Silverpoint Cases: What is Happening?

Although Inside Timeshare has been off-line for a while we have been keeping tabs on what is happening, especially the questions and comments sent into this publication and our Facebook pages. One theme which keeps on cropping up is Silverpoint and the total misinformation being given out by some of the more dubious cold-calling “claims companies”. These calls are causing a lot of concern among those who have cases in court with genuine law firms, the gist of the calls is to sow doubt into their minds that their lawyers are not doing their job and are just out to “scam” their clients. This cannot be further from the truth as you will see.

During these dubious cold-calls, the “client” is told a series of untruths, for those who have cases pending, which as we do know is not a quick process for a trial date to be set, the inference is that the clients lawyers are not doing anything, that the “cold-calling” company can get it done quicker.

We have been told by our readers the time scale these callers are using is a matter of 6 weeks to get the case into court, the trial conducted, and within a few weeks of the trial, payment will be made.

As we know, this is impossible, not just in Spain but in all countries including the UK, there are legal procedures which need to be conducted first. This is the simplified version for cases in Spain.

The documents first need to be translated into Spanish, then the case has to be prepared by the lawyers. These are not quick and can take a couple of months depending on the complexity of the case, the amount of documents, and of course the workloads of the translators and lawyers.

Then the case is presented to the court, at this point the defending party (timeshare company) is informed by burofax and has around 30 days to submit their case as to why the trial should not be held. Again, the timeshare companies will delay this for as long as possible and the arguments for and against can go on for a long time before the judge decides to accept the case.

Once this is done, then we can move on to the pretrial stage, again this is a formality, it is the last chance for a settlement to be made out of court and for the judge to decide either to issue a sentence or send the case for a full trial. If the case is dealt with at the pretrial stage as we have seen with Anfi, the timeshare company will immediately file an appeal.

Even once the case goes to a full trial which could be at least 6 months from the pretrial, and the timeshare company is found guilty, then they automatically have a right to appeal to the High Court. Again this can take anything from 6 months to 18 months to be heard depending on the court and the caseloads.

The other cause for concern is for those who have had cases won at the full trial stage and at appeal with the court awarding repayment of the purchase price. At this point, the lawyers will place a “provisional order of execution” to ensure that the funds are secured. This is standard for most cases, unfortunately, a spanner has been placed into the works when it comes to Silverpoint.

According to the many cold-callers doubt is being placed on the client’s genuine lawyers with claims that they can get the money paid out within weeks, again a total untruth especially with Silverpoint. The reason nothing can be paid out at present is the process of liquidating the company has not been concluded.

At present no one knows when payment is likely to happen, the reasons are very simple. First, the court-appointed administrator has to identify all creditors, he has to identify all accounts and investigate the movement of funds. Now considering the complexity of the company structure of the Limora Group which is the parent company of Silverpoint, there are so many accounts that the money has been spirited too, it is a full-time job.

As you can see from the company chart below and in PDF format, these companies have varying jurisdictions in some of the tax havens around the world. It is also a fact that the Limora Group also filed for bankruptcy in the Court of Southern New York. (See PDF below).

The movement of assets is also being conducted by the State Prosecutors Office of Tenerife, this is a criminal investigation and crosses many borders and jurisdictions. Again it is a complex investigation so is not likely to be concluded quickly.

Back in June 2019, Inside Timeshare published a six-part article titled Exclusive Breaking News: The Truth Behind Silverpoint Exposed. This series focused on the reasons behind the liquidations of the many companies which are part of the Limora Group, but also highlights the complexities the investigators are having to deal with. Links to the articles are below.

All Inside Timeshare can say to our readers who are concerned about what they are being told by the cold callers and the doubts that are being placed into their minds, is very simple, do not believe them. They are trying to influence you into signing up with them (for a huge fee) and canceling with your lawyers or law firm. This can have dire consequences for your case, once you cancel and your lawyers withdraw the case as they no longer represent you, that is that, it cannot be re-submitted to the court.

As far as the courts are concerned you have withdrawn the case, the defending party walks free and then has the right to demand that you pay their legal costs as they will file that the case was frivolous. You will also not have any claim against your lawyers or law firm for a refund of your legal fees, after all, they were doing what you paid them for, and it is you who withdrew the case.

On this point, Inside Timeshare received some time ago an email from one reader who fell for this and is now in yet another legal battle against the demands by the timeshare company for their legal fees to be paid by the client. They have now lost the money they paid to bring the case, the money paid to the “scam” company, and the new legal fees to fight the case. They have also lost out on ever getting their purchase price back and are still liable for the annual maintenance fees.

Our advice is to always contact your lawyer or law firm directly when being told any information which puts any doubt in your mind.

The Silverpoint case is one of the most complex seen in timeshare and is not going to be concluded in the timescales being given by these companies. Inside Timeshare very much doubts if this case will be concluded this year and until all investigations are concluded even those who have been accepted as “creditors” by the administrator are not likely to receive their awards.

If you have any questions or comments on this article, please use our contact page and Inside Timeshare will get back to you.

Links to the six-part article on Silverpoint liquidations

One Comments

  • Susan Mallendine

    July 7, 2021

    Hi Charles, how are you, hope your well, after your Tay in hospital.
    Charles, I wonder if you can clear something up for me. I have never received confirmation that my Timeshares that CLA are dealing with have ever been closed, and I have heard that until they are, there cannot be a Claim put against Silverpoint. Should I have had confirmation that this has happened
    Kind Regards


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