Dr. Mitchell has denied the allegations and claimed to have taken legal action against a Miami-based financial newsletter, Offshore Alert, which first published the allegation. Offshore Alert alleged that the Prime Minister had received some US$500,000 from one Eric Resteiner, but Prime Minister Mitchell dismissed that claim on numerous occasions, saying that he only received approximately US$15,000. From then until this present moment the Prime Minister has steadfastly maintained his innocence.

A government press release on May 10, 2004 stated, "The Government of Grenada is taking legal action against KYC News for an article published by Offshore Alert on April 30, 2004 about Prime Minister Keith Mitchell."

Mitchell subsequently refused to answer questions about the allegation in parliament on May 28, claiming the matter was sub judice because he had filed a libel action against Offshore Alert's publisher.

However, according to information currently available to Caribbean Net News, KYC News has never been served with a summons.