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The Paramount

Start the Week: Silverpoint Liquidation Update

Welcome to Monday morning and the start of another week with Inside Timeshare, today we have a look at the latest developments in the Liquidation of Silverpoint. Many people seem to believe that this is just a simple procedure, wind down the company, secure the assets for creditors and that is it, unfortunately, when it comes to timeshare and Silverpoint in particular this is not the case as you will see. By the nature of the company setup, this is one very complex case.

One of the main law firms which are deeply involved in the liquidation procedure is Canarian Legal Alliance, they have been at the forefront of the moves by the authorities to investigate the dealings of the myriad group of companies of which Silverpoint is part, The Limora Group.

Two of the CLA lawyers behind the investigations.

In their update to clients, CLA explains they have requested through the Mercantile Court, the “accumulation” of the procedures against Silverpoint, along with one called Oasis Investments SA, the former owners of The Paramount. This would mean that both liquidation procedures are joined, so far no reply to this request has been received from the court.

If this procedure is approved, CLA would then request that the actual Paramount building be reintegrated with Silverpoint which would raise the assets of the companies. The lawyers have also joined other actions requested by the Court Appointed Administrator where they have asked for Excel to return some of the assets. These were initially acquired in an operation which the lawyers at CLA classified as fraud.

Details of CLA’s March update on this can be found at the link below.

It was also reported that the Court Appointed Administrator and Excel asked for a suspension of hearings due to a possible agreement between the parties. This agreement establishes a reintegration of eleven thousand timeshare weeks, increasing the companies value. In exchange, there will be a recognition of debt in Excels favour of seven million euros.

The lawyers representing their clients have naturally opposed this agreement in part. They have accepted the reintegration of the weeks as it is in their clients best interests due to the increased value of the company. However, they do not agree with the recognition of any debts to excel as they do not believe them to be justified.

It will now be down to a Judge to study all the arguments presented and then base his decision on the facts.

The CLA Lawyers have also requested information on the criminal procedure as this appears to have gone a little cold recently. They have also made a request to the court to carry out the gathering of evidence, such as the interrogation of key staff, their legal advisors and also the Court Appointed Administrator, who should after all this time have a very good grasp on the Limora Group/Silverpoint set up.

As we stated in our opening, this is one of the most complicated liquidations which the courts have had to deal with. The whole Limora Group set-up was designed to divert money worldwide, using methods such as “inter-company loans”, one of the reasons behind the current liquidations. All this was expertly achieved by Kwang Boon Sim, the financial guru of the late Robert “Bob” Trotta, the full story can be read at the following link.

The late Robert “Bob” Trotta & Kwang Boon Sim the Financial Guru

There is a lot more going on than we are able to publish here, as and when it becomes public knowledge it will appear on these pages. In the meantime we must issue a warning, as you can see from this article, the liquidation process is complex and is going to be long and drawn out, so beware of the “cold callers” who will claim they have a “fast track” procedure to help you. Timing is down to the courts and the completion of any investigations, no law firm, lawyer or any other person can have any influence on the process, not even god.

Would you like to know where you stand with your timeshare contract, is it illegal, how can I end the contract, do I have a valid and viable claim?

If you would like to know more and what options are open to you, please use our contact page and Inside Timeshare will get back to you. 

Silverpoint: News from The Mercantile Court

The biggest fraud in timeshare history perpetrated against consumers is also the longest-running series of cases in the courts, the first cases were filed around 12 years ago and have been complicated by numerous efforts by the company to frustrate proceedings with constant appeals and not to forget the movement of funds and assets. We are obviously talking about Silverpoint.

The biggest “spanner in the works” was the move by The Limora Group to “liquidate” the majority of their companies, Silverpoint included, by claiming that they are broke. Unfortunately for them, the courts and authorities have seen through their sham. The full story on this can be read in the Six-Part Series Exclusive Breaking News: The Truth Behind Silverpoint Exposed, on the link below.

This article clearly shows the underhand tactics employed by Limora Group and more so by the “Financial Guru” of the late Robert “Bob” Trotta and his family, Kwang Boon Sim. It is all of this which has attracted the authorities into launching a major investigation, one that is centred on criminal activity and possible “money laundering”.

The late Robert “Bob” Trotta & his “Financial Guru” Kwang Boon Sim

There are several lawyers and law firms involved in litigation, but by far the biggest is Canarian Legal Alliance, which has been kind enough to provide much of our information. The CLA Lawyers have been instrumental in bringing all this to the attention of the authorities and have been working with them on behalf of their clients.

When the announcement was made that Silverpoint had filed for liquidation, CLA immediately began to put procedures in place to secure payments for their clients. These were clients who had not yet had their cases heard in the courts and all those with firm sentences, submitting them as “creditors” with the Court Appointed Administrator.

In November last year, the list of creditors was filed by the court-appointed administrator with the Mercantile Court. It included around 570 clients being represented by CLA and the recognition of the contracts nullity and the amount being claimed, where an agreement was not able to be reached, a separate writ was presented to the court. These separate cases will be heard in due course and each client will be informed as their cases move forward.

Although the administrator has filed his list of creditors, the final payment has not yet been determined, this is very much dependent on the assets that can be identified and the amount that can be liquidated. Obviously, the investigation into the concealment of funds and other assets via foreign entities, all part of the Limora Group, will affect this point.

Inside Timeshare has also been informed that a request has already been submitted for the reversal of some transactions from Silverpoint accounts in the past, these were an attempt to strip the company of assets to the detriment of creditors.

The administrator also filed a claim with the court against Excel Hotels and Resorts to reverse a similar transaction involving “unsold inventory”. These were from Hollywood Mirage Club, Beverly Hills Club, Beverly Hills Heights, Palm Beach and The Paramount, known as Club Paradiso. It would seem these were sold for just 60€ per week, a ridiculous amount which is by the way, well below the book value which is reflected in their accounting records.

Club Paradiso

As we reported in our Six-Part Series, this “sale” was a deliberate move to “create” a debt between Silverpoint and Excel to facilitate the transfer of huge amounts to excel, reputedly being in the millions of euros. This “transaction” also gave away the company’s future income. Although the administrator had found no proof of a real commercial relationship between them, it is highly suspicious and the administrator suspects that it was all designed to strip the company of funds and assets before filing for administration. This is highly illegal and is also criminal.

There has also been a request by the administrator for the nullity of the earlier recognition of the debt in favour of Excel and requested Excel pays back the amounts they received on invoices raised by Silverpoint. This also includes the return of the “weeks purchased” and the money received. Included in the request was a cancellation of the embargo on properties and other assets in favour of the Excel debt. CLA is working with the administrator and has joined this procedure to reverse the transactions.

This action intends to return assets to Silverpoint, such as the “timeshare weeks sold” to Excel, now owned by The Ona Group, which as we said were sold very much undervalued by their own accounts. It has been muted by many professionals that this move was a farce and designed to strip Silverpoint bank accounts and assets. The aim of the lawsuit is to prove that Excel does owe money to Silverpoint and obviously with the return of all assets there would be a great rise in available funds to the benefit of creditors.

The precautionary and preventive measures in this lawsuit which was requested would block around 8 million euros in Excel’s accounts, this would also prevent further diversions of funds and assets to other companies.

It has now been announced that this precautionary measure has been scheduled to be heard on 25 October, with the main claim to be heard on 29 November. We have been informed that CLA lawyers working on this complex case will be in attendance and representing the interests of all their creditors.

So, this long-running story is not yet over, there is still a long way to go and a lot of court hearings, let alone the conclusion to the investigation into the movement of funds and assets which is now involving cross border investigations. Inside Timeshare will keep you, our readers informed as and when new information is available.

If you have any questions on this subject or would like more information on the illegality of contracts sold in Spain after January 1999, please use our contact page and Inside Timeshare will get back to you.








Club Paradiso: Latest News

Inside Timeshare over the past months has been reporting on the latest developments regarding Club Paradiso and The Paramount. We reported some time ago that Alex Lawson of Alvarez and Marsal became the administrator of Club Paradiso Ltd and began proceedings to liquidate the company (club). We also reported earlier in the year that many bookings made by members had not been honoured, the reason given was that Excel Hotels and Resorts had not been paid for the bookings. Many members arrived to find The Paramount closed and had nowhere to stay unless they paid yet again.

The strange thing is that all the companies involved in this are all part of the same group of companies of which Alex Lawson is being placed as administrator to liquidate them. He is also the appointed liquidator of Limora Group the parent company of Silverpoint, Excel Resorts and a host of others.

In the latest letter to members Alex Lawson tries to explain what is going on, he begins with the excuse of a “breakdown of relationships with a number of inventory providers”, which necessitated the suspension of all new bookings from June 2019.

Alex Lawson

He then goes on to explain that the “company” had been working hard to honour “existing 2019 reservations as far as possible.” Unfortunately for the majority of members, they have had to make their own alternative arrangements.

The letter goes on to state that given the issues that face Club Paradiso they are unable to confirm any bookings for the 2020 period. His advice is to contact the destination resort to confirm if the booking is still valid and arrange “for payment” for the accommodation or to “confirm cancellation.”

The next paragraph which is in bold and underlined goes on to say:

“For the avoidance of doubt, please note that, in the case of bookings for the 2020 calendar year, whether previously confirmed or unconfirmed by Club Paradiso, Club Paradiso is not able to maintain these bookings and is not able to assist with payment or the sourcing of alternative accommodation in respect of the same. This applies to any bookings made during (or before) 2019 for the 2020 calendar year (and beyond).”

Well, that is blunt and straight to the point, members will get nothing.

Lawson then goes on to say that the property (The Paramount) “was never owned by the club,” it was only made available to members through a lease agreement, he then states that the company (Club Paradiso was not a direct party to).

Again he goes on to blame “unpaid lease payments” as the reason why The Paramount was “unable normal operations”. This resulted in The paramount having to deny access to club members.

Lawson then explains that The Paramounts former owners (whoever they are) agreed on a sale and it is now under new ownership. He also points out that Club Paradiso was not directly involved in the sale and is unable to provide any information on the sale or the future of The Paramount.

Now considering that Lawson is involved in the liquidation of many of the companies of Limora Group and the fact they are all interconnected it does seem very strange that he claims he does not know what is going on!

So to recap, Alexander Lawson as liquidator closes down Club Paradiso along with The Paramount itself claiming unpaid fees,  using this as justification to members/investors as the reason the building is closed.

The building is then sold to a real estate company in Tenerife who are now selling the apartments off as individual units (so why is the money made from this sale not given to the investors as per their contracts?). He also believes that nobody will take any legal action but will just roll over and lose everything they have paid for, somehow Inside Timeshare cannot see this happening.

It is now becoming very apparent that the whole structure of which Silverpoint is a part of is just a very large criminal enterprise. This also includes the actions of the liquidator who is taking action which does not benefit creditors or the club members themselves, His actions are guided by his employers the UBO’s (ultimate beneficial owners) the Trotta family who all reside in the USA. (See link below for the full story if the reasons behind the liquidations).

Inside Timeshare has also heard through the grapevine that the State Prosecutors Office of Tenerife has also included Alex Lawson in their criminal investigation. Further information on this when there is confirmation.

What Inside Timeshare can reveal at this point is that one law firm is already on top of this and is currently taking action on this, no prizes for guessing which law firm, Yes, Canarian Legal Alliance.

If you are a member of Club Paradiso and would like to know your legal options or further information you can either use the contact page on Inside Timeshare or you can contact Canarian Legal Alliance direct through their website:

Link to the 6 part article on the liquidations.

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