I would need more details to be able to answer this question. Can this person confirm whether they were subject to an administrative fine in relation this previous overstaying? And also what year we are talking about, as one would need to review the immigration law in force at the time.
Can a previous overstay of a tourist visa hurt my residency application?
I am from South America and fell in love with the Cayman Islands many years ago, when I overstayed my visa and lived there for over a year. Now I am interested in relocating there, this time legally, with a direct investment. Will my past overstay ruin my application? Is there anything I can do to make my application better, business-wise?