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Ali Farhoud

Update: Silverpoint, Nordic Consulting and the Farhouds

So here we are again, with more information supplied by our readers on the link between Silverpoint Vacations and the Farhoud Brothers, today we highlight a case a client who purchased and “apartment” via the “Company Participation Scheme” from the Silverpoint salesman, Alex Farhoud.

As we know he no longer works for Silverpoint but is a consultant for his brother’s company Nordic Consulting Canary Islands SL, who are now making more money from the very people they sold the scheme to in the first place, this time through dubious legal action against their former employer Silverpoint and Mark Cushway.

Mark Cushway

It all began with a visit to Tenerife in 2017 and a subsequent invitation for a return visit with discounted air fares and two week stay at Beverly Hills Club. The only “condition” was they would have to attend an “information” meeting with Silverpoint.

Once they arrived they were contacted by the Silverpoint representative Alex Farhoud. They attended the arranged meeting and were greeted by the friendly Alex. He began in the time honoured timeshare “warm up”, enquiring into their health, how they are enjoying their stay and giving information on the variety of restaurants, trips and attraction that Tenerife had to offer. All designed to put them at ease.

Alex Farhoud

Eventually the conversation switched to a proposal which would be of great interest and benefit to the client, namely how they could purchase an apartment at Beverly Hills Club well below the market value, this equated to about 60% less.

He went on to explain that they would be able to use the apartment for up to half of the year and for the rest rent it out for a considerable income. Although they would have to wait a few years they would receive “compensation” of 4.5% of the the purchase price, around 155,000€

Alex Farhoud explained the business structure with the aid of the tried and trusted “pencil pitch”, (of which Inside Timeshare has a copy).  It shows the workings of the 4.5%, which would equate to 6,975€ which they would receive in the first year as compensation of forthcoming rental income.

This forthcoming rental, was also shown on the hand written “pitch” and showed the proposed income of 21,623.51€, although the amount was actually shown in Swedish Kroner. There would also be a 19% tax deducted from the amount to be paid to the Spanish Tax Authority. This note does have Alex Farhouds name on it.

For the purchase to go ahead a deposit of 5,000€ was payable at that time with the balance of 150,000€ within the next couple of months.

As they had received so much information it was proposed that they would return the following day after looking over the paperwork.

They obviously had many questions they wanted answers to.

According to the paperwork, they would not receive “title” to the property until all the “timeshares” had been freed from their owners, a process that would take approximately 3 years. The paperwork also stated that they were not purchasing “timeshare”.

To cut a very long story short, it seemed like a good deal, Alex Farhoud then contacted Mark Cushway to approve the deal.

Moving on to 2018 early 2018, Alex Farhoud makes contact with an important announcement, problems had arisen with the lease. He also announce that he had parted company with Silverpoint, but did not elaborate if he resigned or was dismissed. Now that he was an independent agent he would be able to restore the original terms of the Rental Program Agreement, but this would entail a payment of 2 x 5,000€, paid in two instalments.

It would also appear other “buyers” had received similar information.

Nordic Consulting Canary Islands SL

Step in Nordic Consulting, as we have stated the CEO is Ali Farhoud, Alex Farhoud is the consultant. They announced they had “found illegalities” in the agreements, that what they had purchased was “timeshare”, which as we know is subject to some very strict laws in Spain.

Ali Farhoud

Nordic Consulting explained they had already taken several cases to court where the contracts were cancelled with the client receiving back full payment. They proposed that they would take on the case and help this purchaser. The cost would be over 30,000€ to be paid to Nordic Consulting.

So now we have the very people who sold the scheme in the beginning, making what must have been large amounts of money in “commissions”, contacting the very people they sold it to, claiming they had no idea it was “illegal” at the time. Now making more money from the very same people!

From information received, several formal criminal denuncias have been made against them, with apparently more in process of being filed.

We don’t know about you, but it does appear to us that something is very wrong that these brothers who sold the timeshare and the participations scheme on behalf of Mark Cushway for many years are able to operate in this way.

Have you been sold Timeshare with the promise of resale and rental, the Company Participation Scheme or the Overseas Lodging Participation Programme, including by those named here?

If so, use our contact page, let us know what you have purchased, Inside Timeshare will get back to you with information on where you stand and what is open to you on the legal front. Whether you are from the UK, Scandinavia, or any other European country, we can point you in the best direction.

Nordic Consulting, Company Participations: More Readers Send Information as a Warning

Further to our previous articles on the Silverpoint Participations and Nordic Consulting Canary Islands SL, today we publish the experiences of one reader from Scandinavia, taken from the many enquiries received in the past two days. It explains how he was sold the these “participations” and has since been contacted by Ali Farhoud from Nordic Consulting. We have slightly changed certain details to keep the identity of our reader private.

Back in 2017, our reader attended a meeting with Silverpoint Vacations, the representative was Alex Farhoud, another brother of Ali. The scheme was explained to him and he was led to believe that he was buying a specific apartment at Beverly Hills Heights, part of the agreement was that he would receive an income from the rental of the said apartment and eventually be able to sell.

After some time, he eventually signed the contract and parted with over 150,000€, along with the purchase contract was a rental contract with Silverpoint Vacations, as we know the CEO is Mark Cushway, who is no stranger to these pages. The client left in the belief that he had a good deal.

Then in 2018, Alex Farhoud made contact, our reader was informed that the rental contract had been cancelled and new less favourable conditions had been presented. In order to fix this Alex Farhoud demanded a further 10,000€ fee. Our reader fearing the loss of his “investment” duly paid. The new rental contract was with Excel Hotels and Resorts. He received an outline of the new rental contract, which to some extent the original conditions that they had initially agreed to.

Nearly a year later he was once again contacted by Alex Farhoud, this time it was stated that the purchase contract they our reader had signed was not valid. The reason being he could not get a title for a product that was essentially made up of timeshares!

Enter Nordic Consulting and Ali Farhoud, Alex Farhoud referred our reader to this company with the proposal that Nordic Consulting would instigate legal proceedings to have the contract with Silverpoint nullified, plus claiming back what they had initially paid, but in double. Obviously there was going to be a fee for this, that was estimated at over 30,000€. Our reader has had repeated calls from both brother to pay and get the process initiated. But our reader has not done so, one reason is that he has received no explanations or clarification in writing.

Our reader has also received a letter from Mark Cushway and Silverpoint informing him that the process of obtaining title was moving on and that all units had been cleared of timeshare owners. Apparently a “certificate” confirming that all 52 weeks in the unit purchased were clear. Our reader would then be called to Tenerife to sign the title.

Our reader is now so confused, can he believe or trust Silverpoint?

Can he trust Nordic Consulting, his brothers company, especially as it was Alex Farhoud who sold him the product in the first place?

This is why our reader turned to Inside Timeshare, he had nowhere else to turn, he didn’t know who to trust. After lengthy discussions we made a recommendation and our reader is now discussing his options with a leading law firm in this field. It will be sometime before we will be able to give you an outcome, but we are sure that his problem will be resolved to his satisfaction.

Have you had dealings with Silverpoint, either the “investment weeks” or the “company participation scheme”, have you been contacted by Nordic Consulting regarding these?

Have you been contacted by JB Legal / SIM Legal and Jeroen Martijn Brussel, (See article published 28 Jan 19), along with Walker Padron Perez, with a similar story?

If so, get in touch with Inside Timeshare, let us know your experiences so that we can keep these warning going, we will also offer free and impartial advice on what options are open to you.

Consumer Warning: Update (Link added Sunday 10/02/19)

Further information has been received by Inside Timeshare regarding a previous article on the Silverpoint Company Participation Scheme and a company contacting consumers who have purchased this flawed product.

From the information received from an English client, he was sold “participations” in this scheme by none other than Ali Farhoud, this purchase was for over 440,000 Euros.

He received a call from Nordic Consulting Canary Islands SL, (Mr Farhoud’s company), the caller was, yes you guessed it, Ali Farhoud himself. In the call the client was informed by Mr Farhoud, that at the time he was selling this “product” for Silverpoint, he did not know that it was “fraudulent”, (if you can actually believe that).

Also during the call this client was told that Nordic Consulting would take his case to court and get him compensation. The cost, over 21,000 Euros, plus 25% of the awarded amount. This client felt as though he was once again being pressured into parting with huge sums of money, from the very same person who sold him the “product” in the first place.

Needless to say he didn’t fall for it on this occasion, he has decided to take legal action through a respected and experienced law firm.

Now obviously the list of clients who purchased into this “scheme” is in the possession of Nordic Consulting and Mr Farhoud, one does have to wonder how this was obtained?

It is also very obvious that the person who made large amounts of money from selling the “scheme” in the first place is now set to get what is called a “double dip”, in other words making more money out of those who were sold a defective and highly floored product in the first place.

So the warning is very clear, if you receive a call regarding taking legal action against Silverpoint (Farhouds previous employer) by Nordic Consulting, you will be lining the pockets of the one who sold it to you in the beginning.

Below is a transcript from a recorded meeting between Ali Farhoud and one of his duped clients, this was in 2013. It revolves around the “investment” weeks Silverpoint were peddling. These sales are subject to many court cases being brought in Tenerife. It must also be noted that Silverpoint were at this time members of the Trade Body the Resorts Development Organisation (RDO), with the CEO of Silverpoint Mark Cushway also being a director of this organisation.

Just from this transcript alone, Farhouds claim that he had no idea that the “participations” were fraudulent is somewhat flawed. He knew he was selling a “frudulent” product long before the “participations” came on the scene.

We leave it to you the reader to decide.

The link to the transcript since publication has been removed from the TCA website. Although it is still showing on Google search.

Have you purchased into this product and now feel that you have been defrauded?

Do you want to know who you can actually trust to get you your money back and have the contracts declared null and void?

Then use our contact page, Inside Timeshare will go through it with you and point you in the right direction and to the people who can and will do the job. In the end Inside Timeshare will give you the best advice without any obligation and free of charge.

 

Consumer Warning from Canarian Legal Alliance: Silverpoint Company Participations

A warning has been issued by Canarian Legal Alliance to all clients who have purchased the SilverpointCompany Participations” scheme, another twist has now come to light.

It would now appear that clients who purchased into this scheme, which has already resulted in many cases being taken to court, are being contacted by the very people who sold it to them in the first place.

As we know Ali Farhoud and his brother Mike Farhoud were actively selling this scheme, which involves clients paying thousands of euros, in some case upwards of 150,000€, for so-called “participations” (shares) in apartments which are registered as SL companies, along with promises of rental income and eventual sale with a return on the “investment”. (see link below)

http://insidetimeshare.com/mid-week-news/

Clients of CLA have informed them they have been contacted by the Farhoud brothers with the express offer that they will relinquish their contracts, obviously for a hefty fee. This will result in all these clients losing out on their “investments”, leaving them out of pocket by thousands of Euros. The sole purpose is once the contracts are terminated, Silverpoint is then free of the threat of being taken to court by the clients.

Mike Farhoud

 

Now the question is, how are they getting the clients information to contact them?

The answer is very simple, as we stated, if these contracts are terminated, the client then has no recourse to take the case to litigation, so what has Silverpoint to lose by supplying the client information, absolutely nothing, but all to gain, free of the threat of legal action and at the same time making more money through the termination.

At present, there are many cases already at court waiting for trial dates, with many more at CLA lawyers undergoing case preparation. The first case to reach a conclusion, which we reported on these pages in November 2018, Silverpoint and their lawyers admitted to the court that the “Company Participations” were indeed timeshare. Obviously, the whole scheme was to dupe the consumer and circumvent the strict timeshare laws. (see link below)

http://insidetimeshare.com/silverpoint-company-participations-is-timeshare/

According to Canarian Legal Alliance they have only just scraped the tip of the proverbial iceberg, there are still man many clients from all over Europe who have been drawn into this scheme. Most don’t even realise that they have purchased nothing but promises and fresh air.

CLA are once again leading the way, Anja has been researching this scheme for almost 2 years, she is their leading expert of this “product”, if you have purchased into the “Company Participations Scheme”, then for more information contact her on the following number or email address:

+34 616 243 309

[email protected]

 

Mid Week News

Inside Timeshare has received information from one of our readers involving Silverpoint in Tenerife, it is to do with the so-called “Company Participation” scheme they have been selling.

In this scheme, the clients for considerable amounts of money, in many cases in excess of more than 150,000€, clients purchase not shares but “participations” in companies set up to hold “freehold” apartments, which will then be rented out by Excel Resorts. (Allegedly).

Having seen the documents for this scheme, it doesn’t leave much to the imagination that they are not in the best interest of the clients.

This reader has been contacted by Ali Farhoud one of Silverpoints sales people by email, in this he tells the client what we already know, that Excel Resort Management have cancelled the rental contract with Silverpoint.

This does look like Silverpoint are no longer in a position to generate a sufficient rental income to satisfy their contractual promise to their clients who have purchased the participation scheme.

Apparently Mr Farhoud told our reader that he had helped clients sell their apartments with genuine sales companies. But he also added that many companies had said that the apartments with leases concluded with Excel were not saleable.

He has taken on the services of a lawyer, (we wonder if it is the same one Silverpoint use), on behalf of the clients and that the necessary Power of Attorney was being sought from the clients.

Having studied this scheme and reading the documentation, it is Inside Timeshares opinion that extreme caution should be exercised before signing any power of attorney. Do not rely on any lawyer appointed on your behalf, as with any business or property transaction you should always engage your own independent legal advice.

The Court of First Instance No 2, in Maspalomas, Gran Canaria, has just issued the following sentence. Anfi have been ordered to repay one of their clients a total of 70,000€ plus legal interest, with the contract being declared null and void. The infringement of the law in this particular case is the length of the contract, it was one in perpetuity, when the law only allows for a maximum period of 50 years.

If you have any questions or concerns regarding any part of this article, or would like to know where you stand with any product purchased, then use the contact page and get in touch.

Have you been called or found a company on the internet and want to know if they are genuine, then contact Inside Timeshare and we will point you in the right direction.