The Costa del Sol Action Group CDSAG (www.costa-action.co.uk) was started by David ‘the Dogman’ Klein more than four years ago after David Klein and his wife lost money due to the incompetence and mis-selling by a financial adviser in Spain. David could not obtain any recompense or redress because the company was not licensed, regulated or authorized by any official body in Spain such as the CNMV or DGS in Madrid, Gibraltar FSC or the UK FSA.
From these relatively humble beginning the CDSAG has now grown to represent more than 700 families who have suffered similar losses totaling a staggering £80 million.
The lawyers acting for the CDSAG, IURA Despacho Juridico of Fuengirola, initiated proceedings in Spain’s Supreme Criminal Court in Madrid culminating in a class action on behalf of selected aggrieved parties against certain financial advisers. The Comisíon Nacíonal del Mercado de Valores (CNMV) and the National Fraud Squad in Madrid estimate that the number of expatriates who have suffered losses at the hands of such unscrupulous financial advisers could run as high as 17,000 in Spain.
The CDSAG is non-profit making and our general principle is to charge members a one-off joining fee of 250 euros. That is how it has worked in the past and all that money has gone to our lawyers to defray their costs such as translations and copying. Vast numbers of documents have had to be translated into English for thee Spanish courts. The class action is now in its final stages with prison sentences and restitution orders expected for the miscreants.
What we need to do in your case is gather together as a group as many people as we can who have ostensibly been defrauded by Palmera Properties and its associates. Publicity is vital to bring the problems and what we are doing to resolve then to the attention of these buyers. I have just had a telephone call from tonight with Trevor MacDonald asking about your case as they had picked it up thanks to our friends at the Sunday People.
I shall work out a plan of action which will include publicity on relevant internet message boards and perfection might be our own web site. Anybody any good at web site design?
I shall also work out a financial plan. The more people we recruit and the cheaper it will be per capita.
Best regards,
Gwilym
Gwilym Rhys-Jones
Adviser and Investigator
Costa del Sol Action Group
http://www.costa-action.co.uk/
E-mail: gwilymr-j@terra.es
Tel: + (34) 951 31 82 77
Mobile: + (34) 699 840 606
Skype address: gwilymrj
Huerta Nueva 11 17 1D
Estepona 29680 Málaga
Spain
Case 1. Keith & Carol M.
They paid a deposit of £17,000 in September 2002. After contacting Palmera numerous times with no success they asked for their deposit to be returned. They were told that it would be no problem but it could take up to four months. It has now been fifteen months and even though they asked for help from their Spanish lawyer who contacted Grupo Mirador he has had little joy.
‘’We first signed to buy apartment no. 20 on the 19th September 2002 in Spain, leaving a holding deposit of 3,005 euros for the apartment which was due to be completed in eighteen months. This was followed by a further sum of 20,300 euros on the 15th November 2002 to complete the deposit on the final price of 8,137 euros. Over the next eighteen months we rang Palmera Properties numerous times only to be told they would contact the builder and would get back to me. In eighteen months of calls Palmera Properties never made contact once. After three years and still no contact from Palmera we called at the office personally and after still getting no satisfactory answers we asked for our deposit to be returned. The date was July 2005.
Palmera Properties said there would be no problem and wrote up a cancellation letter in the office. Palmera informed us that it could take up to three months for my deposit to be returned. After three years I was just glad to be getting my money back or so I thought. It has now been twenty months of repeated phone calls and still no sign of any money. We asked our Spanish lawyer Pepe Jimenez from Montemar, Costa del Sol if he could help and after calling all parties concerned has said no one has returned his calls or e-mails.
I cannot believe how the builder can possibly keep all the deposits, which must amount to a substantial amount, without contacting the buyers some of which like myself have been waiting 4years 6months. I do hope you can help to bring this fiasco to a satisfactory end by whatever action is required. I like many other buyers, wish to thank you for your involvement and obviously wish you every success.’’
Case 2. Joseph W.
He paid an initial deposit of approximately 22,000 Euros (£15,000 Sterling), on a two bedroom/two bathroom apartment at Terque, in Almeria, ("Los Olivos" project), in January 2006. This was scheduled for completion in the Summer of 2007.
He had received no regular updates on this at all from Palmera and had to engage the services of a Spanish Lawyer.
The lawyer too has to date got nowhere, and has advised that he will continue to "push" for either a guarantee from the builder, (in this case they are called Inroal), or a return of our deposit.
After Mr. W. recently left numerous messages at the Palmera office he did get a call from them on Friday 27th April.
He was told that InRoal had been called into their offices during that week, and a Contract had been discussed. The new building completion date for "Los Olivos" now is end of 2008.
To date i understand that no "Roman ruins" have been located on the site, and no real reason for this delay has been given.
Meanwhile, the Southport branch office of Palmera has closed, and has officially "Relocated" to a rather dingy flat well away from it's former prime location.
The two people who had run this office, a guitar teacher and an employee of Barclays Bank appear to have both "gone to ground
Mr. W.’s thinking is as follows;
1) Since our deposits were taken, labour and material costs must have risen. Therefore, what incentive is there now to build these apartments at Dec 05-Jan-06 prices, which, by the end of 2008, will be worth even less ?
2) Where have the deposits gone ? Held in an Escrow account building up interest for correct utilisation? I think not. If so, Palmera would have no problem reimbursing all their dissatisfied customers their deposits, and they could keep the interest for "administration" costs. But this has not been offered.
3) Why are Palmera only discussing contracts now with InRoal a full 17 months after we paid our deposits ?
4) Where have our local "Palmera Consultants", gone, and why?
5) How are the Palmera franchises for these Branch offices allocated? Is any check done on the backgrounds and suitability of the applicants? If not, why not?
Case 3. Doug S.
Benalmadena and Palmera Properties.
I have been involved with a similar complex in the Almeria region on a site in the Terque village.
Last September and it was still a ‘’ground zero after three years’’.
Case 4. Steve S. & Rob. H.
We purchased an apartment at la Perla de Mirador B62 on 27th September 2004 after we were sold it by Palmera Properties.
The salesman we dealt with was called Luke Woodcock. He showed us a development at Antequerra (which looks like its in trouble now as well) but it was well inland and we wanted to be near the sea.
Then Luke showed us where La Perla was going to be built which was what we wanted.
To reserve our apartment we put down 6,010 euros the balance for the deposit was 45,717 euros paid to Palmera which left a balance of 60,853 euros to pay.
From this point on Palmera never contacted us again and we had to find out everything ourselves. When we did get through to them they would tell us the building will start soon. Three years later we are still waiting.
We have just found out that there is further development being built where our apartment is supposed to be being built. It is under the name of Aura La Perla and you can see this on www.spanishproperty.com or www.spanish-living.com.
It looks like the builder is selling these apartments again through a different agent.
Case 5. Steve W.
We are in with Palmera Properties and the builder Grupo Mirador. What’s the chance of us getting our money back.
Case 6. Tony & Trina A.
‘’I was wondering if you could help or put me in the right direction. We have been dealing with Palmera Properties since October 2004 when we bought a 4-bedroom linked detached with garage off-plan property in Fuente De Piedra, Antequera Malaga we paid over a deposit of 54,000 euros.
Although our property is up we are still no further to a completion date and Palmera seem to fob us off each time we ask the question we were told at the outset that the development would be completed late 2005. We sold our family home in England as our property in Spain was for permanent living and moved into rented accommodation and also put our furniture in storage which is still there at a cost of £300.00 per quarter. I have asked for my money back as life has now moved on here, my children are no longer in school and are now out work. Palmera are costing me money now and it shouldn’t be allowed. They blame the builders but as far as I’m concerned they are the agents and we are the clients. I would also like to point out that the house has been built without the garage.
I truly hope you can help or send me some advice so I can take the matter further as I feel I am hitting a brick wall.’’