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.
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.
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).
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.
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.
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.
It centered mainly around the disappearance 8 million Euros between 2012 and 2013, the diversion of these funds was apparently noticed by the Lyng’s while a lawsuit was pending between Cazorla and Lopesan. This lawsuit revolved around a 14 million Euro debt, which Lopesan claimed was owed to them by Cazorla as they had bought the debt from the Cardenas family. This debt it is claimed was for the land which Cazorla purchased from Cardenas for the golf course and complex at Anfi Tauro.
Well the story has not ended there, round 2 is up and running.
Just recently the Spanish press has been running several stories on the continuing battle between Cazorla and Lopesan, it also involves the new head of the Costas, Rafael López Orive, who is facing charges of “Prevarication”. (For the full story on this click the link below).
In another twist in this long running dispute between the two major players in the tourist sector in Gran Canaria, Santana Cazorla has issued a lawsuit filed in June 2018 at the Mercantile Courtin Las Palmas, involves Bankia, the public bank of the Spanish State and 6 million euros.
Apparently it looks like Bankia lowered the price for the purchase of credits from Anfi del Mar by Lopesan by 6 million euros and according to the lawsuit Cazorla states:
“Lopesan ha estado comprando créditos existentes contra las sociedades de Anfi y contra las empresas del grupo Santana Cazorla a diversas entidades bancarias”.
“Lopesan has been buying existing credits against the companies of Anfi and against the companies of the Santana Cazorla group to various banking entities.”
The situation between the factions is complicated and we will no doubt be seeing many more lawsuits and counter lawsuits being filed, this now begs the question, what does this actually mean for those members of Anfi?
When IFA Lopesan purchased their 50% share, it left many wondering where Anfi would be heading, would Lopesan if they do take full control turn Anfi into a hotel and do away with the timeshare model?
Looking at the history of Anfi and comments from members, since the Cazorla’s purchased their 50% share and took control of the board, Anfi has been seeing a slow decline in standards, a series of scandals and lawsuits, with the latest being the Tauro Beach Project. It must also be remembered that Anfi are also losing heavily in the courts for the past mis-selling of their timeshares.
What the future has in store for this once great resort, no one really knows, what we can say however is that it is going to be at a cost of millions of euros in legal bills, something the Anfi members should be very much aware of, yet we believe that they will as usual be kept in the dark and fed whatever “spin”Anfi can put on it.
If you have any questions or comments on this article or even want to know if you have a valid claim to retrieve your purchase price and have your contract declared null and void, then use our contact page. Inside Timeshare will get back to you and endeavour to answer your questions and concerns with facts.
Welcome to Friday’s Letter from America, the last one for 2017, this week Irene looks at the past year from across “The Great Lake”, while we look at the past year in Europe.
Our first article of 2017 was about the family of fake lawyers from Tenerife, Litigious Abogados, it highlighted a new firm called Abogacia Española, which happens to be the name of the official website to check the validity of lawyers registrations. This was a very good move on the part of this well planned out fraud, as it did give an air of legitimacy when you did a web search.
Since then, we have seen many incarnations of this fake law firm, although the names have changed, one thing hasn’t, that is the nature of the fraud. They are still duping consumers into believing that they have a case at court, then to be part of it you need to pay the Procurator fees. That is only the start, it get even more sophisticated. Search Litigious Abogados for the full story.
This was a great blow to the RDO, as Silverpoint was also a major contributor. Funds this organisation could ill afford to lose. It has since come to our attention that the RDO is to form a partnership with ARDA (American Resorts Development Association). This particular organisation is well endowed with contributions and is very strong in the world of lobbying for its members. So it begs the question is the RDO going to be taking on board the tactics of ARDA?
Staying on the subject of Silverpoint, January was a momentous time on the legal front, with the Supreme Court making their first ruling against this company. This was the case of Mrs Shirley Wilson and her long battle against the selling tactics of Silverpoint.
Within a week the highest court in Spain ruled three times against Silverpoint, opening the doors for many more cases against them. Since then the rulings have been coming in thick and fast, leaving no doubt that what they had been selling was illegal.
February brought the news that Alberto Garcia had “stepped down” from Mindtimeshare and that the RDO would not be renewing the contract with that “Consumer Association”. Alberto Garcia for many years had been running the RDO’s“Enforcement Programme”, attacking any company which threatened the timeshare industry. This has now been given to Kwikchex and the “Timeshare Taskforce”, run by Chris Emmins.
Throughout the year, Inside Timeshare has been following the Anfi “Tauro Beach Project”, this has been a story that has now seen the former head of the Coastal Authority being charged with falsifying official documents and wrong doing in public office. No doubt we will see his trial sometime in the new year.
This project was to build a man made beach at Tauro, with the building of hotels and a shopping center. This was given to Anfi to run for 50 years, the Government of Gran Canaria is now seeking in the courts to remove these concessions in the light of the evidence of malpractice. This story is not over yet.
Anfi have been on the receiving end of many Supreme Court rulings since March 2015, they however have continued to deny any wrongdoing and inform their members that they have not lost any cases. In fact they have embarked on a campaign to attack Canarian Legal Alliance, trying to sow seeds of doubt among their clients. Below is a link to a video showing the National Spanish TV news on TVE 1, in this clip, one of the CLA lawyers explains the Supreme Court rulings. For the National Television to broadcast this item shows that CLA is doing what they say and that Anfi is trying to divert attention from this.
Another story we have been following is that of Los Clavelesin Tenerife and the battle for control of the resort. Again this is an ongoing story which at present seems to be dragging on. It revolves around the selling of Wimpen to ONA Grup, who were the managing company of this resort. Their contract has been ended but they still seem to be trying to run the resort against the wishes of the Owners Committee.
There has been a lot of argument on this issue, with some very nasty consequences, it is clear that this issue is not going to be resolved in the near future. It may also end up being a rather costly one with only the lawyers benefiting.
In July we published a rather different article on the timeshare world, this was a positive one, featuring a company that we have not been able to find any adverse comments or complaints. It is off course Disney.
This is a shining example of how the timeshare industry should operate, fair, truthful and with the consumer in mind. There again, it is what we expect from an organisation which prides itself on putting people first.
After a long reign TATOC finally went into liquidation, with Harry Taylor and TATOC being totally discredited. For years this organisation has duped not only timeshare owners but also organisations such as Citizens Advice Bureau. Any owner that went to CAB with a problem would be recommended TATOC as the place to go. Little did CAB know that this organisation was funded and basically run by the industry. All we can say is good riddance to a very bad and foul smelling egg!
There have been so many articles it is difficult to review them all, but Inside Timeshare has highlighted some of the most dodgy companies that have emerged over the course of the year. These articles have saved many readers considerable sums of money, we intend to continue with this.
But before we go on with Irene’s roundup of the year from the US, we finish with the news of yet three more sentences issued by the courts. On 27 December the Court of First Instance in Maspalomas declared yet another Anfi contract null and void with the client being awarded over 29,000€ plus legal interest.
On the same day the High Court in Tenerife announced another ruling against Silverpoint, with the contract being declared null and void and the client in this case being awarded over £9,000 plus legal interest.
There then followed on the 28 December another Supreme Court ruling from Madrid, this was number 82! Again the company was Silverpoint, with the contract being declared null and void and an award of over £23,000 plus legal fees and legal interest.
These cases were brought on behalf of clients of Canarian Legal Alliance, so this does show this law firm is doing what they say.
Now for the year from a US perspective.
What Timeshare Members Can Look Forward to in 2018 and what
I wrote looking forward to 2017 on December 26, 2016
Our Advocacy Group did not have a name one year ago, or a Facebook page. Our advocacy Facebook page was launched February 2017 and Timeshare Advocacy Group™ April 2017. As I write this, our advocacy Facebook page has 706 members. We encourage industry observers, as long as they are respectful.
Back in February, I remember scrolling down my Facebook feed, a pianist, waiting with nervous flute, oboe, trumpet, and bassoon middle school students for our competitions to begin, when I suddenly saw a post called “Diamond Resorts Owners Advocacy” launched by an economics professor. This Facebook page was launched in response to a draft article I had written and distributed, requested by a few former timeshare sales agents who felt the practice of “pitching heat” to sell vacation points needed to be addressed and brought to the attention of the general public. Based on reader responses, only Disney Vacation Club seems to disavow this sordid selling technique.
Our professor also prepared this mission statement for our DRI advocacy group, but as our Inside Timeshare readers started to reach out to us asking for help with timeshare issues concerning other timeshare companies, I borrowed our DRI mission statement and generalized it to apply to all timeshare companies.
We seek to provide timeshare members and owners a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.
April 2017, a former Diamond sales agent contacted me, urging me to write a press release as she was worried Diamond members were not aware of the Arizona Attorney General’s $800,000 DRI settlement and the Assurance of Discontinuance announced December 23, 2016. There was a May deadline to file a complaint.
This former timeshare sales agent said we needed a Facebook page so that readers had somewhere to respond. I didn’t even know how to use Facebook until I got mad at timeshare July 2015, but I struggled through the establishment of a Timeshare Advocacy Group™ page, delighted to find a butterfly with a “Knowledge Speaks, but Wisdom Listens” quote by Jimi Hendrix. My first concert I attended in high school was Jimi Hendrix, second row, in front of the mic.
I expected my new creation to last for a month or two, until the press release ran its course, but it continues to receive views. We consider this Timeshare Advocacy Group™ Facebook a clearinghouse of articles written about all timeshare companies and are grateful to all our volunteer admins for both Facebook pages.
Now a look back to what I wrote December 26, 2016 with updates
Timeshare Lawsuits 2017
By Irene Parker, December 26, 2016
Our Inside Timeshare mission is to offer timeshare owners accurate reporting on both the good and bad aspects of timeshare today. While we admit we bear more to the negative side of timeshare reporting, this thirteen page report from the US Department of Justice listing timeshare scams explains why:
The other reason is because the industry is not well regulated. Timeshare owners do not have the level of organization or funds necessary to compete with timeshare developer lobbyists. Lobbyists used to primarily direct their efforts towards influencing lawmakers, but more and more efforts are now being directed towards influencing US Attorneys General:
Looking to 2017, we need to look back and reflect on timeshare’s unresolved and continuing legal battles. Timeshare developers, former timeshare sales agents and solicitors, timeshare owners, federal and state regulators and advocates continue to weigh in on possible changes that will make timesharing more owner friendly and less predatory.
Will the final piece of this legal and regulatory puzzle result in a less aggressive and deceptive industry – or will practices continue unabated and unchecked resulting in more of the same?
WestgateUpdate 12/29/17: After the presidential election the CFPB dropped the Westgate investigation. President Trump is close friends with the Siegels, Westgate owner David Siegelwas seen campaigning next to the candidate in 2016. That’s Mr. Siegel to the left of Trump. Charles Thomas reported on the timeshare the Trump family is launching in Scotland, reported as a golf course in the US during the campaign.
“Westgate is facing lawsuits in several jurisdictions and a Consumer Financial Protection Bureau Investigation. Allegations include fraudulent and deceptive business practices ranging from high pressure sales tactics, failure to honor timely rescission requests, elder abuse, illegal debt collection practices and impermissible telephone solicitations.” The Capitol Forum June 27, 2016
Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices. While the amount will probably be reduced on appeal, it sends a message that courts and juries are listening.
The Manhattan Club Update: Remarkably, New York AG Eric Schneidermanmanaged to ban the owners of The Manhattan Club from working in the timeshare industry and achieved a $6.5 million settlement. Rarely is wrongdoing admitted. However, attorney Douglas Wasser, representing TMC owners, said “Hundreds of members will be helped, but there are over 14,000 members.” Even a settlement this size will do little to curtail predatory marketing and sales practices. The investigation took years.
Back in 2016
Attorney Douglas Wasser represents 30 Manhattan Club defendants.
“To my knowledge there has been no dismissal of any Manhattan Club proceeding at this point. The NY Attorney General investigation is proceeding, and the motion to dismiss a currently pending class action suit has been adjourned to January 5, 2017 for now. Three prior class action suits at the Manhattan Club have been dismissed. But, at least for the time being, the current class action still survives,” Mr. Wasser reported November 15. 2016
Marriott Vacation Club Racketeering Update: Most disturbing of all, political and legislative maneuvering in Florida resulted in a change in the definition of timeshare, seemingly in an attempt to circumvent the merit of the case, according to attorneys involved with the case. That was not the end of it. We will hear more about this case in 2018.
“The Marriott racketeering lawsuit seeks to abolish Marriott’s points program, which attorney said is unique among timeshare companies. It also seeks the return of fees and costs paid by buyers.”Paul Brinkmann reported October 13, 2016 for the The Orlando Sentinel.
Diamond Resorts Update:A judge ruled in favor of arbitration in the billion dollar lawsuit filed against the company, and Congress reversed the CFPB ruling that would allow class actions. Diamond Resorts is one of the only timeshare companies to have a class action ban in their contract, forcing arbitration. Arbitration is binding and private. Lawsuits filed are public record.
A recent class action was filed against Diamond Resorts:
Matt Daniel Finazzo, et al. v. Diamond Resorts International Club Inc., Case No. 5:16-cv-02256, in the U.S. District Court for the Central District of California.
I don’t mean to be the Grinchess that stole Christmas, so to end on a positive note,
People are listening!
Charles Thomas and I are hearing from people all over the world who are joining forces to work towards:
⦁ A legitimate secondary market
⦁ Less aggressive and deceptive selling
⦁ Less predatory lending
Thank you from timeshare owners to our regulators and lawyers working to protect us. Since last year we have found a few more self-help groups we are confident are on the side of the timeshare member and are not industry influenced.
So that is 2017 in a nutshell, if this coming year is anything like the last we will be seeing many more stories like these.
Inside Timeshare thanks all those who have contributed to the articles and also to all the readers and those who have contacted Inside Timeshare for help and advice. If you require any information on any company that has contacted you or you may be thinking of using but need to know about them, contact Inside Timeshare and we will point you in the right direction.
We wish you a prosperous New Year, enjoy your celebrations and we will be with you in 2018.