Harlequin’s David Ames disobeys court order, fails to give evidence in court. What now for investors?

David Ames – Harlequin’s Ponzi King

TLW Solicitors are here to help on a no-win no-fee basis

contributed by TLW Solicitors

Following recent reports of the Harlequin Properties’ headquarters going up for sale and the company’s chairman David Ames failing to give evidence in court, those who have lost out financially through the scheme are assured that they may still be entitled to compensation.

The Harlequin Property company was set to build 6000 luxury properties in the Caribbean, financed by deposits from UK investors. With only 300 of the properties actually built and the Harlequin Group having gone into liquidation, thousands of investors have been left in debt.

Rip Off Britain

The BBC’s consumer affairs programme Rip Off Britain investigated Harlequin Property for a second time earlier this year, after an initial broadcast in 2010. Although some early investors had been able to claim back their money, the returning of more recent deposits has been ruled out by the company since it entered liquidation.

Around 3000 UK investors are thought to have been involved in the Harlequin investments scheme. Chairman David Ames blamed the problems on the 2008 global recession and claims to have been let down by developers.

Recent evidence suggests the Harlequin case has been flawed from the start, with suggestions that it never owned much of the land it intended to build properties on, and a business model that relied wholly on continued foreign investment. (BFP Editor’s note: It’s called a ‘Ponzi Scheme’. We’ll say it, even if TLW Solicitors won’t.)

Investigations into Harlequin hotels & resorts

Harlequin Property has been subject to an ongoing investigation by the SFO (Serious Fraud Office) since 2013 and two warnings by the Financial Services Authority (FSA). 

Harlequin victims hit with new lawsuit from Guardian SIPP

Abandoned Harlequin H Hotel is a testament to Barbados politicians’ greed and incompetence.

Many “investors” in Dave Ames’ Harlequin ponzi scheme lost everything they had and more. Many of the gullible mortgaged their homes to “invest” in Harlequin, and relied upon the promises of Harlequin’s sales representatives. But the sales people knew that no legitimate investment could afford to pay the commissions that Harlequin was paying it’s representatives.

Now after losing everything, Harlequin victims are set to lose even more as Guardian SIPP is suing the investors for non-payment of the fees related to their self-invested personal pension.

Who is to blame for the mess?

Start with David Ames – but lined up with Ames should be the Government of Barbados, that allowed Harlequin companies to get away without oversight, accountability, annual filings and statements for the entire time. And our Government allowed Ames to acquire and start projects with zero oversight or consideration as to whether Ames had the means to finish those projects. As a result, the ‘H’ Hotel and Merricks projects look like bombed out disaster sites that are a testament to the greed and incompetence of the Bajan political class. Another Barbados property investment disaster that sends the wrong message to the world.

It’s fine to say that Ames and his crooked friends are responsible – but they couldn’t have done it without the wholesale purchase of willing politicians in Barbados and throughout the Caribbean.

Professional Adviser: Guardian sues Harlequin investors over SIPP fees

Will the Harlequin Resorts debacle explode in 2015?

David Ames – Harlequin’s Ponzi King

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 purchasers victims.      

Harlequin’s H Hotel: Latest photos of an eyesore that spoils Barbados

by St George’s Dragon

As promised I went to take a few photos of the Harlequin H Hotel today.

The site has obviously suffered less than Merricks, presumably because it is in a more populated area. It looks as though it was secure until fairly recently, although when I went it was possible to walk straight in from the boardwalk side of the site as someone has ripped the site hoarding door off its hinges.

There are still a few items of plant and materials on site, although nothing of any great value.

Such a shame. So many people have lost money just to create an eyesore that spoils Barbados.

A lovely view for the tourists from the beach and boardwalk! Click photo for larger view.

Editor’s Note: The exposed rebar is salt-drenched and rusted, with salt-laden water dripping down into the concrete. How long before no self-respecting structural engineer would approve further work? Has that time already arrived? Do we have an architects or engineers out there to comment?

More Photos… 

Harlequin fraudster: Matthew Ames jailed 40 months in fake carbon credits scam

“Ruined lives, pensions destroyed, homes lost. Suicides. Marriage breakups. Families falling apart as the work of a lifetime vanishes.

That is the legacy of Harlequin’s Matthew Ames, who was just convicted of fraud for running a ponzi scheme. Ames took £1.2million from the rich, from the poor, from widows and pipefitters. He was an equal opportunity swindler who dressed well, talked with such easy confidence that people immediately trusted him.”

… from BFP’s February 13, 2014 article Harlequin’s Matthew Ames guilty of ponzi scheme fraud.

Will father David Ames follow son to jail?

Matthew Ames

We were a little low in our previous estimates as it turns out that Matthew Ames defrauded investors of £1.6 million, some £400,000 more than thought – but hey, what’s a few pennies between friends?

The son of Harlequin’s Dave Ames was sentenced to 40 months in jail, which seems a short sentence considering that many of his victims are sentenced to life in poverty and despair.

It took about 3 years to bring Matthew Ames to justice, but that is quick considering the ongoing disaster of Harlequin Resorts created by Dave Ames and other ne’rdowells.

Further enjoyment:

Conman who used James Middleton to promote his bogus rainforest protection scheme is jailed

Harlequin’s Matthew Ames guilty of ponzi scheme fraud. Will father David Ames be next?

Throw away the key to Matt Ames’ cell…  Wait a minute, let’s use it one more time!

Kate’s brother – James Middleton, right, at the 2010 carbon trade exhibition. Matt Ames also oversaw Harlequin’s Buccament Bay

Ruined lives, pensions destroyed, homes lost. Suicides. Marriage breakups. Families falling apart as the work of a lifetime vanishes.

That is the legacy of Harlequin’s Matthew Ames, who was just convicted of fraud for running a ponzi scheme. Ames took £1.2million from the rich, from the poor, from widows and pipefitters. He was an equal opportunity swindler who dressed well, talked with such easy confidence that people immediately trusted him.

His product was topical, sexy in its own way: carbon credits, green investments, Forestry for Life. And didn’t he drive a Lamborghini? Wasn’t he also part of the Harlequin Resorts team? Isn’t his father successful? Just look at the people Matt Ames is seen with: Jack Charlton, and even James Middleton – brother of our future Queen.

“Out of the £1.6m that was invested across both companies, only £250,000 was ever returned to investors.

“The rest went directly into the pocket of Matthew Ames, funding his profligate spending habits.”

Ames used people with “impressive CVs” to promote Forestry for Life and give it a sense of legitimacy.

From Echo News Echo nabs £1 million fraudster

UK’s Serious Fraud Squad investigating Harlequin: Any information welcome!

Harlequin’s The Merricks in Barbados. The reality does not match the sales pitch!

by Peter Binose

Investors in Buccament Bay Resort are the closest to luck as one can get when wishing for luck for their investment from a company that promised everything and gave very little to very few.  But as luck goes it may be running out even for the Buccament investors.

Those that have invested in Harlequins different projects through like sounding Harlequin companies around the world, have only had bad luck.  They have put their money in to what they thought were rosy investments.  Many were encouraged by island politicians and governments, many of which had been warned of impending problems with Harlequin, yet went ahead and promoted them in such a way that now brings  disgrace to those small and even large nations. People have lost life savings and retirement pensions with help from these government ministers and governments.

How many units did Harlequin REALLY complete?

“I’m not sure of the current situation but I think it is something like only 300 units built out of 6000 sold, and no money left to build the missing units.”

BFP’s Robert takes a WAG (that’s ‘Wild Ass Guess’) about the number of units actually completed by Harlequin.

Reader “J” takes exception to Robert and says…

“The real number is closer to 120 that are built, about 10 are used for reception, liverpool football club  then staff / ‘celeb’ visits. Ten are not finished but in the main resort, not used.

So at any one time the most cabana’s that can be rented is around 100.

At a push if you include the semi derelict ones behind the fence, maybe another 50.

Block 2 is built but only 30 units finished, currently being used by HP staff.”

What do you think, folks? How many units has Harlequin really finished out of the 6000 sold?

UK Financial Conduct Authority cautions investors on new Harlequin rescue plans

“We urge financial advisers considering recommending consumers paying monies or further monies over to any of the companies in the Harlequin group at this time to proceed with caution.

You should ensure that consumers fully understand the risks involved with the investment. You should also advise consumers to obtain legal advice from lawyers in the country where the property is located before proceeding with any investment in a company in the Harlequin group.”

… UK Financial Conduct Authority

The last five or six months have seen a lot of talk of plans and schemes to rescue the investments of the poor folks who believed everything that Dave Ames said about Harlequin’s business plans. Nevermind that even the most mathematically challenged should have been able to see that Harlequin’s ability to continue to build relied upon finding new suckers, ah, ‘investors’ willing to suspend their disbelief as if they were watching a child’s cartoon on Saturday morning.

Harlequin was first and only a Ponzi scheme where payback to earlier investors was only possible with money from new investors. I’m not sure of the current situation but I think it is something like only 300 units built out of 6000 sold, and no money left to build the missing units.

Or so I think. No doubt one of our readers can provide the current stats.

The UK Financial Conduct Authority remains concerned about plans by various Harlequin entities to ‘save’ investors’ monies… with only a small additional investment. Ha!

Have a read of the notice and then… class, discuss!

Update to information on investments made through Harlequin Management Services (South East) Limited (“Harlequin Property”)

The Financial Services Authority (FSA) issued an alert to financial advisers on 18 January 2013 regarding this subject. Since 1 April, the Financial Conduct Authority is one of the UK’s two new financial regulators, which has replaced the FSA.

The alert sets out our expectations where financial advisers recommend overseas properties purchased through Harlequin Property. It also sets out what advisers need to do before recommending an overseas property investment through Harlequin Property.

The full text of the alert can be found here. The FCA’s Harlequin page can be found here.

Since this date, important developments have taken place as follows:

Harlequin wins lawsuit against Padraig O’Halloran by proving Dave Ames is unfit to manage your money

Harlequin & David Ames: Knew sales agents were lying to investors.

David Ames: Stupid? Crooked? …or smart like a fox?

Would you trust your money to a man so foolish that he paid tens of millions of dollars to a building contractor without signing a written contract?

Would you trust your financial future to a man who ‘managed’ investors’ money by holding million-dollar promotional events while not bothering to ask how toilets at the resort could flush if they weren’t hooked up to any sewerage lines? Would you trust a man who was such an idiot that he failed to monitor expenditures vs. observed results on a 100 million dollar project?

An Irish court has just awarded Harlequin Property a rather shameful victory – for in order to achieve victory in the civil lawsuit, Harlequin had to show and admit how much of a trusting idiot is their glorious leader, Dave Ames.

“Harlequin said between 2008 and June 2010 £8.5million was diverted from £34million paid to the contractor to develop the first phase of its flagship resort Buccament Bay, in St Vincent.

The court heard during a 31-day trial there was no written contract and money was diverted into personal accounts of Mr O’Halloran to fund lavish purchases, including a wedding, private jet, a racecourse in St Lucia, a car franchise business and renovations to a rented property on the Sandy Lane estate in Barbados.

Harlequin said during construction shells of the buildings went up but they were not connected to essential infrastructure like sewage, water and power leading to the resort opening late and on a smaller scale.”

“(Judge) McGovern said it was “extraordinary” there was no written contract for such a large development and that turned out to be a “very poor” decision by Mr Ames…”

… from the Basildon News article Harlequin Property wins civil fraud case against former resort builder

Dave Ames establishing a defense against Ponzi charges?

Charles Ponzi never worked for Harlequin… but he could have!

According to the Basildon News, Harlequin and Ames took about 6,000 deposits from investors for off plan resort accommodation at six planned resorts, but built just 300.

Couple those figures with a total failure to account for missing millions of dollars, and you have what is commonly called a ‘Ponzi Scheme’, named after the patron saint of fraudsters: Charles Ponzi. Wikipedia explains ponzi this way…

Does Harlequin’s The Merricks have “full planning permission” or not? We have some doubts…

Dave Ames says Merricks has “full planning permission” …

“Last month, Harlequin’s The Merricks Resort project in Barbados was finally granted full planning permission after years of protracted studies and work. It was initially anticipated that this process would be much quicker, but Harlequin has always kept purchasers updated with progress.”

Financial Times Adviser, Beleaguered Harlequin owed £30m by property buyers April 24, 2013

“Harlequin is delighted to announce that last week it received full planning permission for The Merricks Resort project in Barbados. There are normal conditions attached to the permission and our team is now working to ensure we have full compliance to allow us to commence works.”

Financial Times Adviser, Harlequin halts construction amid £9m legal battle April 9, 2013

BFP’s old friend St. George’s Dragon checked personally at the Planning Office and is not so sure…

Mr Ames announced at the investor meetings that Harlequin had received full planning for Merricks. I admit that I was skeptical about this so I thought I would drop into the Barbados Town & Country Planning Office this afternoon to check. It is possible for members of the public to check applications. The information you can see is limited, though.

Regulatory Legal met with David Ames & Harlequin – What now?

“The Harlequin Investor Group met with David Ames in the afternoon of the 22nd April 2013.“

Date: Mon, 22 Apr 2013 22:06:21 +0000
From: mail@harlequininvestorgroup.co.uk
Subject: Harlequin Investor Group – Meeting with David Ames – 22nd April 2013

Network Email

All,

The Harlequin Investor Group met with David Ames in the afternoon of the 22nd April 2013.

•3 investors and 2 Directors from Regulatory Legal met with David Ames.

The meeting was conducted cordially and respectfully as building a rapport in these difficult times is clearly key.

1.There is no doubt in the minds of those attending on behalf of investors that Harlequin is cash starved and requires new investment.
2.The lack of cash in the business is a key issue as without liquidity the business will continue to struggle.
3.The business has a significant number of non-completed contracts, many of which have completion dates which are overdue. In simple terms, the various companies are obligated to repay investors their money back plus 10%. The “repayment overhang”.
4.The business needs to source new monies. This is going to come from either

(a) Investment into the equity of the business

(b) Completions on properties (eg the balancing 70%)

(c) New investor monies

We feel (a) & (b) are the best way forward. The HIG see (c) as unlikely in the present situation.

Harlequin and Almond disasters show we’re great at spin, excuses and damage control – but not so great at preventing the damage

Almond Beach Village a study in how government loses credibility

Adrian Loveridge, small hotel owner – now selling!

I would like this week to stay on the subject of transparency and communication in the tourism industry and the underlying speculation, misunderstanding and consequential harm that can result by not ensuring these virtues are carried out successfully.

In both major printed newspapers last Sunday was the announcement of an auction, set to take place the following Saturday of many ‘goods and chattels’ of the Almond Beach Village which closed its doors, just two weeks short of a year ago. Yet in another arm of the media just a few weeks ago, under the banner headline ‘Buying back’ we were told that of the four options on the table, ‘Prime Minister Freundel Stuart will sit with his Cabinet to agree to buy back Almond Beach Village and its brand for almost $110 million’.

The article went on, ‘The plan, being piloted by Minister of Tourism Richard Sealy, calls for a US$10 million refurbishment project, after which the sprawling 400-room facility will be turned over to former staff, who have submitted a plan to operate it’.

The purported logic behind choosing this fourth option was justified by the time the property could be out of service, citing the other three alternatives as ultimately taking too long to implement. Other verbatim quotes include ‘In view of the urgency of this need, it is now proposed that Government seek to immediately acquire Almond Beach Village’ and ‘with a view of reopening in an effort to supplement room stock for 2013 and beyond’.

In the scheme of things, perhaps during the little under three months since these statements were made, so much could have changed. But surely you would in the interests of all those it could effect, least of all the severed staff, explain to the public what is now going on?

The first question would be, that if you were seriously intent on re-opening the hotel in the shortest possible time, why would you be auctioning all or part of  the components that make it operational? Again, it is a classic example of lugubrious communication with not just the industry, but also the taxpayer who clearly would have to pay the bills if the Cabinet’s decision was invoked.

“Once again, it’s needless damage control when this scenario could have been entirely avoided.”

Harlequin saga known to government for years

And finally, I would like to finish this week on the subject of the Harlequin saga. At first I was going to describe it as the Harlequin debacle, but there has been nothing sudden about this whole sordid affair as the political administration have been aware of it for years.

Millions of Dollars of unpaid bills to contractors, suppliers, salaries  a quoted ‘$80,000’ alone to the NIS and we have not even been told if there are other uncollected obligations, like land tax or VAT. Add to this the loss of possible profits to the private sector, income tax and NIS contributions, corporation tax, compounded by payment of unemployment benefits as a result, exacerbates the situation.

This at a time when legitimate small businesses like ours are owed tens of thousands of dollars in outstanding VAT refunds for over two and a half years.

I really hope Government will learn something from this. It is long overdue that due diligence checks are a prerequisite to granting planning permission and ensuring legally, all ‘investor’ deposits are held in escrow pending an actual title sale.

Once again, it’s needless damage control when this scenario could have been entirely avoided.

Harlequin: The promises and the reality

Harlequin & David Ames: Knew sales agents were lying to investors.

The promises!

David Ames pumped a computer generated paradise and a Ponzi pyramid scheme that required ever more ‘investors’ to keep it going.

The Reality!   (click on photo for large size)

The Merricks, Barbados

Abandoned a few weeks ago. Now a visual blight on the coast because our Barbados politicians let it happen for a few dollars and a glass of champagne or two.

(Big shout out to a loyal BFP reader who took the photo. See you at Marcia’s Place, Oistins on Friday night!)

Lawfirms inundated with victims

“Law firms Kobalt Law, Carter Lemon Camerons and Regulatory Legal have been inundated with calls from investors for advice over their Harlequin holdings.

Nicolette-Elizabeth Crozier, spokesman for CLC, said a series of meetings has been set up in its London offices throughout April for those parties who have been affected or concerned.

She said: “Clients will be attended by one of the senior lawyers who specialise in civil fraud claims.”

Investors attending the free initial meeting are required to bring copy documentation prior to attending to enable CLC to provide case-specific advice.”

… Complete Financial Times article: Law firms inundated with Harlequin Property calls

Patrick Souiljaert: “I am making this video to warn people and to help people. Do not give any money to Harlequin”

We’ve been publishing way too much stuff about Harlequin lately only because we foresaw what was happening many many months ago and we know that it will be a huge scandal.

That said, I had to post this YouTube video of Patrick Souiljaert.

YES… Harlequin/Ames did this to the poor man, but so did the regulatory bodies and governments who gave Dave Ames what he needed to carry on his scheme for so long.

Harlequin Legal Survey – Results to be published here

Gareth Fatchett of Regulatory Legal Solicitors

Lawyer Gareth Fatchett and Regulatory Legal Solicitors are conducting a survey of Harlequin ‘investors’. The results will be published here at Barbados Free Press, and we understand that Mr. Fatchett will be making additional recommendations based on the results.

We encourage readers to head on over and take a look, and then make your own decisions.

After all, we at BFP didn’t invest in Harlequin and I can’t say we know of any Bajans who did. That might have been a flag for foreign investors or a question they might have asked. Too late now to ask “Have any locals invested?”, but next time maybe!

Harlequin Investor Survey

Prime Minister Ralph Gonsalves: How many travel writers will you jail?

St. Vincent’s racist Prime Minister is on the record very upset that two BBC journalists ‘snuck’ into the country by telling Immigration authorities they were visiting as tourists when they were really working on a story about Harlequin and Dave Ames. Had the BBC journalists been filming a feel-good travel or investment article, Gonsalves wouldn’t have had a problem with them.

Too bad the BBC story was about how Harlequin collected hundreds of millions of pounds from British pensioners but only built a handful of promised holiday homes before running out of money.

Gonsalves threatened that Panorama tele-journalists Paul Kenyon and Mathew Hill committed crimes punishable by imprisonment.

No word on what PM Gonsalves thinks about Harlequin’s Ponzi scheme, but he is sure upset at the reporters for mentioning it!

How dare dem bloody reporters come snooping around and then expose the story of how SVG  and its politicians let a twice-bankrupt double glazing salesman get away with using the country to promote a pyramid scheme!

One problem though: does Prime Minister Gonsalves intend to apply the same rules to every travel journalist who comes to SVG as a tourist and then writes nice things about the island? Or is Gonsalves only concerned about the law when investigative journalists expose the truth?

If Prime Minister Gonsalves wants to put some journalists in jail he should start with every travel and finance writer who took a free trip from Harlequin and declared they were on holiday when they arrived in SVG. They are the ones who printed the flowery stories that set the trap for thousands of trusting Britons to lose their pensions. If any journalists deserve jail, it is that bunch.

Of course, it’s a good thing that the BBC journalists are of the white race because Prime Minister Ralph Gonsalves is probably going soft on them. You see, Ralph Gonsalves is a racist who dislikes mulattos and brown people – and said so.

Further Reading

I-Witness News Citing possible jail time, BBC reporters staying away from SVG

Cartoon: SVG journalist Kenton X. Chance with PM Gonsalves. See BFP’s More WikiLeaks hit the fan!

Harlequin Properties stunner! “No agent confirmed Harlequin’s land holdings or company information” SIPP-Pension investors advised to act immediately

“…the due diligence undertaken was the brochures, sale presentations and (free) trips to St. Vincent and the Grenadines.”

“SIPP Investors / Pension Transfers would be foolhardy to wait as Professional Indemnity Insurance stops immediately upon an insolvency procedure.”

Regulatory Legal Solicitors special report posted on Barbados Free Press

Harlequin investors are sure to be flabbergasted by today’s posting at Barbados Free Press by UK law firm Regulatory Legal Solicitors and their leading lawyer Gareth Fatchett. Mr. Fatchett was in the news lately as he was successful in achieving some kind of settlement for a handful of Harlequin victims.

Today’s Regulatory Legal Solicitors posting alleges that none of the agents advising folks to invest in Harlequin took the trouble to confirm that Harlequin actually held the land it was selling. No sales agent went to the trouble of obtaining company information about Harlequin’s Caribbean operations. And if you want to talk about “Due Diligence”, the agents confined their research to brochures, Harlequin sales presentations and (presumably free) trips to St. Vincent and the Grenadines.

Throw in free drinks and a few “hostesses” and Bob’s your uncle… the agents were ready to sell Harlequin and at a tempting 30% commission at that. (Not that we’ve heard of Harlequin doing the “hostesses” thing, but this is the Caribbean ya know!)

Master Agent suspends Harlequin sales

The master agent has apparently stopped selling Harlequin so we’ll have more on that in a bit. That sounds important to us because once the sales stop, how can Harlequin sustain current operations even if they scale back? We’re not even talking about building and new construction, just keeping the place open. There’s no staff worth talking about at the Barbados operations, and that is worth thinking about. Was the master agent “TailorMade” ? Can someone advise? See IFA Online’s article Harlequin distributor pulls plug on new investment.

Mr. Fatchett advises SIPP Investors and Pension Transfers to take action immediately because if Harlequin goes insolvent, that is the the end of Professional Indemnity Insurance. Complain now and if it all goes for a fall, the agents’ insurance might cover something. Wait… and, well, the lawyer doesn’t say other than the agents’ indemnity insurance ends but you can read between the lines for yourself. The post also provides advice for other classes of Harlequin investors, so have a read and make up your own mind, folks!

Discussion in the Comments Section

We’re going to make this post the current place at BFP to discuss the Harlequin situation, so join in and please remember to be respectful to each other and also watch the language, okay?

To keep all current discussion in one place, we’re also going to close off comments on previous articles and direct people here. That will take some time so please be patient.

Marcus @ BFP

As posted at Barbados Free Press by Regulatory Legal Solicitors…

Following the court hearing last Thursday, we are now in a position where we understand the full extent of the land holdings and build costs for the various Harlequin projects.

The court hearing last week resulted in a settlement for our clients. The terms of which are confidential.

A few things are very clear :-

1. No agent went to the trouble of obtaining confirmation as to the land position.
2. No agent went to the trouble of obtaining Caribbean company information.
3. Some of the SIPP providers in the main relied on an external due diligence process in 2010 & 2011. We have confirmation

We have both the land acquisition schedule and an affidavit from the new Harlequin accountant setting out the build costs etc. We are currently running the maths to work out.

HMSSE turnover 2006 – 2011
-less land acquisition costs
-less commissions
-less building costs
-less overheads

This should give us an indication of the actual position of the group. There is no evidence of external investors (into the equity of the business) and no evidence of any development finance.

Once again we find it remarkable that agents / IFA’s / SIPP’s have not seen this. These are accounting basics.