David Lee freed on fraud, misbehaviour charges

UNITED National Congress (UNC) deputy political leader and candidate for Caroni Central, David Lee, has been cleared of fraud and misbehaviour charges related to tax exemptions on his vehicle as a parliamentarian.

On April 7, acting Chief Magistrate Christine Charles upheld a no-case submission by Lee’s attorneys. Charles ruled that the prosecution’s evidence did not cross the threshold to send it to the High Court for trial.

Also discharged was firearms dealer Hugh Leong Poi, who was jointly charged with Lee in September 2022 for allegedly conspiring to defraud the state of $1.4 million in motor vehicle taxes.

In an immediate response, Director of Public Prosecutions (DPP) Roger Gaspard, SC, told Newsday, his office intends to apply for a judge’s warrant for the two. This can be done, in law, when the DPP believes there is enough evidence to take the matter before a judge.

A judge will then review the evidence and decide if to issue the warrant, also called a bench warrant, which could see the two being rearrested on the charges and facing the High Court directly.

Lee was the former MP for Pointe a Pierre. In a statement shortly after his arrest, Lee described the case as a "political witch-hunt and distraction" orchestrated by the People's National Movement (PNM) government. He maintained that he owned the vehicle and had declared it in his annual submissions to the Integrity Commission.

"Put simply, I have been charged for a vehicle that I am the legal owner of, but this is an issue I am confident, given the proof, will be vindicated in our nation’s court," he said.

Speaking on April 7, Lee maintained his innocence.

“Prayers are answered and were answered. I want to say thanks to my family, my parents, and my wife, special people who stood by me. I had fantastic lawyers. I want to say special thanks to our political leader and Opposition Leader, Kamla Persad-Bissessar.

“She stood by my side for the past three years, through thick and thin, knowing very well that a lot of people would have been doubting my innocence. I really want to thank her for the support and loyalty she has shown to me over these past few years.

“She did not wilt or bend under the pressures that I am sure she would have been under. I thank God that I have always maintained my innocence, and I now feel vindicated given what was said about me by Rowley, Stuart Young, Imbert and that whole political victimisation that took place over the past three years.”

He further thanked the court for its comprehensive decision.

“God is great and watch out for the dragon.”

Lee took issue with former UNC member Larry Lalla, who mentioned Lee while speaking at a PNM meeting in Tunapuna on April 5.

“I noticed Larry Lalla, who is now representing the PNM, went on a tirade with my name on the weekend on a platform. I want to tell him: I am coming for you Larry Lalla.”

Asked to comment at a press conference in Tobago, Prime Minister Stuart Young said, “The government, the central government, the government that I lead, we have no interaction with criminal charges.

“We are not the persons who bring criminal charges.There's an office of the Director of Public Prosecutions. That is a constitutionally independent office.”

He said all questions should be directed at the DPP.

“It certainly wasn't anyone in the government or the PNM government that charged Mr Lee.

“So I assume whoever charged him had evidence that they thought would support a charge. From my experience in the courts it is for the court to determine…Assuming it was determined by a court what happens with what is brought before it.”

Lee and Leong Poi were jointly charged with conspiring to deprive the state of tax revenue related to the importation of a Mercedes-Benz G63 AMG valued at over $2 million. The offences were alleged to have occurred between March 24 and June 8, 2019.

In addition to the misbehaviour charge, Lee was accused of falsely claiming that the vehicle was his to claim tax exemptions entitled to him as an MP. The taxes in the case included $293,094.02 in Value Added Tax (VAT), $298,650 in motor vehicle tax and $824,548.62 in customs duty.

Under their terms and conditions of employment, MPs are allowed periodic tax exemptions for motor vehicles but are required to pay the taxes if they seek to sell the vehicles within two years of claiming the exemptions.

The charges were in connection with the purchase of a $2.3 million Mercedes-Benz and whether the $1.4 million in tax exemptions derived may have benefited a party financier.

In their no-case submission, Lee’s attorneys submitted that the prosecution failed to prove an agreement between Lee and Leong Poi to defraud the state of taxes.

They claimed the state had not established a prima facie case that Lee, as a public officer, had committed misconduct. They argued the evidence was too weak to send to a reasonable jury and highlighted that cross-examination of then-acting ACP Wendell Lucas, who arrested the two, revealed no actions by either man indicating conspiracy.

They maintained that the charge depended on an alleged conspiracy, but no incriminating act was shown. The defence further argued that that Lucas admitted members of Parliament faced no restrictions on vehicle purchase value or financing source under tax exemptions, and the car remained legally Lee’s with no limits on its use. They contended that the state’s inference that Leong Poi was the beneficial owner lacked evidential support, especially with limited proof.

They further argued the surveillance of Lee’s home was minimal and the police failed to investigate Lee’s interview statements, weakening the case. Additionally, they said testimony on the vehicle’s ownership amounted to inadmissible hearsay.

Speaking in Parliament in October 2020, former prime minister Dr Keith Rowley raised the issue of vehicle tax exemptions for parliamentarians and capping it. Former finance minister Colm Imbert also raised the issue during his contribution to the budget debate.

He said, “The most expensive car of all Members of Parliament, probably in the history of this Parliament, Madam Speaker, a four-litre Mercedes-Benz AMG G63 valued at $2.3 million,” while referring to Lee.

Immediately after Lee’s arrest, Persad-­Bissessar came to his defence, saying he had done nothing illegal. Persad-Bissessar said Lee “has not broken any law. He has done nothing illegal. That was a facility afforded according to the law at that time. It is still the law”. The UNC also said it stood by Lee, describing the charges against him as “trumped up.”

“This is the typical PNM playbook with complicit operatives within the police service designed to embarrass and defame. As usual, the case will roll on in the local court system for the next 20 years until MP Lee will be eventually cleared of the trumped up charges."

At the time, the UNC described Lee’s arrest as a deliberate, calculated and well-timed distraction by agents of the PNM to save the government from unrelenting condemnation by the population.

"This is the start of a reign of terror that we warned about. It comes when the UNC and other opposition voices are in the ascendancy. We will never be hounded and bullied into silence. We will continue to speak out and attack this corrupt and incompetent PNM government by the hour."

Lee was represented by Wayne Sturge, who is also the UNC's candidate for Toco/Sangre Grande, and attorneys Mario Merritt, Alexia Romero and Randal Raphael.

Senior Counsel Pamela Elder and Russell Warner represented Leong Poi.