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Jyske Bank’s Officer and Gentleman
Exceptional advertising article of Nicholas Wright, Head of Business Development at Jyske Bank Gibraltar.
In it, we can read things like:
The Jyske Bank is renowned for being the cream of the crop; indeed, it includes people who have worked at highly prestigious institutions such as the Bank for International Settlements in Switzerland
Does that include bad crop such as unregulated (now disappeared) partners OMM, who extensively sold equity release to British pensioners and disabled retirees with –obviously- limited income, on fraudulent tax evasion proposals and deceitful regular income promises?
Now Nicholas, why don’t you pull rank and pull your spade out to rip apart equity release contracts that your employer sold largely to British people in Spain?
Documents
Regulators to be Informed of Wrongdoing by Equity Release Banks
Lawyers acting for equity release victims are preparing claims to submit to the different regulators. The following letter has been forwarded to victims of these disgraceful banks:
It has now been 3 weeks since the gathering at the Malaga Tax Office, and we now wish to move forward by writing to the Spanish regulators to obtain a formal opinion on the specific products entered into, with a view to use it in a civil court to obtain a ruling declaring the contracts null and void.
The regulators in question are the Bank of Spain, the CNMV (Comisión Nacional del Mercado de Valores, Financial regulator) and the DGS (Dirección General de Seguros, Insurance regulator), in their respective areas of jurisdiction, since the equity release product is a complex contract (mortgage loan and investment product) that involves activities that fall within the Banks of Spain and the CNMV/DGS remit.
Crucially, the advertising campaign based on tax advantages devised and put into operation by these entities is, without a doubt, the most serious of the breaches, as not only does it promote tax evasion but also, it is based on a false assumption: that you can mortgage your home to minimize certain taxes.
Additionally, we will request an opinion on the following regulatory breaches and their implications:
- The sale of a complex financial investment product that would have required prior acceptance by the CNMV and the DGS, particularly where the proceeds of the investment were not available but created by means of a mortgage loan.
- The extensive use of financial advertising that creates a feeling of “no risk”, projecting messages of calmness, safety and tranquility. This includes even pictures of happy pensioners. Also, failing to indicate the risk in a clear, concrete, simple, transparent and honourable manner.
- The offering of both a mortgage loan and an investment product to pensioners, owners of retirement homes with minimal income (this is what is called as “adequacy” of the product to the risk profile of the client).
- The sale of these products through a network of unregulated unregistered advisors.
It is important to note that the Spanish regulators don’t necessarily know that the above have taken place, unless they are told. In the UK, the regulator (FSA) Consumer Director says in their website:
“If you spot something you think is misleading, we’d like to hear from you. Don’t assume that we’ve already seen it as it is impossible for us to monitor all the adverts and marketing material that is produced. Your feedback will help us protect you.”
As indicated, the aim of this action is to obtain a pronouncement by the regulators where it is established that the financial entities breached substantial regulations and principles, and deceived and confounded their customers. A further aim will be to pursue an enforcement and disciplinary action that could lead to a fine, public censure or, in the most serious cases, cancellation of the firm’s authorization. Once in possession of this report, that is to be based on each individual equity release contract, we will file an action to attempt to void the contracts in the Civil Courts.
Gathering in Malaga an Absolute Success
We can confirm that Monday’s gathering was an absolute success, from a media point of view. Not only has the local press covered it extensively, but also all the large radio stations (Canal Sur, Onda Cero, Cope and Ser) and Canal Sur TV (you may click on the most relevant links below).
With regards to specific purpose of the gathering we must thank the Hacienda staff for facilitating the process of filing the “denuncias”, which was done smoothly and without major problems, providing promptly an electronic sticker receipt. These denuncias will now be processed and grouped presumably under one single case, together with the more comprehensive one filed by Lawbird at the beginning of the event that included extensive tax-defrauding promotional literature (Nordea), website snapshots (now erased from them- Nykredit), instruction manuals (Rothschild), details of unregulated IFAs etc.
We now expect the Tax Office to initiate a full investigation into what is an illicit banking product that promised tax-avoidance and a regular income, but delivered tax-evasion and irreparable financial (and emotional) damage. In particular, the Tax Office would be focusing on the number of contracts signed and whether inheritors of subscribers of these products who have already passed away, would have invoked the mortgage loan charge to reduce the impact of inheritance taxes. We will be in regular touch with Tax Office to provide them any information they may require as and when the investigation is carried forward.
The next stage will now be a denuncia with Bank of Spain, also in their Malaga office. This is also a formal complaint lodge to obtain a ruling condemning these banks for not only inappropriately selling products without any consideration to the individual needs of the customers, but also for deliberately providing false tax information with a view to persuade customers to sign up the products, through scaremongering. We expect the Bank of Spain to act in accordance to EU regulations on the matter as it is this type of behaviour that undermines confidence in the financial services sector.
Note that denuncias with the Bank of Spain will also be lodged individually but grouped by banks, and will comprehend the following:
- Nature, description and purpose of the product, as was sold.
- Non-existence of regulatory clearance by the Bank of Spain to sell such product, either by the Bank of Spain or the CNMV (Financial Investment regulator).
- Non-existence of regulatory clearance to operate in Spain at all (Sydbank for example).
- Relationships established with Costa del Sol unregulated IFAs to sell the products, notwithstanding the statutory prohibition to do so.
- Deceitful selling material utilized to persuade pensioners to buy the product.
Unlike the HSBC, which was fined in the UK for gross misconduct in the selling of investment products, the focus will not be only on the inadequacy of the product, but also on the deliberate falsity in respect of the tax angle and the promised returns.
Some media appearances:
- http://www.dailymail.co.uk/money/investing/article-2127868/UK-expats-face-ruin-Spain-France-duped-bogus-financial-advisers.html#ixzz1rinxrQGf
- http://www.theolivepress.es/spain-news/2012/04/10/expat-victims-of-equity-release-scams-protest-in-malaga/
- http://www.laopiniondemalaga.es/marbella/2012/04/10/treintena-ingleses-estafados-marbella-concentra-hacienda/498644.html
- http://www.malagahoy.es/malaga/detail.php?id=1229600#opi
- http://www.diariosur.es/20120409/local/costadelsol/jubilados-extranjeros-denuncian-hacienda-201204091335.html
- http://www.diariosur.es/v/20120409/marbella/jubilados-extranjeros-denuncian-ante-20120409.html
- http://www.typicallyspanish.com/news/publish/article_34310.shtml
The ERVA Association
Monday the 9th of April Gathering in Malaga
As many of you already know, the ERVA has organized a gathering at the Malaga Tax Office (Avenida de Andalucía number 2, next to El Corte Inglés), Monday the 9th of April 11.30 a.m. (if wish to arrive earlier we will meet in front of El Corte Inglés at 11 a.m.), with the purpose of submitting a tax “denuncia” against the Equity Release banks.
The main aim of this action is to make the Spanish Tax Authorities aware that their Danish counterpart, the Danish Tax Authority (SKAT), as well as the Danish Ministry of Taxation, have already labeled these schemes as fraudulent and started an investigation.
The form below should ideally be printed and filled out by hand, in block capitals, so that it has a more personal touch than a form that only has an original signature. The denunciations will be grouped and Lawbird will attach relevant contractual and marketing documentation we already have, classified by banks.
If you are not able to print and fill out don’t worry, we will take forms that can be filled out there and then.
We will require from you, if at all possible, a copy of the mortgage loan signed with the denounced bank. Failing this, a copy of a “nota simple” showing the mortgage loan registered against it. If you are not able to obtain this, so long as the property details are recorded on the form, we will proceed with filing, and at a later date we will submit the paperwork that is missing.
Also, please bring your passport and a copy.
We expect the Tax office to start an investigation into the activities of the banks because of the fraudulent nature of the proposal, and the loss of revenue as a result. We must not forget that it is almost certain that the tax evasion element of such products has already materialized in some cases, if we consider that hundreds of owners would have been deceived into signing up these products and a few, sadly, are likely to have passed away, some probably due to the enormous stress caused by the actions of the thieving banks.
Please note that this is an important gathering: from the point of the claimant, it is the start of the civil action against the bank in question since obtaining an opinion from the Tax Office is crucial in destroying the validity of the contracts, and from the point of view of the bank, it is the formal communication to the Tax Office of an ill-conceived scheme devised in conjunction with unethical unregistered IFAs, that openly invited customers to violate fiscal laws in Spain (and elsewhere too).
Should there be any change between now and Monday, we will advise by email and also, by publication on the ERVA forum. Any queries will also be responded by emailing myself (or calling the mobile 656 967672), Euan Armstrong (euan@sunnyspain.org) or Ian Sherdley (sherdleys@hotmail.com).
Documents
- Denunciation Form (PDF – 170 kb)
ERVA Discusses the Legalities of the Denunciation to be Lodged at the Tax Office on 9-4-2012 (Video)
Tax Office Building in Malaga
Euan Armstrong and Antonio Flores discuss the denunciation to be lodged with the Spanish Hacienda, that is to be held on the 9th of April 2012, at 12.00 am, in the Delegacion de la A.E.A.T. de Málaga (map). Claimants will gather outside at 11.30 a.m. for a peaceful protest and it is expected that the different press will cover the action.
The denunciation consist of a writ to the Tax Office informing them that the denounced bank(s), with a view to capture new clients, offered a product that supposedly would mitigate the impact of Inheritance and Wealth Taxes when, as it has turned out, actually consisted on a tax fraud proposition for such taxes could have never been avoided.
The writ will be standardized and denouncers will just have to fill out their personal details, the bank involved and the date of signing of the mortgage deed. We will load the denunciation on this website on the following days. Denouncers will be able to fill out the form at home, and bring it to the meeting, or fill it out on day and have it signed.
The only document that will be required is a copy of the mortgage deeds, or escritura de préstamo hipotecario. This can be sent to either Euan or Ian, or can be brought to the meeting.
Danske Bank Luxembourg Agreed to Settle With an 85-year Old British Couple Not Before Extracting an Apology
Klaus “Monster” Pedersen, the same high-flying executive who thought to be above-board to sell his Spanish tax-evading equity release products to old-age pensioners, preferably through Costa-del-Sol financial cowboys, promising them it was a miracle-product (only to later make the advice disappear from the company website), found that further humiliating his victims by extracting an apology was correct, not before taking €300,000 from them.
Humiliator-in-Chief Pedersen had to agree on a settlement after his company was approached by Sharon Bowles, MEP for the victims, but took great offence that the matter had “transpired” because in opaque Luxembourg, where he is based, washing dirty-linen in public was seen as a sacrilege, particularly with tax-evasion being high on the agenda.
Will he be asking for an apology from the largest Danish newspaper, Jyllands-Posten, for stating that they actively promoted tax fraud through Costa-cowboys?
Revealed: Defending Lawyer’s Previous Law Firm Considered Nordea’s Equity Release a Sham
Uria & Menendez, the previous employer of Mr. Jesus Perez de la Cruz, lawyer acting for Nordea, wrote in a 2006 report that coming up with a debt to reduce the value of the property was likely to be challenged by the Spanish authorities because it was a “simulation”. Just as Christen Amby, member of the Danish Taxes Assocation, said recently on occasion of the publication of a series of articles in Denmark relating to a mirror product offered by Sydbank, and in relation to the position of the Spanish Tax Office: “This is cheating the Spanish Inland Revenue”.
We understand that lawyers have a duty to defend their clients, but is it ethical to be on both sides of the fence?
Documents
Spanish Equity Release Fiasco Legal Action – February 2012 Update
Antonio Flores of Lawbird explains the next actions in respect of the Equity Release Fiasco Case. Antonio comments on the demonstration to be held on the 8th of April Monday, at the offices of the Spanish Inland Revenue in Malaga. This will be done prior to reporting/filing a “denuncia” against the banks involved in allegedly scheming, together with unregulated, unqualified Costa del Sol pseudo-financial advisers, to defraud the Spanish Revenue on inheritance and wealth taxes of pensioners, as confirmed by the largest Danish newspaper.
