Archives for December, 2012

How Top Law Firm Changed Report to Suit Equity Release Banks

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A while ago we wrote about an opinion by top firm Ur√≠a & Men√©ndez,¬†who had regarded that the Equity Release scheme could be a “sham” in the eyes of the Tax Office.

Surprisingly, that same firm must have received a phone call from one of the banks -we believe it to be Rothschild- demanding that the paragraph that insinuated that the scheme could be deemed a fraud was taken out.

Et voil√°, no sooner had it been requested by the keen bank than it was removed by the firm, who then issued a new report, the one we see attached.

Too see the changes, compare it to the unmanipulated report (paragraph 6).

ERVA will formally write to Uría & Menendez in the new year to confirm ths very worrying information.

How Rothschild Dictated Terms of Business to Hamiltons

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The below statement has been made by an Hamilton’s ex-employee who has confirmed his willingness to cooperate in a potential Court case against Rothschild.

For legal reasons, his name and other personal circumstances have been removed.

It’s credibility can be proven by reference to other almost identical statements, promotional literature and other means of proof;there is total consistency in the “modus operandi”, names, premises on which the product was sold, alibis used by the bank to attempt to excuse any liability etc.

 

In 2002 moved to Spain.

We bought a home in Estepona and took a couple of months to settle in.

I responded to an advert in the SUR in English, for FPC ( Financial Planning Certificate) qualified advisers for Hamiltons based in La Cala de Mijas. I contacted Hamiltons and met with the owner Dean Murphy and the manager Peter Hardy.

The interview went well with the two individuals extolling the virtues of an IHT avoidance scheme funded by Rothschilds and the Premier Investment Company based in the Isle of Man.

The basics were simply a debt in the form of a mortgage with Rothschilds was created to mitigate the amount of any inheritance on death of the property owner. Any beneficiary would inherit the value of the asset less any debts and therefore reduce any IHT demand, which was said to be very onerous in Spain.

The mortgage funds would be placed in an offshore investment fund out of the reach of the Spanish Tax authorities. The fund had an historic performance well in excess of the mortgage charge rate, so technically the investment return paid the mortgage and any surplus growth would be added to the fund or the borrower could draw down any surplus to supplement income.

This was not a new Rothschilds scheme, the product has been in the Rothschilds portfolio for many years, there is mention of this scheme all over the internet dating back years.

I was offered a job and required to attend a training session, which was attended by Steve Dewsnip Director Rothschilds Guernsey and  Charles Walton Premier Fund managers IOM.

During this meeting I became aware from statements made that the scheme had been put together by Charles Walton the fund manager with Premier (who subsequently became the fund manager for all the other funds which followed the switch from premier to the many other funds, none of which made the returns quoted to clients)

Charles Walton was a long time friend of Dean Murphy.

Dean had worked in Dubai where he operated an investment company serving ex pats who lived and worked in the tax free environment of Dubai. During this time he had met Charles Walton.

I was informed that the IHT scheme had been put together by Charles Walton and he had approached Rothschilds as a funder along with Surrendalink Mortgages as an alternate funder.

Charles Walton explained the scheme in detail, how the money was relased from the property by way of a mortgage and the funds would then be invested offshore outside the reach of Hacienda.

THE CLIENT HAD NO CHOICE REGARDING THE INVESTMENT FUND. THE FUND WAS VETTED AND APPROVED BY ROTHSCHILDS AND THE LOAN WOULD ONLY BE GRANTED ON THE STRICT UNDERSTANDING THAT THE FUNDS WOULD BE INVESTED WITH THE FUND DICTATED BY ROTHSCHILDS.

We were never given a choice of funds to pass on to clients.

When the fund was changed due to poor performance, we could not sell the new fund until Rothschilds had approved the fund. HOW CAN THEY SUBSEQUENTLY CLAIM THEY DID NOT GIVE INVESTMENT ADVICE……………ABSOLUTE RUBBISH, THEY DICTATED THE FUND FROM THE OUTSET.

My argument has always been that the funds were placed into experienced investor accounts in the Isle of Man, with no regard to the clients knowledge of experienced investor funds.

Steve dewsnip then took over the meeting extolling the history of Rothschilds and the fact that they had survived on reputation and would not do anything to tarnish that reputation of the bank. We would never read the headline ‚ÄúRothschilds evicts Spanish resident‚ÄĚ, it just would not happen.

There were at least 10 people in the training room who heard this statement, in my case I attended 3 meetings with Steve Dewsnip/ Charlie Walton where this statement was made.

I will also state for the record that whilst there was several members of the sales force who were financial services experienced and qualified in the UK, there were other sales people who had no experience in Financial Services experience who were trained in house on this product.

The scheme seemed genuine and was supported by opinions from Ernst & Young in Madrid and Uria & Menendez, Abogados in Madrid.

We were given point of sale material which included these opinions all given to support the scheme.

We were given qualified appointments, met with clients in ther home, instructed them of the IHT liability in the event of death, informed them of the scheme to mitigate IHT, signed them up and handed the paperwork into Hamiltons who sent it off to Rothschilds.

Once approved we were required to meet with the clients and convey them to the lawyers in Malaga, lawyers appointed by Rothschilds, the client was given no choice ( this would not be allowed in the UK) The Notary would attend the lawyers office and Notarize the loan documents.

The clients never saw any money it went from the bank straight into the investment fund.

The issue in every case was the poor performance of the investment fund. With one poor choice being followed by another then another then another, none of which were in the clients control. Every time the fund crashed Hamiltons sought leave of Rothschilds to switch the fund.

In the UK if you move a fund, you are paid a commission, I would think Hamiltons were earning commission time after time, switch after switch.

If the funds had performed we would not now be talking.  I have always maintained that the way to the table with Rothschilds is to pursue the Investment advice route.

Barclays Bank were recently fined £30 million and ordered to compensate all investors who took advice on a Barclays nominated fund that had an elevated element of risk, when the client were risk averse.

The clients could only invest where Rothschilds dictated, they nominated the fund, approved the fund, they must be liable for the fund performance and the current situation culminating in repossession.

This is a true statement, let me know if you require any further information

Regards

 

We welcome any further ex-Hamiltons or Ex-Henry Woods sales reps to come forward with a statement, each of which represents a nail in the coffin for the Equity Release obnoxious products.

Rothschild Equity Release Claim Postponed Due to Abusive Law

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Lawyers acting for Rothschilds victims have had to postpone the filing of the claim due to the sudden implementation of a new regulation that makes most litigants, residents or not, to have to pay a fee for filing a claim in Spain.

It is almost certain however that claimants will qualify under “legal aid” provisions, with a view to being exempt from having to pay these extortionate and extremely unpopular measures.

No sooner have the claimants been cleared of having to cough up to have justice served, the writs will be submitted with the Courts.

Claimants against other lenders will also be requested to submit income documentation to their lawyers so as to qualify for the exemption.

Criminal Misleading Publicity: Deceitful Information on Brochures

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The Granada Provincial Audience, in a strikingly similar case to the misleading Equity Release cases, found that 2 businessmen were criminally guilty of misleading publicity and were served with a criminal conviction, albeit no one spent time inside.

The Court found that:

  • 2 Granada businessmen offered an course named “Bachelor in Tourist Business Administration”, indicating that it was sponsored by the University of Hertfordshire and that, on conclusion of the course, they would be homologated by the said University.
  • Lured by this information, a few dozens of students signed contracts¬†on that understanding.
  • At the middle of the course, a number of students started to doubt the information provided by the businessmen as a result of which, they wrote to the University of Hertforshire for confirmation of the promised homologation.
  • A few days later, the British University wrote back denying there was any collaboration agreement with the 2 gentlemen running the dubious course.
The criminal conviction also secured a civil liability pronouncement, ¬†as a result of the theory of responsibility “ex delicto” which says that, if a criminal wrong causes monetary damages, the Criminal Court is entitled to award damages to the claimant.
In this case, the defendants were obliged to reimburse the cost of the spurious course. 

Malaga Court Accepts Misleading Advertising Case Against Nordea Bank Luxembourg

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The Malaga Mercantil Court accepts a claim brought against Nordea Bank Luxembourg for misleading advertising after having verified, ex officio, that the document complies with procedural rules and regulations on the matter.

¬†Service of process will now follow upon which, the defendant will have 20 days to prove that the rubbish that is still on offer on the Nordea website is entirely correct, accurate and not misleading; Mmmm, tough task for the Madrid high-flying legal-eagle snobs…

Let’s just remember one of many:

We are proud of our NORDIC VALUES, they differentiate from our competitors-

Latest news: the Somali Bankers’ Association has taken exception and they too wish to contest it vigorously.

Documents

The One Manner to Save on Taxes: Hamiltons & Rothschild Equity Release

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Can we really add anything to this?

No, not really, it speaks for itself!

 

KPMG tells Danske Bank Luxembourg to Stop Using their Name

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And so it was, that, in relation to an Equity Release fraud case in Spain against Danske Bank Luxembourg, the defendant held the following:

We conducted our due diligence according to the internal rules and procedures Danske Bank Luxembourg has in place. As part of this process, the Capital Assurance product, sold on the basis of a tax-planning proposition, was fully cleared by KPMG. We therefore reject the claimant’s action for it is groundless, without merit, and we will defend ourselves vigorously.

 

Fully cleared by KPMG? What does that really mean in Danske Bank Luxembourg banking jargon?

Mr. Klaus¬†M√łnsted¬†Pedersen: have you read the attached document by KPMG Madrid, denying that they ever gave the blessing to the cash-predatory tax-evading Capital Assurance Product,¬†ever authorized your company to use their name and in fact, formally requested you to eliminate from the brochure any reference to the product being approved by KPMG?

Danske Bank Luxembourg Capital Assurance: Do Away With Spanish Taxes

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Klaus¬†M√łnsted¬†Pedersen, Managing Director of Danske Bank¬†International (Luxembourg) and the¬†man behind the products developed to provide efficient cross-border tax-planning seemingly ensured that, prior to launching his state-of-the-art Capital Assurance, a thorough compliance job had been carried out.

To that effect he tied up loose ends, dotted the i’s and crossed the t’s, and attended to detail. Because detail mattered.

And to not leave anything to chance, the website conveys a clear message: that tax benefits adapt to local legislation, and to make sure that there is no mistake, such benefits for Spain are confirmed by no less than a Big Four, KPMG.

Spectacular display of Danish efficiency, in case we had any doubts; and not a chance in hell for those who signed up for the Capital Assurance + Spanish Hipoteca, two air-tight contracts drafted by top law firms that are virtually unbreakable.

Such is life.

Or so we thought…

Sparlolland/Finansbanken on Equity Release Sales Techniques

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For Sparlolland, previously Finansbanken A/S, selling a 2,5 million Euros Equity Release product to a Marbella-based artistic painter was a matter of discussion over a cofee, or two, at the Guadalpin Hotel.

We cannot even imagine what sort of bullshit was the poor man fed by Maria Tremurici-Falter, Marbella-based retiree that occupies her time doing anything from advising people on how to multiply their money by making the right decisions¬†to organizing charity dinners, Michael “Mich” Weisz, a man that ran The Mortgage Company and is now awol, ¬†and Pernille Bering, from the bank.

The unfortunate life-changing meeting lasted, according to the bank, between 1.5 hours and 2 hours, time enough for a painter devoted to German expressionism to digest a course on Danish-bond historic performances, Luxembourg-based Lex Life insurance wrappers taxation and the real meaning of Security Coverage Ratios.

Next morning, he was sitting in front of a Notary Public, these useless social parasites who actually do manage to do their work correctly: check that your face matches that of your passport.

SPAIRS: Cunning Names and Henry Woods

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SPAIRS , the Spanish Property and Income Release Scheme, concocted initially by Charles Walton, from Premier Group, and later adopted by greedy banks and rogue IFAs such as Henry Woods, caused extensive havoc. 

Reading the attached article, it compares well with that of Dewsnip, from Rothschild (published on the post of the 6th December) , from which it has taken full inspiration; in fact, we think that either party should take action for plagiarism.

 

 

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