Browse Tag

Resort Properties

Start the Week: Trouble with the Silverpoint Rental Program Agreement

For sometime Inside Timeshare has been reporting on the “Company Participations and Rental Agreement” sold by Silverpoint. As we already know this product was rolled out to replace the discredited “Investment Weeks” product sold originally By Resort Properties then under the Silverpoint banner, again this product is subject to many court cases which are being found in favour of the clients.

It now appears that Excel Resorts and Hotels SA are distancing themselves from Silverpoint at an alarming rate, we already know that Excel has informed clients of the “Company Participations” that they are no longer working with Silverpoint and this is causing alarm among those who have purchased in this expensive and elaborate product.

The latest news has been coming in over the weekend from many regular readers of Inside Timeshare who have purchased this product, it comes in the form of an email from Excel Resorts and Hotels SA, the company which manages the resorts. Under the agreement entered into with Silverpoint Vacations SL, Excel undertook to operate the assets of the “Company Participations” guaranteeing a return of 4.5% of the corporate income until “apartments” are converted to accommodation units.

So far this year it seems that no one has received any of this income, according to the letter Excel state that “owing to the economic and financial situation” Silverpoint has been unable to honour the agreements during 2018.

In their email, Excel Resorts have stated that they will be calling for an AGM to allow “shareholders” to vote on new contracts and conditions.

Within days they announced a date for the “Shareholders’ Ordinary General Meeting” being held on 12 June 2019 at 9:40 am at the registered office of the company.

The Agenda:

  1. To review and approve, as appropriate, the Company’s Financial Statements relating to the year ended 31 December 2018.
  2. To decide upon the application of the results for the year ended 31 December 2018.
  3. To approve the management of the Company for the year ended 31 December 2018.
  4. The Rental Program Agreement entered into with “Silverpoint Vacations SL” and decisions to be taken on this. Analysis of proposals and contractual alternatives for the holiday rental and decisions to be taken on this. To authorise, where appropriate, the sole director to enter into, on behalf of the Company, the contractual proposal which may ultimately be approved, even if impinging upon the figure of self-contracting, double or multiple representation.

Well, not sure about you but it doesn’t look very promising for those who purchased into this scheme.

For those who are unable to attend excel have also sent forms to sign to allow a proxy to vote on your behalf. Very kind of them, but the named persons are actually employees of the company, so we just wonder who the vote will go in favour of, certainly not the “shareholders”?

It would also appear that assets and funds are being tranferred to many offshore companies and accounts, is this an attempt to hide everything because of the number of court cases, we can reveal that moves are already being made to identify all companies, accounts, persons with significant interest and control.

This has already shown the links to all the companies, which one ownes which, who ownes what and who is ultimately the main character of interest. As they say there is always a paper trail which can be followed.

It has also been revealed that Limora Investments Ltd, a British Virgin Islands-based resort owner on Friday asked a New York bankruptcy court to give Chapter 15 protection to its U.S. assets while it investigates what it called “misconduct” by members of its management team.

From enquiries made it would also appear that this company is very much linked to Excel Resorts and Silverpoint.

The company began insolvency proceedings in the British Virgin Islands in February after discovering “unusual” cash flow problems with the subsidiaries that manage its flagship Spanish properties. Limora has more than 100 subsidiaries with interests in resorts, timeshares, hotels and other businesses in the United Arab Emirates, Spain, the U.K., Singapore, Thailand and the U.S.

The company also stated that its primary source of income is resorts and timeshare in Spain and that in the mid-2018 their Spanish subsidiary had been requesting emergency funding. So along with what we already know about Silverpoint and Excel with Excel Overseas Holdings filing for liquidation, our enquires are just being confirmed.

With what we already know but are unable to publish yet, time is of the essence, especially with the upcoming AGM, we very much doubt that any decision will be infavour of you the clients.

So if you have purchased any product from Silverpoint especially the Company Participations Scheme, or the Excel Overseas Lodging Rental Program and you would like to know how you can get back your “investment” along with having the contract declared null and void, use our contact page and get in touch.

Silverpoint: Company Participations is Timeshare

A few years ago Silverpoint changed their usual “investment” packs  into “The Company Participation Scheme”. This is where the clients are then sold “participations” (not shares), in “registered” companies. These are actually apartments that are registered as companies with names like “Palm Beach 112”, using the names of the resorts along with a number, (possibly the apartment).

Once again like the “investment” weeks the whole point is to dodge the strict timeshare laws, which at first Silverpoint were successful in doing so. They actually fooled the courts in the early days that the purchasers were not buying timeshare but were investing in property. Eventually the Supreme Court ruled that these clients were buying timeshare and were not investors, therefore they had the full protection of the timeshare laws.

Since that first ruling Silverpoint has been on the receiving end of many court cases, almost on a daily basis, with the court’s finding for the clients. This is costing Silverpoint hundreds of thousands of pounds.

In a new and unprecedented case these “Participations” have been shown to be what they are, timeshare by another name, or what we at Inside timeshare would call a “Pig in a Dress”.

Company Participations “Pig in a Dress”

It all revolves around a case brought by Canarian Legal Alliance on behalf of clients at the Juzgado De Primera Instancia No2 in Arona Tenerife, (Court of First Instance), on the 20 November 2018.

In this pre-trial hearing, which is usually a precursor to a full trial, something very extraordinary took place, before the Judge, Dña Lara Etelvina López Jiménez, Silverpoint and their legal team admitted that the “Company Participations” are indeed “TIMESHARE”!

This admission is going to have a very profound effect on all pending cases, it also opens the gates for many more “victims” to come forward and place claims against Silverpoint, not just to be reimbursed with their “INVESTMENT” but also have the contract declared null and void.

Judge Lara Etelvina López Jiménez decided on this admission that there was no need for a full trial to take place and closed the proceedings issuing her judgement and sentence within days of the case.

She ordered that the contract be declared null and void with the return to the client of 81,700€ including legal interest and fees. (Click on the PDF to see the court document).

Silverpoint_Company_Participation_Sentence_1_instance

The client was represented by the CLA Team of lawyer Miguel Ángel Méllian Santana and Procurador Buenaventura Alfonso Gonzalez.

Miguel Ángel Méllian Santana

So what exactly is this “Company Participation”?

Well, it is a rather sophisticated scheme designed as we said to circumvent the timeshare laws, “Participants” purchase a number of participations in the companies, which are actually the apartments registered as companies. The idea is they will receive a “rental” income with a yearly dividend of about 4% of the income rental. They are also should be able after 3 years to “sell” their participations, the only thing as we have found out from one of our readers is that they can only be sold to other participants. One slight problem here, they don’t know who they are and have no way of finding out, but according to our readers information, Silverpoint will approach them with the sale!

Attached to these “participations” are also holiday weeks which the “investor” is able to use, which does put them into the realms of timeshare.

Now as far as the “dividends” are concerned, some have received them in the first couple of years of “investing”, but as we are increasingly finding out most are now way behind on receiving them for this year.

The reason is that Silverpoint and Excel Resorts, who are the managing company of the resorts themselves have had a very severe falling out, with Silverpoint losing all marketing rights. So when these “investors” enquire and complain that they have not received their dividends for this year, they are told by Excel that they are waiting for Silverpoint to pay them.

When the “investor” makes further complaints and threatens legal action, it appears that Excel pays them the dividend, the only thing is it is with the “investors” own money which they have paid for the “participations”. I don’t know about you, but to me this looks like the classic “Ponzi scheme”!

What is a Ponzi Scheme?

Here is a simple explanation.

A Ponzi scheme (/Ponzi/ also a Ponzi game) is a form of fraud which lures investors and pays profits to earlier investors by using funds obtained from more recent investors. Investors may be led to believe that the profits are coming from product sales, or other means, and remain unaware that other investors are the source of profits. A Ponzi scheme is able to maintain the illusion of a sustainable business as long as there continues to be new investors willing to contribute new funds and most of the investors do not demand full repayment and are willing to believe in the non-existent assets that they are purported to own. (It is also known as a Pyramid Scheme).

It is actually named after Charles Ponzi who became notorious for exploiting it in the 1920’s, it also has roots in literature, being used in two Charles Dickens novels Martin Chuzzlewit (1844) and Little Dorrit (1857).

In further developments it has also come to our attention that Diana Aitchison, Chief Operating officer at Silverpoint, has recently parted company with Silverpoint, she is apparently now in the reservations department of Excel Resorts and Hotels.

This does indeed acknowledges a huge split between the two companies, one problem which Excel will have with the move of Diana Aitchison, is the fact that she signed off many of these “participations” for Silverpoint. This along with the fact that Excel is listed as “Sole Administrator” for these “registered” companies indeed shows a legal link which will only help those future cases.

We will bring you further information as we get it, but for now this recent development is going to please many of those who “INVESTED” in this scheme.

Have you been a victim of this or a similar “timeshare” scheme?

Have you been a victim of Resort Properties / Silverpoint and want to know the way forward?

If so use our contact page and let us know, Inside Timeshare will explain what your options are and point you in the right direction. You have rights under Spanish law for redress, don’t lose out on your chance to regain your hard earned money and have the contracts declared null and void.

Start the Week: Exiting Timeshare and the False Promises from Exit Companies

At the end of last week we started our Letter from America with information provided by many of our readers on their attempts to exit or relinquish their timeshare, for many this has proved to be very costly. Many of these readers have given the same account, they paid a company many thousands of pounds to “exit or relinquish” the timeshare, only to find out that 3 years down the line they are not out and now owe thousands in maintenance arrears. Many are also facing court action by debt collection agencies.

In many cases it all starts with a cold call, in others the timeshare owner is seeking help and has either found the company on the internet or has been recommended by one of the so-called independent timeshare consumer advice sites. Many of these companies pose as law firms, paralegals and experts in timeshare exit, all to fool you the timeshare owner.

The initial offer is to get you “compensation” for being mis-sold, all on a no win no fee basis, but this is just the bait, before this can go ahead you first need to have the contract cancelled. Unfortunately this is what they are actually after and it does entail a payment upfront, in some cases upto £10,000!

So how is the “exit or relinquishment” processed?

Very simply it isn’t, the company will send a “unilateral letter of cancelation” or “exit notification letter”, all this means is that you have stated your intention to withdraw your membership. Along with this letter the owner is then told not to pay anymore maintenance, if the timeshare company sends an invoice for maintenance, just ignore it, you are out!

Eventually, as has happened to many of our readers who have sent in emails, they are now being bombarded with notices of huge sums in arrears, with the threat of being taken to county court for a debt. The timeshare company itself does not take the “debtor” to court, it is passed to a debt collection agency who do the legal stuff on behalf of their client, the timeshare company. One of the main companies that deal with this field is Daniels Silverman, who have a reputation for always getting paid.

As far as the timeshare company is concerned, you are still a member / owner and are liable for the maintenance, they have never accepted the letter of exit from the company that was paid to “exit” you from your timeshare. As we have stated in many previous articles, the timeshare companies do not accept or deal with theses “exit or relinquishment” companies, they will only deal with the member direct. They have their own systems in place for dealing with a cancellation, subject to certain conditions.

Have you paid a company for the cancellation of your timeshare and are now receiving demands for maintenance arrears with threats of legal action, if so use our contact page and we will get back to you.

If you answer yes to this question and want to know where you stand legally and what you can do about it, then contact Inside Timeshare and we will get back to you.

Remember, do your homework!