“Jester also bought some planes! Did they use my money to do that? I don’t know because the accounts were still not published.”
“None of the other resorts were really started yet even though thousands of people had mortgaged their homes to buy into them.”
Contributed by Beggars Belief
For a moment though let’s enjoy a story about an overseas developer called Jester Property. I invite you to comment on how much of this story could be factually applied to a situation in the Caribbean as we find it.
In 2006 I invest in a resort marketed by Jester Property. They promise to build my villa and open the resort at Fukemoff Cove in 2009 so I can enjoy a healthy return on my investment. The terms of the contract allow Jester to use my money, which wouldn’t be held in escrow, to build other resorts. They have trouble with their builders and so things go a bit slower than hoped. I got a bit worried because it wasn’t easy to find out what was happening with my money as the developer didn’t file their accounts.
Lots of other people were investing and some resorts were reported to be nearly sold out. Jester fell out with the next set of builders and I got concerned that they really weren’t in control of this project. I was relieved when they announced that a big multi-national Spanish hotel and travel agency was going to run the resort. Jester said that this company would really help maximise my return because of the global reach and the excellence of their operations. After a while though we didn’t hear any more about this company and I checked the Jester website and all references to them had been removed.
Delays kept happening
The delays kept happening but eventually some of the resort was opened but the general manager said that it was losing lots of money every month so it had to be subsidised. That’s strange I thought because the bloke in charge of Jester had told the world a year before that the resort profits in twelve months would be enough to cover my repayments on my unit. This didn’t add up. Although the resort was partially open my unit wasn’t one of them and I was told I may have to wait for a later phase when an international airport was due to open.
Jester then started building other hotels that hadn’t even been mentioned when I invested and the terms of my contract would allow them to use my money to do it. How much of my money was left by now. The second builders had been chucked off now and Jester said that they would finish building it themselves. Jester also bought some planes! Did they use my money to do that? I don’t know because the accounts were still not published. None of the other resorts were really started yet even though thousands of people had mortgaged their homes to buy into them.
OK, so Jester is a fictional company. But would you invest in Jester if they were for real?