Tag archives for SITIRS Equity Release

CHANGE OF FORTUNES: BANKS SET TO LOSE MILLIONS WORTH OF EQUITY RELEASE CONTRACTS

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Landbanki Luxembourg

A recent ruling by the Appeal Court of Bilbao -confirming an earlier ruling by the Court of First instance-is to set the ground for future cases on the so-called Equity Release mortgage loans.  Three Judges in the Basque High Court have ruled that banks -and by extension any other financial services company- that do not have a valid operating license will see their agreements declared null and void, be it mortgage loans, investment contracts or any other.

In late 2014, 20 pensioners (mostly British) bought an action to set aside 12 equity release mortgage loans -worth 6 million euros- against SLM, a Cheshire-based lender. The lender had not secured the mandatory regulatory license although they did warn they had no license to operate in Spain as, according to them, they were only providing lending for customers seeking to raise cash on their homes.

Now, the Bilbao Appeal Court has said the warning was no ‚Äėmitigating‚Äô factor because it misled the claimants into believing that the loan they were sold was financially secure when, in fact, most of it was invested via unregulated Isle of Man-based-dubious Premier-Group.

The relevance of the ruling, which brings an end to the suffering of the victims of this scam, is twofold: it nullifies contracts issued by unregulated companies and it fully endorses the allegations of the claimants that the widely publicized Inheritance Tax benefits were false, emphasizing that such conduct is deceitful and fraudulent.

It is believed that defunct Luxembourg-based Landsbanki Bank had lent a staggering 100 million euros in Spain to reduce death duties that thankfully will be difficult to recoup, whilst Rothschild Group could be set to lose 40 million Euros.

 

The Lies of The Premier Group (Isle of Man) Limited Uncovered

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The previous post published on ERVA explains that Michael Richardson, founder of the above 2 companies, does not hide the fact his 2007 company -The Premier Group (Isle of Man) Limited- is the successor of the BVI-based Premier Balanced Distribution Inc.

But now, the Financial Supervision Commission has confirmed that not only did one take over from the other but that they are, in essence, the same firm.

An FSC officer has confirmed, unofficially, the following:

  1. The BVI company’s website was www.thepremiergroup.biz, the same as the 2007 company.
  2. The email address info@thepremiergroup.biz, used by the previous company, is currently in use by the 2007 company.
  3. Until December 2007, the 2007 company used the BVI company’s telephone and fax numbers: +44 (0) 1624 838110 y Fax and 44 (0) 1624 836785.
  4. The 2007 company used the green BVI company logo/branding (above) on its website until‚ĶMay 2010: that’s 3 years after it was incorporated. This is the logo used in the 2004 promotional literature that CAINS says “has nothing to do with its client”.
  5. The Daily Telegraph, among others, confirmed in 2005 that The Premier Group was based in…the Isle of Man.

For CAINS Advocates though they are two totally separate companies with no connection whatsoever, according to their ‚Äúindependent‚ÄĚ report filed with the Bilbao Courts. CAINS says the following in its report:

Nothwithstanding that Cains acts as Isle of Man legal adviser to the The Premier Group (Isle of Man) Limited, we shall act objectively and our statements shall take into account all circumstances which may prove to be favourable as well as those that may cause harm to any of the parties of the proceedings previously stated.

CAINS is employed by the 2007 The Premier Group (Isle of Man) Limited and were also the appointed counsel for the BVI company and they therefore should and could have known that their statement is at best inaccurate and misleading and at worst, fraudulent.

This breach constitutes serious professional misconduct and failure to comply with the principles, rules and regulations of the legal profession in the Isle of Man.

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