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Landsbanki fails to transfer Equity Release cases to Luxembourg
It has been a while since our last post, but things have been fairly quiet in the litigation front, save for Landsbanki’s cases.
Undeterred by recent rotund judicial response against Equity Release contracts, liquidators for the Icelandic defunct financial predator remain undeterred and a still trying to collect their investments or, if needed, steal pensioners’ properties from under their feet.
For Landsbanki, cunning has become a second nature and consequently, their very latest devious strategy is to contest the jurisdiction of Spanish Courts in favour of the bank-friendly tribunals of Luxembourg, invoking EU-bankruptcy laws.
So far though, ERVA lawyers have managed to throw out no less than 8 motions filed by Landsbanki to have the cases relocated to Luxembourg Courts. The Courts involved are in the Malaga, Almeria and Alicante provinces.
2 further motions were accepted by the Courts but are likely to be reversed on appeal.
On finding in favour of the victims of the equity release fraud, the Courts upheld existing case law on the matter (two rulings of the Court of Appeal of Malaga of 2013 and 2015) as well as legal precepts invoked by the counsel of the victims.
Specifically, the Courts have convened that:
- EU-bankruptcy laws do not apply to contracts signed by consumers, who still have the right to choose to litigate where they live.
- EU-bankruptcy laws do not apply to legal agreements or contracts that were entered with the company prior to it becoming insolvent.
- Spanish laws grant exclusive jurisdiction to national Courts where dispute over property registered rights is concerned.
OLD MUTUAL INTERNATIONAL (ISLE OF MAN) LOSES JURISDICTION BATTLE
A very worried Old Mutual International Isle of Man has lost its bid to have the Spanish Courts deny jurisdiction to judge the illegality of the “Executive Investment Bond”, as reported by the El Confidencial online newspaper., despite an anti-suit injunction issued against the claimants in Spain, their lawyers and any other person that was made aware of the injunction to coerce them into dropping the case in the Mediterranean country.
A great post on this breakthrough event can be read on Angie Brooks’ latest blog post.
Below is an online translation of the article, as published yesterday.
The tiny Isle of Man challenges Spain: jail for suing its firms in Marbella
A judge threatens to imprison an expatriate couple who have filed a Court case on the Costa del Sol to recover a failed investment. The threat can be extended to lawyers and court staff.
Photo: The Isle of Man, photographed from the satellite by Google Maps.
RAFAEL MÉNDEZ
TAGSMARBELLA
READING TIME5 ‘
23.04.2018 – 05:00 H.
The Isle of Man is a small ‘offshore’ territory between Ireland and England. It does not belong to the EU, but to the United Kingdom, which provides defense and foreign policy. Despite having only 75,000 inhabitants, it has shown pride. At least one of its judges, who has threatened a group of British retirees who sue in Marbella against one of their companies, Old Mutual Isle of Man, which they accuse of tricking them with a complex financial product – another one – sold to retirees Britons on the Costa del Sol. According to the judge, if they go ahead in Spain, they face imprisonment or seizure of their property in the United Kingdom, and so do their lawyers and even the court staff.
The Costa del Sol is the paradise for British scams. Tens of thousands of expatriates live in its bubble, without knowing the Spanish language or laws, and often trust compatriots and their financial products. Some have suffered the rigor of the Spanish pickax, others hired reverse mortgages with Rothschild who have ended up in court and others left their savings in the hands of Naughty Nigel, a rogue poker player who said investing in an eye bag with an eagle eye .. There are countless examples.
The Costa del Sol is the paradise for British scams. Tens of thousands of expatriates live in its bubble, without knowing the language or the laws
Others invested in Old Mutual Isle of Man, an insurance company that sold them a complex financial product from Man, an offshore territory with thousands of companies. When the investment went bad, they resorted to the Spanish courts, which have condemned banks and financial companies to return the money as soon as it was proven that the client’s level was that of an average investor.
So did an expatriate couple, journalist and physiotherapist, based in Marbella. On July 31 last, they filed a lawsuit claiming the nullity of life insurance with Old Mutual in a court in Marbella. His lawyer, Juan Martínez Soler, Lawbird office in Marbella, argued that the Isle of Man is not EU territory and although the contract stipulated that the differences would be resolved there, that clause is null, as many abusive in these contracts.
In the lawsuit they argued that Old Mutual was never authorized in Spain to operate as an insurance agent despite offering them from an office in Marbella through mediators such as AFS Europe Alliance. According to the document, “the information available to the public regarding the authorizations to operate in Spain is objectively false.” ASF Europe Alliance, which traded them, is registered as an advertising company, but neither the CNMV nor the general insurance directorate had evidence of them, as the plaintiffs put it.
They had contracted in 2011 a policy called ‘executive investment bond’, a life policy in which, when the insured dies, the beneficiaries of the insurance receive the investment plus 1%. In total, he invested 688,000 pounds sterling (about 780,000 euros), from which he withdrew 490,000 pounds, for which he claims the 198,000 pounds (207,000 euros) that he lacks. In the lawsuit, the investors maintain that they do not come to appreciate how Old Mutual moved money – that would be “how to try to establish the malpractice of a false surgeon” – but that it did not have any permission to operate in Spain. They claim that the contract was abusive, by imposing a judge on the Isle of Man and not in Marbella to settle the disputes.
In addition, the insurance law establishes that “contracts made by unregistered entities, such as Old Mutual in Spain, will be null and void”. The Marbella court admitted the claim and the slow pilgrimage of these things began. Until then, it would be another case of British claiming on the Costa del Sol money lost in strange offshore investments (there are Danish banks and companies based in Gibraltar in similar lawsuits).
The insurance law establishes that “contracts made by unregistered entities will be null and void”
But last January the script took an unexpected turn. Old Mutual filed its own brief in a court of the Isle of Man to stop the legal proceedings in Spain. And they gave them the reason. On January 31, the high court of the IBut last January the script took an unexpected turn. Old Mutual filed its own brief in a court of the Isle of Man to stop the legal proceedings in Spain. And they gave them the reason. On January 31, the high court of the Isle of Man issued a criminal warning advising the marriage that, if they followed their suit in Spain, they could be convicted “for contempt, being imprisoned, fined or having their property seized.”
Not only that, but the judge warned that the same could happen to “any other person knowing this order helps” the plaintiffs. Ultimately, this also applies to Spanish Justice personnel. “It’s absurd, the Isle of Man threatening the Spanish court with criminal actions, it’s never seen”; reasons Antonio Flores, director of Lawbird. The Marbella court is now analyzing the jurisdiction over the case.
A spokesman for Old Mutual said via e-mail that they are not trying to dissuade anyone from the lawsuit, but that it should be done on the Isle of Man: “Old Mutual International is not trying to prevent the lawsuits from continuing.” The lawsuit only affects where the lawsuit should look , and the high court of the Isle of Man has ordered it to be on the Isle of Man. Any subsequent risk arises from the continued refusal to comply with a Supreme Court order.This rejection is regrettable, but has nothing to do with Old Mutual International “
Nykredit and Sydbank Cheated Foreigners with Mortgages Worth Millions
Two Danish Companies persuaded British property owners to take out mortgage loans they could not repay
Following the Appeal Court ruling against Nykredit and Sydbank where both defendants have been branded “clandestine operators” for operating without a license, Spanish national press have extensively covered this extraordinary story of fraud and deceipt.
The following media have written about this deception:
SLM Loses Again: Appeal Court reverses Court of 1st Instance Ruling
The Appeal Court in Malaga has ordered the cancellation of a mortgage loan that was granted in favour of Surrenda Link Mortgages (SLM) on grounds that this company offered loans for investments but also, were linked to the management of the those investments when they were not licensed to do so, in Spain. The ruling reverses a previous ruling by a Court in Marbella that ruled that SLM was not at fault.
SLM acumulates several adverse rulings, in spite of which they keep insisting that their Turnk Key Mortgage is and was lawful.
The claimant was represented in Court by Salvador Martinez Echeverria.
BREAKING NEWS: Malaga Appeal Court Demolishes Nykredit & Sydbank’s Equity Release Mortgage
The Malaga Appeal Court has reversed an unjust Court of First Instance ruling and granted relief to two British pensioners victims of the “Spanish Equity Release Package” (SERP), peddled by Nykredit Realkredit A/S “and Sydbank (Schweiz) AG and sold by Offshore Money Managers.
The following is a summary of the ruling, received today:
- Foreign pensioners were lured to Offshore Money Managers Equity Release proposal due to its attractive IHT reduction benefits.
- Nykredit and Sydbank associated themselves to produce the SERP.
- Sydbank was not authorized to operate in Spain, in spite of which they opened -in contravention of mandatory laws- an office in Fuengirola.
- Nykredit had no authorization by the Danish regulator to grant loans in Spain for investment purposes.
- Chrystel Mark Hansen (mentioned twice) and Karen Egaa’s testimonies, on behalf of Nykredit, have been described as being extremely unreliable, when not openly untruthful.
- Nykredit’s forensic expert’s conclusions are challenged extensively for being grossly biased in favour of the lender, besided deliberately ignoring fundamental aspects of contractual arrangements.
- Nykredit’s mortgage loan is rendered null and void and Sydbank (Switzerland) is ordered to pay back 462,000 Euros to the claimants.
The Court findings represents a great disaster for both these banks because their conduct with existing clients is reported as irregular and dishonest, and to that effect imposed the maximum possible penalties in law.
(we will expand shortly)
Court Orders Stay on Nordea’s Foreclosure Proceedings
An Estepona Court has order an indefinite stay of proceedings in respect to a foreclosure case brought by Nordea against a Danish Equity Release victim.
Nordea’s aggressive stance was met with resistance from lawyers acting for the customer, who invoked the abusiveness of the early maturity or redemption clauses and the pending resolution by the European Court of Justice, who will decide on their potential illegality.
CHANGE OF FORTUNES: BANKS SET TO LOSE MILLIONS WORTH OF EQUITY RELEASE CONTRACTS
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 ‘mitigating’ 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.
BILBAO APPEAL COURT UPHOLDS THE ILLEGALITY OF THE SLM MORTGAGES
The Appeal Court in Bilbao has upheld last year’s ruling by the Court of First Instance 11 in Bilbao and determined that mortgage loans granted by Surrenda Link Mortgage (SLM) to invest with Premier Group should be declared null and void.
The appeal ruling confirms that operating without a license is a grave infringement of one mandatory regulatory framework of great importance: the financial services sector. As a result, they order the maximum possible sanction -nullity and voidness- to those illegal activities. For the Appeal Court, acting in this manner
deprived the claimants of any guarantees, which the current legislation envisages to ensure there is complete information with regards to the evolution and situation of the financial entities so that, in this respect, they can limit or prohibit those practices or deals that increase the risk of insolvency or lack of liquidity, and reinforce the resources required to attend to those risks, thus avoiding harm to applicants…Preamble of the Stock Exchange Act of 26/1988).
The Appeal Court goes further than the original ruling and fully corroborates and endorses the allegations of the claimants that the widely publicized Inheritance Tax benefits are false, emphasizing that such conduct is deceitful.
Finally, the higher Court reaffirms the allegation by the claimants that they had no financial experience, a fact not challenged by SLM.
SLM’s choices are to accept the ruling and not interfere in the cancellation of the mortgage loans or explore filing an exceptional appeal with the Supreme Court, a possibility only accepted in very specific cases.
Litigants expressed their satisfaction over the performance of their lawyers Lawbird Legal Services.
BREAKING NEWS: the BILBAO APPEAL COURT UPHOLDS THE ILLEGALITY OF THE SLM MORTGAGES
BREAKING NEWS
The Court of Appeal in Bilbao has dismissed totally the appeal launched by the SLM (Surrenda Link Mortgage) Madrid-based lawyers and upheld the first ruling of the Court of First Instance 11 in Bilbao.
SLM’s choices are to accept the ruling and not interfere in the cancellation of the mortgage loans or explore filing an exceptional appeal with the Supreme Court, a route only accepted in very specific cases.
More to follow in the next post.
Founder Member and President of ERVA celebrates Court victory over DANSKE BANK LUXEMBOURG S.A.
Euan Armstrong, member founder and current President of ERVA, has managed to persuade a Court in Coin to dismiss loan foreclosure proceedings brought by Danske Bank International S.A. in 2010.
The victim of vicious luxembourg-based Danske Bank has fought relentlessly during 7 years to stop the lender from taking his home, after having been cheated by the bank’s staff -at one time based in Fuengirola- who sold him an Equity Release loan named as “Capital Assurance”.
In spite of being unsuccessful in 2 criminal actions, one directed to the bank’s representatives for aggravated fraud and a further one against a Coin-based Judge for negligence, the Superior Court of Justice in Granada -when dismissing the latter complaint against the Judge- deemed that Mr. Armstrong was nevertheless right in denouncing irregularities in the proceedings and observed that a fresh review of the case was necessary.
Finally, a newly-appointed Judge in Coin decided that Danske Bank’s position was untenable and threw the case out.
This ruling can be appealed (est. time 1.5 years to resolve) but it is unlikely it will be upheld.
Meanwhile, Euan is bringing new proceedings against Danske Bank International S.A. to nullify the Equity Release product and invalidate the mortgage loan.
