Athena law are now receiving complaints from consumers, and is conducting an investigation as to the possibility of being able to recover compensation from third parties that were involved in the development, selling and financing of the Harlequin investment scheme. It is intended to pursue any viable claim as a group action, with an estimated value to consumers of £400 million.
This may be of interest to the TCA and its consumers as it arises from the investment in properties property abroad by UK consumers, the majority of whom are elderly and vulnerable, and who are at risk of losing their life savings.
In summary the Harlequin Properties group of companies, based in British virgin Island (BVI) sold an investment product through various selling agents.
As is often the case, companies such as these prey on vulnerable people and sell them an illusory dream of large financial gains.
The pattern would appear to be as follows:
- The consumer is the subject of an unsolicited approach by Hansard, concerning an “investment opportunity”. A meeting is then arranged at the consumer’s home.
- During the course of the subsequent meeting the consumer is told that they have an opportunity to invest in a property abroad. In the case of my clients the property is a hotel complex described as Buccament Bay in
- The consumer is told that they will be offered the opportunity to purchase a property at Buccament Bay in St. Vincent’s (or some similar resort) for say £200,000, but that there is no intention to ever purchase. Instead the consumer will merely pay a substantial deposit (often in excess of £40,000) raised by way of a mortgage on their home, and that Harlequin will make the payments on that mortgage. The resort will then be built and the consumer’s interest will be sold on to an investor, and they will receive their deposit back along with a 100% profit.
- In other words Harlequin are using consumers to fund the building of a resort, rather than a commercial bank.
- The consumer is then “assisted” by Harlequin and their agents in releasing the £40,000 deposit from their home by entering into a mortgage with a reputable UK Bank.
The resorts that were the subject of the investment are as follows:
(1) Buccament Bay in St. Vincent & the Grenadines
(2) Merricks in Barbados
(3) Marquis Estate in St. Lucia
(4) The Hideaway in the Dominican Republic
(5) Las Cana in the Dominican Republic
(6) Two Rivers in the Dominican Republic
(7) Garapua Beach Resort in Brazil
In my opinion the situation set out above is obviously a high risk investment. The consumers are not properly advised. They are dealing with a company that is domiciled abroad, with little information as to the financial stability of that company, and without any security being provided in return for their investment. Furthermore, Harlequin properties have failed to build the resort, or to refund the deposits to the consumers and have now gone into liquidation, leaving these elderly consumers for the substantial mortgages secured against their homes.
Harlequin Properties are now in liquidation.
The matter is being investigated by the Serious Fraud Office. See the link below.
http://www.sfo.gov.uk/our-work/our-cases/case-progress/harlequin-property.aspx
The Representations as made by Harlequin Properties
http://www.harlequinproperty.co.uk/
Now look and gaze at the fulfillment of a promise and we wonder why Consumers vent their spleen
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk