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IFA

Breaking News: Prosecutors Office Denounces Anfi

Further to our article about the Anfi partner IFA’s AGM published on 22 July 2019, in this article, it was revealed that IFA was subject to questions regarding all the court cases, the possible cost to IFA and what it would mean to shareholders. The article also explained how IFA is being denied any influence or information on the running of Anfi by their partners Santana Cazorla who owns the “Golden Share”. Today’s article brings in a new dimension to the tale.

The newspaper El Diario has published that The Provincial Prosecutor’s Office of Las Palmas has now filed two complaints against two of the Anfi Group Companies, Anfi Resorts and Anfi Sales. The nature of the denuncias is for hiding assets in order to avoid seizures of money in the execution of sentences issued by the courts against Anfi Group for the numerous infringements of the law in the sales of their timeshare product.

Link to the full report published by El Diario 26 July 2019. (To translate from Spanish open in google and right-click on the article selecting translate)

https://www.eldiario.es/canariasahora/tribunales/Fiscalia-denuncia-Anfi-ocultar-embargos_0_924258398.html?fbclid=IwAR2RFYXoewmBTTWBITZLZcXgTe-nSnEmsBgkz04DVFTqzrXm9czh6dqsx5Y

On 12 July, the Prosecutor Elena Herra signed the papers that send the investigative proceedings opened in January to the Court of San Bartolomé de Tirajana. This follows denunciations by two lawyers Eva González of Canarian Legal Alliance and Miguel Rodriguez Ceballos (formerly of CLA) on behalf of clients following Anfi’s failure to pay the court awarded amounts to the clients by enforcing embargos.

This process is being initiated in all cases and given the refusal of the Anfi Group to comply and voluntarily pay as requested by the courts, the court has demanded a list of all assets in order to embargo and seize the assets.

It is also alleged that since 2014 to the present millions of euros have disappeared from these current accounts with the balances being practically zero. This is despite the fact the activity of the selling of timeshare at Anfi has neither ceased or decreased as stated in the annual statements of the Anfi Group.

The information has revealed that Anfi Resorts and Anfi Sales accumulated more than 13 million euros in sales one month before the Supreme Court made its first-ever ruling establishing that no contract was to be sold for a duration of more than 50 years (Law 42/98). By December 2017 those 13 million euros had been reduced to 400,000€ and that figure has decreased even further within the last 18 months.

In this specific case, five examples of cases in which Anfi have failed to pay on sentences issued by the courts between 2017 and 2018, some of these are for sums in excess of 200,000 euros. This is despite the fact that there are in existence orders and decrees that urge the company to comply with the execution of sentences under severe penalties for serious disobedience.

The Prosecutors Office has requested that preliminary proceedings be opened in the courts regarding these facts and that the legal representatives of Anfi Sales and Anfi Resorts, members of the boards of directors for both companies in 2018, persons responsible for services be investigated as legal entities and the person responsible provide the relationship of the assets to the courts.


Court of San Bartolomé de Tirajana, Maspalomas, Gran Canaria

A second article was also published by El Diario on 28 July, in this article, it was announced that lawyers from Canarian Legal Alliance on behalf of their clients have filed for a court administrator to be appointed to oversee the accounts.

According to El Diario Anfi stopped the first of three applications to the court by immediately settling with the clients and paying them what they were due. However, in the case of other clients, the court has already convened for September to try and reach an agreement to pay them if this is not settled the court will activate the option of the Judicial Administrator and embargo the accounts.

This leaves Anfi in a very precarious position as the emptying of accounts to avoid payment could lead to criminal action against the companies and the responsible persons involved. It leaves us in no doubt that the courts are taking this matter very seriously.

Link to the second article published by El Diario.

https://www.eldiario.es/canariasahora/tribunales/Anfi-Timesharing-Condenas-Justicia-Deudas_0_922158442.html

For those clients with cases yet to be heard or waiting for sentences to be issued this is very good news indeed as it will set a precedent and will lead to quicker payments as ordered.

Inside Timeshare will be watching this latest development very closely and will publish any further news when it comes in.

Anfi: More Serious Problems Emerge

Over the past few years, Anfi has been in the news for many reasons, the main ones are the number of cases they have been losing in the courts and the Tauro Beach Project. The project at Tauro beach has also recently been in the news with the former head of the Coastal Authority being sentenced to 3 years in jail. He was found guilty of falsifying documents giving permission for Anfi to carry out the work in establishing a man-made beach months before the permissions were signed. The Canarian Government is in the process of revoking the permissions and licenses allowing Anfi to develop Tauro Beach, this will be a devastating blow to their finances. As for the court cases, there seems to be no sign that these will be ending anytime soon.

Tauro Beach Project, man-made beach, new hotels and commercial centre planned.

All this must be having some effect on the Anfi cash flow, we know they are employing delaying tactics in paying clients what the courts have ordered. It is believed that in many cases it is transferring funds from one account to another, rather like Silverpoint. We also know the Canarian Government is in the process of revoking the permissions and licenses allowing Anfi to develop Tauro Beach, this will also be a devastating blow to their finances. 

Is this an attempt to hide the money and not pay what they are legally obliged to pay claiming cash flow problems?

Or are they actually running out of money?

Where does this leave IFA as 50% shareholders, as they have no control over the board or the company?

Are IFA aware of what Anfi are doing?

The courts are taking a very dim view of Anfi tactics, they have already seen through them, a very good case in point is the one regarding a Norwegian client of Canarian Legal Alliance, Mr Hoyer. Due to the delays and arguments by Anfi on his case, he was awarded 100,000€ above the 31,000€ he originally paid giving him 131,000€. This was the court’s way of punishing Anfi for basically wasting the courts time.


Mr Hoyer one happy Norwegian client

Highlight and right click on link below for the full report

This was a very expensive case for Anfi, yet, they are still attempting to do the same thing with every case that goes before the courts. Obviously, the courts are not too pleased with this and investigations have been ordered by the Fiscal (State Prosecutor) into Anfi funds and bank accounts.

This is not the first time we have reported on “missing funds” we know that between 2012 and 2013 8 Million Euros had been diverted which was noticed by the Lyng family, then only last year in November we reported on a lawsuit between the Cazorla Brothers for unfair administration of funds, to the value of 718,000€ the  result of the case has still yet to be issued. (see links below).

https://insidetimeshare.com/the-great-anfi-battle-of-the-partners-round-2/

https://insidetimeshare.com/la-provincia-anfi-director-declares-lawsuit-between-cazorla-brothers/

The delaying tactics Anfi are employing are constant appeals to the High Court and lodging appeals with the Supreme Court, this is due only to a lack of liquidity or cash flow even taking into account the fines and interest they will accrue. It is also very frustrating to the clients with cases already won in the Courts of First Instance, it is also being used as a ploy by Anfi to put people off taking legal action.

Another method which Anfi are employing to ward off future lawsuits from disgruntled members is the attempt to change contracts, they have so far tried twice to convince members to change, but this has resulted in a very poor response. What we do know is that with all the legal problems members are very concerned with the future of Anfi.

https://www.finanzen.net/aktien/ifa_hoteltouristik-aktie

We now look at IFA as 50% shareholders, they do not have the “golden share” so they have no control over the board or the company,  we know that IFA has set aside millions for a full takeover of Anfi, but are they actually aware of what is going on. It is more than likely that Anfi has not even disclosed this matter with IFA. IFA is a public company and is therefore responsible to have this disclosed to its shareholders, the question is if they are aware, have their shareholders been notified?

Inside Timeshare has spoken to an IFA shareholder and in the last quarterly report, there was no mention of the possible millions in losses. So it would seem that IFA shareholders are also being kept in the dark.

IFA Faro, Maspalomas

Are the IFA shareholders aware that there are around 50 million euros in claims pending against Anfi?

How is this going to affect IFA if they do eventually take full control, will they continue in the same way or will they settle the claims in the quickest way possible?

All we know at the moment is Anfi are moving funds around the different bank accounts, to us it looks like what is happening with Silverpoint, using the transfer of funds to other parts of the company to hide the money and eventually seek liquidation due to “cash flow” problems.

Unfortunately, there are more questions than answers, answers that Inside Timeshare will be looking for and publishing on these pages.

If you have purchased any Anfi product and want to know if your contract contravenes Spanish timeshare law giving you a valid case and you would like to secure your “investment”, then use our contact page. Inside Timeshare will help you find out your legal position and point you in the right direction.

More from across the Pond: Information from the NTOA.

Gregory Crist the CEO of the NTOA (National Timeshare Owners Association), will be making a presentation at the TBMA (Timeshare Board Members Association) in Tucson AZ, on 16 to 18 October.

tbma

The presentation will be about Combating Fraud in the Changing Timeshare Environment, this is an area which affects timeshare owners worldwide, from dubious resale companies to false claims and law firms. In the USA there is a very severe problem of as he puts it “bad actors” who are taking advantage of owners and severely damaging the reputation of the entire secondary market (resale).

 

He states that these fraudulent companies who operate what is commonly called the “Viking Ship” programme, cause considerable harm to owners and resort associations alike. Regulators have been attempting to close down fraudulent transfer and resale companies who use unfair and deceptive trade practises, but Greg believes there is a great need for owner education and consumer protection.

tbma-1

 

 

 

On another matter, Greg also informed Inside Timeshare of a Senator who managed to block a bill which would have restricted owners access to HOA (Home Owners Association) rosters. These are the list of all members who own timeshare and are members of the association.

 

The bill would have made it impossible for the HOA to be able to communicate with other members, which would have had a considerable effect on informing them of board policies and HOA issues.

 

The bill was sponsored by ARDA (American Resort Development Association), and was a means of protecting owner confidentiality. In other words stopping a legitimate use of these lists thereby controlling any form of owners coming together for the common good.

 

According to ARDA this bill was to protect owners from predatory rogue transfer and resale companies. It transpires that ARDA did not even show any evidence that these rosters had ever been sold or misused.

arda

Again this is a blatant abuse by the industry to prevent any dissemination of information which would be of use to owners. This is not just a problem in the US, we also have the same problem in Europe, whereby information is hidden or denied. Only recently we have found that one resort, Anfi, is contacting owners and denying any buyout of the Lyng family shares by IFA Lopesan and also denying any legal action being taken against them. All this even though it has been widely circulated in the European press. (Search Anfi for previous posts).

 

For the full articles see the PDF below.

more-from-greg-crist-at-the-ntoa

Once again a very big thank you to Greg and Irene for all the information they pass on, it is through collaboration that we all can find out what is going on. Without this we will be kept in the dark, it also helps to see what “scams” and other “schemes” may just be lying in wait, after all what happens here may happen there next year and vise versa.