Tag Archives: Antonio Flores

Expat equity release victims take on banks

September 13th, 2011
Story by Sean O'Hare | The Telegraph

The directors of action group Equity Release Victims Association stand to lose their homes Photo: Larry Lilac / Alamy

Tempted by the offer of a salary for life and an inheritance tax reduction, organisers of Equity Release Victims Association, Ian Sherdley, 69, and Euan Armstrong, 73, used their Spanish holiday homes as collateral to buy into the equity release schemes.

The schemes were sold by independent financial advisors working the expat communities along the Costa del Sol on behalf of Denmark’s biggest bank Danske Bank and Nordea Bank SA.

They were told that if they took out full mortgages against the value of their Andalucian homes, which were fully paid for, and then gave the money to the bank to invest, their inheritance tax liability would be reduced and they’d receive a small lump sum, as well as a monthly return on the bank’s investment which would cover the cost of the remortgage and provide a small salary.

Mr Sherdley, from Lancashire, and Mr Armstrong, from Scotland, followed the advice only to be later told by their Nordic Banks that the investments had gone badly, the remortgaged money had been lost and their homes, with a combined value of €4.5 million, suddenly belonged to the banks.

It is thought that there could be hundred of expats in similar positions across Spain and France.

A Spanish court has so far suspended the banks’ foreclosure and repossession orders on the properties, while a decision as to how the cases will proceed is expected in the near future.

According to Mr Armstrong’s lawyer, Antonio Flores from Lawbird Legal Services, the schemes were mis-sold, bearing in mind it is illegal to knowingly indebt yourself in order to reduce your inheritance tax liability.

He said: “We want to find out exactly how many of the schemes were sold, to who, and on what basis.

“As far as I can gather, retired expats were targeted because they had paid off their mortgages, so could use them as collateral and would be tempted by talk of reduced inheritance tax liability.”

Mr Armstrong added: “We encourage everyone who, like us has been sold one of these schemes to get in touch.

“Do not lie down and take this. These banks are making billions every year with your money.”

A spokesman for Nordea bank said: “We can’t comment, but we can say is that Nordea runs its business in compliance with local laws.”

A spokesman for Danske Bank said: “According to the law we cannot comment on individual customer cases nor questions related to individual customer cases. We have no comment.”

If you have a story to tell about equity release, please contact sean.o’hare@telegraph.co.uk.

Expats in Spain battle the banks

September 13th, 2011
Story by Wendy Williams | The Olive Press

UNITED: Euan Armstrong and Ian Sherdley have joined forces against the banks

Euan Armstrong, who the Olive Press reported is taking Danske Bank to court after it convinced him to use his two million euro Malaga home as collateral, has now teamed up with fellow expat Ian Sherdley, 69, to form the Equity Release Victims Association.
“We are forming an association to prevent these banks from robbing expats of their property by offering a pile of cash as part of an investment plan,” explained Armstrong, 73, who lives in Marbella.
“Equity release is not safe and a loan against the property with the idea of hiding the money in an offshore account or removing the money from the value of the property is certainly illegal in Spain.”
Sherdley, 69, from Lancashire, who has lost a staggering 2.5 million euros through a similar scheme with Nordea Bank SA, added: “These banks are just trying to fill their coffers. So now we are working on getting a legal voice to pursue them through the criminal courts.”
The pair are being backed in their venture by lawyer Antonio Flores from the Marbella based firm Lawbird.
“The purpose of the association is to support people through their predicament,” Flores explained.
“Equity release is actually killing people, through such degrees of stress. Their livelihoods are being reduced and in some cases their lifespan.

“We have decided to do something.”

Now Armstrong and Sherdley are calling on other victims – believed to run into the hundreds – to stand up and fight these huge financial institutions.
“We ask everybody to join us who has or is suffering a similar rape and pillage from a Scandinavian Bank,” said Armstrong.
“Do not lie down but stand up and fight them.
“These banks are making billions of euros every year and stealing your money.”
When questioned both banks said they were unable to comment on individual cases.

Documents

I’ve lost my home through equity release scheme

August 24th, 2011

AN expat is taking Denmark’s biggest bank to court after it convinced him to use his Marbella mansion as collateral in an equity release scheme.

Euan Armstrong, 73, is in litigation after the scheme left him almost penniless with the bank trying to force him to sell his two million euro home to pay off debts. The pensioner had joined the Danske Bank scheme believing it would give him a salary for life, as well as reduce inheritance tax for his daughters – who would be liable to pay Spain’s top rate of 34 per cent.

But Armstrong, originally from Scotland, now faces losing his home. “The whole case is a mess of illegal contracts, bad investment and a loss of clients money in spite of Danske Banks’ huge profits,” Armstrong told the Olive Press. “We must stop these banks stealing our money.”

Armstrong claims he was convinced by three employees in the now-shut Mijas branch that taking out a million euro mortgage would reduce his two daughters Caroline and Kristen’s inheritance tax liability by half.

Illegal

Within the plan Danske Bank was supposed to use 850,000 euros to invest in bonds, Swiss Francs and Euros with the ‘profits’ being used to pay off the mortgage. Meanwhile, a 150,000 euro lump sum would be given to Armstrong as part of the equity release deal.

However things did not go to plan. After the first year Armstrong realised that the bank had actually lost him 18,000 euros. “And then for the next five years it continued to lose money and in 2009 I was told by an account manager in Luxembourg that I should sell my property and pay the bank back the 650,000 euros they had lost.” When he refused Danske Bank issued a foreclosure on his house and also a repossession order through Coin court, which would have taken place in July.

Fortunately however, his lawyer stepped in and obtained a court ruling suspending the repossession. According to boss Antonio Flores, of Lawbird – who is also filing eight separate cases against various Nordic banks in a similar situation – it is actually illegal to indebt yourself in order to reduce your inheritance tax liability.

Nonetheless, he estimates that hundreds of people fall victim to these schemes. “This type of product, peddled by unauthorised agents under the auspices of supposedly reputable banks is becoming more and more common and should be avoided at all costs,” he explained. A Danske Bank spokesman said: “According to the law we cannot comment on individual customer cases nor questions related to individual cases.”

The investigation continues.

Expat goes up against Denmark’s biggest bank in a bid to save his Malaga home

August 3rd, 2011
The Olive Press

Euan Armstrong, 73, who lives in Marbella, was initially lured in by the false hope he could reduce inheritance tax for his two daughters – who would eventually be liable to pay Spain’s top rate of 34 per cent – and enjoy a salary for life.

But Armstrong, originally from Scotland, now faces losing his home.

“The whole case is a mess of illegal contracts, bad investment and a loss of client’s money in spite of Danske Banks huge profits,” said Armstrong.

“We must stop these banks stealing our money.”

Armstrong claims he was convinced by three separate Danske Bank employees in the Mijas branch that taking out a one million euro mortgage loan against his home would reduce his daughters’ inheritance tax liability by half.

Within the plan Danske Bank was supposed to use 850,000 euros to invest in bonds, Swiss Francs and Euros with the ‘profits’ being used to pay off the mortgage, while a 150,000 euro lump sum would be given to Armstrong as equity release.

But Armstrong added: “After the first year I realised that they had lost me 18,000 euros. For the next five years Danske Bank continued to lose money and in 2009 I was told by an account manager for Danske Bank in Luxembourg that I should sell my property and pay the bank back the 650,000 euros they had lost.

“I refused, so in November 2010 Danske Bank issued a foreclosure on my house and also a repossession order through the local court due to take place last month.”

Fortunately for Armstrong, his lawyer Antonio Flores from the Marbella based firm Lawbird – who is also filing eight separate complaints against various Nordic banks on behalf of expats who bought into similar plans – stepped in and obtained a court ruling suspending the repossession.

According to Flores it is actually illegal to indebt yourself in order to reduce your inheritance tax liability, but there are likely hundreds of people who have fallen victim to this scheme.

“This type of product, peddled by unauthorised agents under the auspices of supposedly reputable banks to mostly British pensioners, is becoming more and more common and should be avoided at all costs,” he explained.

And Armstrong added: “The Judge in Coin Court has accepted that the charges of criminal intent are correct, in spite of their lawyers saying it was not correct as someone else had tried a similar case and lost and had to pay 500.000 euros to Danske Bank, who had lost their money in the same way.”

Armstrong has now been forced to rent out his home and move in with his daughter and resume his former job as a yacht captain in order to raise legal fees.

A spokesman for Danske Bank said: “According to the law we cannot comment on individual customer cases nor questions related to individual customer cases. We have no comment.”

The investigation continues.

 

Scottish expat takes on Denmark’s biggest bank over equity release scheme

August 3rd, 2011
Story by Sean O'Hare | The Telegraph

Danske Bank, Denmark

Denmark’s biggest bank faces a criminal investigation amid claims it offered “illegal” financial products Photo: Francis Dean/Rex Features

Six years on, Mr Armstrong is forced to live with one of his daughters as he prepares to take on the bank that promised so much yet threatens to leave him penniless.

His lawyer is filing eight similar complaints against various Nordic banks on behalf of expats who bought into equity release plans in the false hope that they could avoid inheritance tax and enjoy a salary for life. He believes the true number of victims could run into the hundreds.

Scottish-born Mr Armstrong, aware that his daughters would eventually be liable to pay Spain’s top rate of 34 per cent inheritance tax on the €2 million home he owned outright in Malaga, sought the advice of an independent financial advisor known to advise British expat pensioners living on the coast.

The advisor, who was allegedly unauthorised to sell financial products in Spain, suggested Danske Bank’s Capital Assurance product as a means to reduce liability and introduced him to the local Danske Bank branch in Mijas. He too faces possible criminal investigations.

Mr Armstrong alleges that he was assured by no less than three Danske Bank employees that taking out a €1 million Danske Bank mortgage loan against his home and effectively indebting himself would reduce his daughters’ inheritance tax liability by half.

It was agreed that €850,000 would be used by Danske Bank to invest and the profits used to pay off the mortgage, while a €150,000 lump sum would be given to Mr Armstrong as equity release.

According to Mr Armstrong’s lawyer Antonio Flores from Lawbird Legal Services , it is illegal to indebt yourself in order to reduce your inheritance tax liability.

He said: “This type of product, peddled by unauthorised agents under the auspices of supposedly reputable banks to mostly British pensioners, is becoming more and more common and should be avoided at all costs.”

The Danske bank mortgage loan of €850,000, Mr Armstrong was told, would be invested in bonds, Swiss Francs and Euros.

Mr Armstrong said: “After the first year I realised that they had lost me £18,000. For the next five years Danske Bank continued to lose money and in 2009 I was told by an account manager for Danske Bank in Luxembourg that I should sell my property and pay the bank back the €650,000 they had lost.

“I refused, so in November 2010 Danske Bank issued a foreclosure on my house and also a repossession order through the local court due to take place last month.”

Fortunately for Mr Armstrong, his lawyer obtained a court ruling suspending the reposession following the lodging of criminal complaints against the bank and its staff.

Mr Armstrong has now been forced to rent out his home and resume his former job as a yacht captain in order to raise legal fees.

A spokeman for Danske Bank said: “According to the law we cannot comment on individual customer cases nor questions related to individual customer cases. We have no comment.”

The investigation continues.

 

 

Darragh MacAnthony tells critics to blog off

June 8th, 2011
Story by NICK SOMMERLAD | mirror.co.uk

Darragh MacAnthony-18.11.09.jpg

The war of words between the overseas property firm run by Peterborough United chairman Darragh MacAnthony and its unhappy clients has just gone nuclear.

MacAnthony Realty International sold homes and furniture packages across the world from Bulgaria to Florida, but complaints range from swimming pools not existing to apartments not even being built.

MRI responded by bringing in libel lawyers Carter-Ruck to target customers making what it called “unjustified attacks”.

Now MacAnthony has responded with an astonishing blog to reports that 51 British and Irish customers, represented by lawyer Antonio Flores, hope to take legal action against him in Madrid.

“If you Google my name, it appears I am about as popular as Osama bin Laden or Gaddafi,” MacAnthony writes.

Then he launches into Flores, saying the lawyer tried to “get MRI clients excited and hire his services and put a few quid in his pocket”. Flores says the blog is defamatory, adding: “We have got 51 clients who claim they have lost money, MacAnthony should address his response to them.”

Back to the blog: “No doubt I will have to spend thousands of pounds on legal fees over this and for what, may I ask? Running a company as best I can in difficult times and having to do what many others have had to over the last few years – move on, sell up or liquidate, leaving behind creditors who won’t get their funds back for a mixture of reasons.

“I operated a company which did thousands… of sales around the world with many happy clients, but will forever be haunted by the few hundred for which it didn’t work out as planned.”

Oh well, if it’s only a few hundred.

A spokesperson for the MRI Support Group (www.mri-sg.org) said: “This is the beginning of getting justice for all the people that have been misled and had their hopes, dreams and health shattered because of MRI. This is just the first of a variety of legal actions to be filed against MRI and its related companies, we cannot not let them get away with treating ordinary people as cash cows without a fight”.

Last year Northern Ireland MP Sammy Wilson tabled a House of Commons motion describing MRI or related companies as a property fraud.

In 2008, as a result of complaints against MRI, a tribunal held by the National Federation of Property Professionals said it was “appalled to hear of the company’s misleading business practices”. It issued fines of £5,000 and MacAnthony resigned his membership of the Federation.

 

Court case causes Peterborough United chairman pain in Spain

June 8th, 2011
Story by Matt Scott | The Guardian
  • Darragh MacAnthony subject of fraud claim in Madrid
  • Conviction could force chairman out of football
The Peterborough United chairman, Darragh MacAnthony, left, with the club’s director of football, Barry Fry. Photograph: Chris Radburn/PA Wire/Press Association Images

Peterborough United’s chairman, Darragh MacAnthony, is the subject of a €600,000 (£535,000) fraud claim in a Madrid court. The case relates to allegations that MacAnthony withheld funds paid to his firm, MacAnthony Realty International, for buying furniture without delivering the goods.

“I have never broken the law, committed fraud or any crime, nor have I ever been spoken to by the SFO [Serious Fraud Office] or arrested,” MacAnthony wrote on his blog in response to the claim. MacAnthony said Antonio Flores, the English-trained Spanish lawyer who is representing the class action of 51 claimants against the Posh owner, is an “ambulance chaser”.

Flores said: “He’ll try and discredit anyone who stands against him. MacAnthony is a master manipulator. It’s quite simple: if he pays the outstanding sum we’ll settle.”

MacAnthony said that in the event of a successful claim against him, Flores has raised the prospect of “go[ing] after assets I have such as Peterborough United”.

Perhaps a more important outcome of a conviction against MacAnthony would be his disqualification from holding a boardroom position or from owning Peterborough under the Football League’s owners and directors test.

The club that Darren Ferguson steered back into the Championship through the play-offs last season would suffer serious financial difficulties upon the departure of its benefactor. According to its most recent accounts, Peterborough’s net debts stand at almost £9m.

 

Holiday homes bosses accused of huge swindle

June 6th, 2011
Story by FERGAL MACERLEAN | Mail Online

The founder and top executives behind former holiday home giant MRI face legal action in Spain after hundreds of Britons allegedly lost money estimated to amount to £13million.

Dubliner Darragh MacAnthony, who owns Peterborough Football Club, which has just won promotion to the Championship, set up MacAnthony Realty International (MRI) in Marbella as the Millennium began.

Hugely popular on the British market, MRI boasted a £100 million annual turnover before the credit crunch. As well as property development in Spain, MRI marketed villas and apartments in Morocco, Bulgaria and Cape Verde, where the company also arranged furniture supplies.

But now MacAnthony, 35, and his former joint chief executives, Michael Liggan and Dominic Pickering, have been accused of ‘theft by swindle and misappropriation of funds’ in a claim filed in Madrid by 60 British and Irish claimants who say they lost more than half a million pounds in undelivered furniture five years ago.

Lawyer Antonio Flores of Marbella- based property solicitors Lawbird, accused MacAnthony of failing in an obligation to file for insolvency for his Spanish companies.

MacAnthony and his former chief executives have consistently denied any wrongdoing. In relation to the forthcoming claim, MacAnthony, speaking from the US, said: ‘There are no foundations behind these allegations. I certainly didn’t do anything wrong and neither did anyone with MRI when I was there.’

The allegations made in Spain follow what Northern Ireland MP Sammy Wilson described in the House of Commons last year as a property fraud where MRI, or related companies such as MRI Overseas Property, acted as the developer.

The company used programmes on the Property TV Channel hosted by MacAnthony’s younger sister, Wendy, to market holiday homes.

In 2008, as a result of complaints against MRI, a tribunal held by the National Federation of Property Professionals said it was ‘appalled to hear of the company’s misleading business practices’. It issued fines of £5,000 and MacAnthony resigned his membership of the Federation.

Prompted by complaints from British customers, the Serious Fraud Office looked into MRI but took no action. However, it sent alleged victims a letter which said that although it did not intend to prosecute anyone, this did not mean that an offence had not been committed elsewhere.

The Costa del Sol property empire has all but vanished. An investigation traced MRI companies to an empty office in Madrid.

Documents show that last October MacAnthony and Pickering, as directors, handed MRI Overseas Property Group to a Peruvian company, under the directorship of octogenarian Fernando Arespacochaga, which appears to have never traded.

John and Muriel Andrews from Ballycarry, Co Antrim, paid £26,000 for a furniture pack in 2006, but Mr Andrews said: ‘We as yet have received no furniture, no offer of a refund, no apology.’

Darragh MacAnthony faces court in Spain

June 6th, 2011
The Olive Press

DOZENS of expats have filed a case against Irish real estate owner Darragh MacAnthony.

The property mogul behind former holiday home giant MacAnthony Realty International (MRI) now faces legal action for ‘theft by swindle and misappropriation of funds.’

It comes after 51 British and Irish victims – who claim they lost more than half a million euros in undelivered furniture five years ago – filed a claim in Madrid.

They accuse MacAnthony, 35, of keeping 600,000 euros which they had paid him from his base in Marbella for furniture packages for homes in Bulgaria, Turkey and Morocco.

Lawyer Antonio Flores of Marbella- based property solicitors Lawbird, also accused MacAnthony of failing in an obligation to file for insolvency for his Spanish companies.

But MacAnthony and his former chief executives Michael Liggan and Dominic Pickering who also face action, have consistently denied any wrongdoing.

In a long response to the allegations posted on his website MacAnthony – who owns Peterborough Football Club – quipped he was ‘as popular as Osama Bin Laden or Gadaffi’ on Google.

He added: “I am fed up with constant unfounded allegations, lawsuits and blackmail.”

MRI’s head office shut in Marbella last year and sources told the Olive Press that MacAnthony – who once had huge billboards up and down the Costa del Sol – was planning to relocate to the US.

Investigators have discovered his company MRI Overseas is now owned by a 90-year-old Peruvian

 

Now Spain Gets Tough on Second Home Owners

May 29th, 2011
Story by Alexandra Goss | The Sunday Times

Britons caught in valuations trap, reports Alexandra Goss

BRITISH residents who have sold holiday homes in Spain are being stung for extra tax — simply because they have fallen victim to plunging property values.

When a non-resident sells property in Spain, the buyer is obliged to retain 3% of the price and pay it to the tax authorities to cover the vendor’s tax liabilities.

However, the cash-strapped Spanish authorities are entitled to set a higher value on a sale if they judge the declaration to be below market price — and will chase the vendor back in Britain if they think they have underpaid.

Lawyers said these values are historic and take no account of plummeting property prices. The Bank of Spain’s official data says house prices have fallen about 20% since 2007 but many experts believe the market is much worse. Estate agents say prices have fallen up to 50% in certain areas of the country.

As a result, Britons who are forced to sell properties below their “official” valuation are being chased for additional tax bills months, or sometimes years, after selling up.

Chris Snowdowne, 59, a reader from Berkhamsted, Hertfordshire, sold his property near Palma, Majorca, for €500,000 in 2009, having paid a similar amount for it four years earlier.

He paid €15,000 for the “retention” tax but, as he believed he had paid all tax due, later asked his lawyer to get a refund from the Spanish authorities.

Snowdowne said: “The lawyer came back saying the authorities had assessed the property and found it to be worth close to €800,000. I was therefore landed with a capital gains tax bill of €39,000 — on top of the €15,000 I had already paid. [Non-residents are taxed at 19% on capital gains.]” Snowdowne is appealing through the Spanish courts.

Mark Stucklin at Spanish Property Insight, a property website, said: “This type of case is widespread. The retention tax came about because it was common in Spain for people to declare a lower price to the tax office than they sold for to reduce their capital gains tax bill.”

Antonio Flores, a lawyer at Lawbird Legal Services in Malaga, said he was seeing dozens of such cases. He said: “Unfortunately, the only way to fight this is through the Spanish administrative courts, which means you will have to pay legal fees.

“Non-residents should appeal against the demand, requesting an independent valuation of the property.”

If you are looking to sell a Spanish property and want to be sure the sale price is not below the value held by the authorities, Flores said you could request a binding valuation from your local tax office. You should therefore not be sanctioned if you sell above or equal to this value.

However, if you sell below the assessed valuation you would be held liable to pay extra tax.

Stucklin added: “If you don’t hear from the Spanish authorities within four years of paying your last tax bill you know you’re safe as that is the legal deadline for them to take action.”