The numbers tell us one giant truth: From the start Harlequin was set up as nothing less than a Ponzi scheme requiring a constant influx of new victims to keep everything going.
Consider these numbers…
– Total “deposits” by victims: US$800 million
– Percentage of “deposits” paid as salary and sales commissions: 50%
– Percentage of “deposits” used to pay interest to earlier “investors”: 22% (estimated, see below)
– Number of units sold: 9,114
– Number of units built: 230
It might be worth Ames and his merry band of supporters considering to remain silent throughout 2015.
To do so would reduce if not eliminate the anti-Harlequin responses no matter how articulate and factual they may be, given that the anti-Harlequin posts in the main are merely responses to the incessant nauseating, repulsive litany of lies emanating from Harlequin and their supporters in their never ending quest to justify “at best” the gross incompetence and abject failure by the Ames family and staff of Harlequin to operate their businesses in a proper manner.
The constant need to allay the blame for the failures of the Ames family and management at Harlequin at the door step of others demonstrates that the Ames family and management of Harlequin are in serious trouble.
And that summary is giving Ames and his cohorts far more benefit of the doubt than the facts say they deserve. The only reason I can think of that they haven’t been arrested as yet is that the Serious Fraud Office has been overwhelmed by the planned worldwide chaotic nature of the fraud through only god knows how many different companies, coupled with legal contracts bearing so much fine print, inter-jurisdictional references and available outs for the criminals.
The resorts will most probably never get built, not in the lifetime of many of the
To state on Christmas Eve that the fantastic news amounted to a possible completion of a further 76 rooms by 2016 out of 9,100 sold, was pathetic.
Let us see if those in the Pro Harlequin camp can restrain themselves from dropping Ames and themselves in it on an almost constant basis.
Numbers tell the tale…
For the record the facts are that Ames took in close to £500 million pounds in deposits, and not the £440 million as previously stated. USD$800 million, Bajan Dollars $1.6 Billion or in EC Dollars $2.1 Billion.
Some 230 units out of 9,114 units sold are completed.
The bulk of this c £330 Million, more than half a billion USD was taken in deposits after those Ames blames for the problems had left. In the period from June 2010 to June 2013 Ames claims to have spent USD 50 million on construction. 10% of the c 500 million USD cash taken in deposits by the Ames family in the period since those Ames blames for the failure of Harlequin left.
The Ames family took in excess of 1.9% of deposits in dividends, loans for personal property purchases, and shareholder loans, loans which they are now refusing to repay.
50 % of deposits taken were used to pay bonuses / commissions to Harlequin Staff and agents.
Anywhere between 2-5 % + was spent on Hotel Operations, but this figure will never be independently verified as Ames still refuses to produce Audited accounts as he is obliged by law to do.
Because Ames flouts and breaks the law by his reluctance to provide independent audited accounts the % of deposits used to fund the purchaser interest payments could be in excess of 22%.
Cash and SIPP purchaser funds were comingled so these funds were used in part to pay interest payments of mortgage purchasers.
Harlequin is an accounting Nightmare, and that was a choice by Ames.
Having spent 1.2% of deposits to date on legal fees to recoup a staggering 0.28% only made economic sense to Ames. Of course he claims the bulk of the expenditure was in pursuit of the “main culprits” as he sees them the culprits being Wilkins Kennedy, his absolute belief that he will win his claim against Wilkins Kennedy is not mirrored by many who are familiar with the case.
There is something very wrong with Harlequin – of this there is absolutely no doubt. But there is also no doubt that David Ames planned it this way.
2015 will be a very telling year.
contributed anonymously to BFP