt Rahming explained that the prisoners heading to court from Bank Lane were under the care of the police through a special warrant. He explained he had no intention of demeaning a fellow law enforcement agency, but he wished for the public to understand the facts and not automatically place blame on the prison. "Prison officers do not go in court," he said. He explained that he spoke to Magistrate Archer about the case. He claimed she had given the order to a police officer who relayed her "PMH request" to a prison officer. However, he said, "the officer told my prison officer that the magistrate ordered for the prisoner to go back to the prison to be seen by a doctor". He said that the instructions were followed and DeGruiter was "immediately examined by our doctor" upon return. "I'm not sure when he was taken to the Princess Margaret Hospital. It could've been early the next day (February 7), but I believe it was later that day." Supt Rahming then defended the prison's care of the deceased during his imprisonment. "Based on all of the information I have collected, he was given excellent care by our medical ward throughout his period here at the prison." The prison chief explained that proof of DeGruiter's treatment since incarceration in July 2010, "is all documented and on record". Meanwhile, the US Embassy expressed its condolences to Mr DeGuiter's family and said it will "continue to work closely with Bahamian authorities to clarify the circumstances of his death".