The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Satellite Bahamas’ principals have suffered a fresh blow in their ongoing battle with the US’s largest satellite TV provider, after a judge ruled that it could obtain information on their bank and personal financial transactions.

Judge Barry Seltzer, in a December 12 ruling, denied the attempt by Michael and Peter Garraway, and their US-based business, GEL Electronics, to prevent DIRECTV serving subpoenas on three US banks.

Judge Seltzer found that the discovery information sought from Bank of America, Wells Fargo and TD Bank was “relevant”, while limiting this to financial records solely related to DIRECTV was “unwarranted and unworkable”.

Setting out the background to this preliminary skirmish, Judge Seltzer said: “Plaintiff [DIRECTV] alleges that defendants have engaged in a scheme to fraudulently obtain its satellite television equipment and programming, and resell that equipment and programming illegally in the Bahamas.

“During the course of discovery, plaintiff served subpoenas on three banks – Bank of America, Wells Fargo Bank and TD Bank – requesting records for certain listed accounts, as well as for all accounts held by defendants.

“According to Plaintiff, the subpoenas were directed to bank accounts known to have been used by Defendants in connection with their alleged unlawful business.”

The Garraways had sought a protective order from the south Florida district court preventing DIRECTV from accessing these records, as they tried to quash the subpoenas.

“Defendants argue that the subpoenas seek discovery for the sole purpose of aiding in execution of a prospective judgment, which they contend is premature,” the judge wrote.

“Additionally, defendants argue that the records sought are simply irrelevant’. The curt disagrees and concludes that the discovery sought is relevant or is reasonably calculated to acquire admissible evidence.... Accordingly, the court will not prohibit plaintiff from obtaining defendants’ financial records.”

Judge Seltzer said the documents sought were necessary to prove DIRECTV’s allegations, as well as its potential remedy rights, plus back the Garraways’ claims that the US courts did not have jurisdiction over them.

As for the Satellite Bahamas’ principals request that the court limit the discovery scope to records directly related to DIRECTV, Judge Seltzer added: “The court agrees with plaintiff that such limitation is ‘unwarranted and unworkable’. The Court, therefore, will not limit the scope of the subject subpoenas.

“Plaintiff shall inform these banks that they are to comply with the subpoenas and produce the financial records requested thereby.”

The Garraways, and their Top-of-the-Hill, Mackey Street-based business are defending themselves against DIRECTV’s claims that they earned millions of dollars through the unauthorised downloading of its signal, then reselling it to their Bahamas-based customers.

DIRECTV is also demanding that they turn over documents naming all their Bahamas-based customers, including subscribers’ names and addresses, plus copies of customer contracts.

Import permits, and tariff rates, relating to the importation of DIRECTV’s satellite equipment to the Bahamas are also included among the 28 different document requests submitted directly to Satellite Bahamas and its advisers.

Tribune Business revealed previously how DIRECTV is alleging that Satellite Bahamas received almost $8.8 million in revenues through its allegedly fraudulent scheme to ‘pirate’ the US provider’s signal.

And it claimed that efforts by the Bahamian satellite TV programming distributor, and the Garraways, to dismiss its lawsuit would merely “delay the day of reckoning”.