Grand Bahama Island was largely undeveloped until the arrival of Wallace Groves in the early 1940’s after serving two years in a federal prison for mail fraud. In 1955, this former NYC securities executive was granted 211 square miles of the island for tax-free development in the Hawksbill Creek Agreement. He also founded the Grand Bahama Port Authority as a private enterprise. This vehicle, along with payoffs to influential citizens known as the Bay Street Boys, helped Mr. Groves build three casinos plus resort properties. He also had reputed criminal and money laundering activities with the Mob in Miami. In the late 70’s, he sold the Grand Bahama Port Authority to Charles Hayward. The GBPA is still privately owned by Hayward’s descendants.
