admin
This user hasn't shared any biographical information
Second Spanish Law Firm Confirms Lex Life Misled the Public
Cuatrecasas, Goncalves Pereira law firm, second by turnover in Spain, has confirmed to lawyers acting for Landsbanki victims that Lex Life and Pensions SA used their name illegally when promoting the Lex Life Capital Assurance in Spain.
According to the deceptive publicity of the ignominious Luxembourg-based company, the named firm had been involved in preparing the sham Equity Release product.
This is the paragraph in question:
Our product, Lex Life Capital Assurance-Spain, has been developed in cooporation (sic) with the law firm CUATRECASAS (www.cuatrecasas.com), “Best Spanish Firm of the Year 2005, International Law Office”.
The advertising also attributed this product the following advantages:
Spanish IHT has a ceiling of 34%, but depending on personal circumstances, the amount can go up by 2.4 times.
The Lex Life Capital Assurance-Spain is an excellent, tax compliant way of mitigating tax exposure and safeguarding inheritance tax.
Cuatrecasas strongly denies any involvement with the above and has confirmed to lawyers acting for the victims that they are considering legal action against the company, or their successors.
Law Firm Requests Baron David De Rothschild Summon
The Olive Press newspaper has published that a law firm acting for equity release victims has demanded that Baron David de Rothschild appears in Court.
Mr. Rothschild, former Chairman of N.M. Rothschild & Sons, is considered to be the ultimate responsible person of allowing the bank’s advertising to be published in this country.
The referred literature includes an open invitation to register a Spanish property with a mortgage loan to, according to Rothschild, reduce Spanish Inheritance Tax.
Article 282 of the Spanish Criminal Code establishes the following:
Manufacturers or traders who make false claims or declare untrue features in their offers or publicity of products or services, so as to cause serious, manifest harm to consumers, without prejudice to the relevant punishment for having committed other felonies, shall be punished with a sentence of imprisonment of six months to one year or fine from twelve to twenty- four months.
The petition for formal indictement and summons has been filed through the Denia Courts, currently investigating a fraud claim institigated in 2011 by Fuengirola firm IURA.
Stephen Dewsnip and Mark Coutanch, both named and charged in the above criminal proceedings, have failed to attend a hearing and as a result, have been issued with 2 warrants.
Rothschild has been eagerly avoiding being linked to fraudulent lending and has denied liability.
List of Owners With A Tax Defrauding Nordea Equity Release ‘Managed Capital Plan’ Contract
Nordea Bank S.A.’s Marbella Representation Office has been busy ‘transferring’ millions of Euros worth of Spanish property to Luxembourg, a tax haven in the heart of Europe. The scheme, know as the ‘Managed Capital Plan’, consists in a ordinary mortgage loan offered by Nordea on their unencumbered homes and the investment of the loan in Luxembourg.
Now, for the first time, those millions of Euros worth of tax evading mortgage loans (according to the Spanish Tax Office) have an owner.
ERVA has had access to a list of property owners in the Marbella area who bought into the Nordea’s scheme. The list was provided to ERVA from a confidential source and has been compiled by accessing Marbella public land registries.
The list includes Marbella property owners who bought into the scheme, for how much and when. It also establishes the date when the property was bought, as opposed to when the loan was taken. One notable client of Nordea is the current Mayor of Marbella, María Ángeles Muñoz, who alogside her husband took out a loan against their company Crasel Panorámica S.L. The disclosure of the information became a regional scandal.
By publishing this list, ERVA does not attribute the commission of a crime or a civil wrong to any of the people and companies, but does wish to issue a warning:
The Spanish Tax Authorities have stated that using mortgage loans, not invested in the purchase of property, for the purpose of reducing the taxable value of the property with respect to Inheritance Tax and Wealth Tax, as Nordea’s Managed Capital Plan formula promised, is Tax Fraud.
List of Owners, Properties, Date of Purchase of Property and Date of Mortgage Loan.
Important Note: The Spanish Data Protection Agency, in a ruling of the 20/12/2006, has stated that the publication of data obtained from Land Registry sources in a TV programme is legally valid and protected by article 20 of the Spanish Constitution and the Mortgage Act.
Stephen Dewsnip and Mark Coutanche Avoid Denia Court
Stephen Dewsnip and Mark Coutanche, once at the forefront of N.M. Rothschild & Sons in Guernsey, were responsible for selling over 100 tax-evading schemes to mostly British pensioners.
Alerted by the scam, and not the least the loss of their investments, victims of the Credit Select Series sham product filed a criminal complaint in Denia in 2011.
Shortly after, Stephen Dewsnip and Mark Coutanche were requested to attend the Courts; they were to be interrogated by lawyers representing the claimants, the State Prosecutor and the Judge.
What did they do? Avoid receiving service at all costs, even after knowing they were being sought in connection to the Rothschild Equity Release fraud.
3 weeks ago, Stephen Dewsnip attended a hearing in Marbella Courts, as a witness proposed by N.M. Rothschild & Sons in case relating to a civil action brought by a victim. Mr. Dewsnip was very accomodating and happy to assist on this ocassion and help his former employer.
But, as it happens, the Denia Courts are still in the search for an address where Mr. Dewsnip, and his pal Coutanche, can be properly summoned.
So far, the ‘missing individuals’ have been issued with two “Address and Whereabouts Search Warrants”, failing to turn up.
The above orders could be soon replaced by the more annoying “Arrest Warrant” which, as one knows, implies spending time in the nick if and when identified.
Marbella Courts Accept Criminal Complaint Filed Against Nordea Bank
Marbella Courts have accepted a claim against Nordea Bank S.A., and former Danish Army Sergeant turned Managing Director, Claus Jorgensen, for misleading publicity and swindle.
The claim comes as a result of new revelations that would prove that Nordea Bank S.A. ran a tax-evasion scheme in Spain, targeting hundreds of owners of unencumbered homes, whereby a fictitious loan would be officially registered with the main purpose, according to a letter signed by Mr. Jorgensen himself and addressed to the CSSF (Luxembourg regulator), of reducing the value of the property for Inheritance Tax purposes. The loan was then invested in a Nordea-backed “Bancassurance” product, capable of protecting and safeguarding your wealth in order to secure an optimal financial existence for you and your family.
According to Nordea’s advertising, the safety of the product was almost guaranteed when admitting that “it is improbable that the Spanish Tax Office will come knocking on your door…”.
Caught with their pants down, Nordea’s alibi now is not unfamiliar: “it’s not what you think, we just gave general tax advice but you were urged to seek your own private advisors…”.
One has serious doubts about the sanity of the people running this bank: they first issue a booklet called “Guide to Wealth and Tax Planning in Spain”, they then state that it was “merely general advice not amounting to tax advice and certainly not to be relied upon” and finally, they withdraw the booklet from internet 15 days before a pre-trial hearing that was specifically targeting the advertising of the booklet.
Mr. Jorgensen, aware or not that this constituted tax fraud, would have been responsible for loan sign-ups totalling 45 million Euros, only in the Malaga province.
If this degree of moral corruption is surely intolerable in the Danish Army, why would it be acceptable for a bank? Claus, did you not learn anything in the Army?
Letter to Regulator: http://erva.es/wp-content/uploads/2014/02/NordeaLetter28July2010.pdf
Nordea Tax Booklet: http://belegal.com/equity-release/files/2011/11/Nordea-Brochure.pdf
Letter from Spanish Tax Office: http://erva.es/wp-content/uploads/2013/06/2013-05-27-Tax-Office-On-Equity-Release-Binding-Enquiry.pdf
Bancassurance Product: http://www.nordea.lu/Home/Individual%2bapproach/978032.html
Same Man Behind Jyske and Landsbanki Equity Release
The man of the picture is unique in that he has sold Equity Release for not one, but two banks!
His first post was with Landsbanki Marbella wherefrom his scaremongering tactics bought immense success to his company.
When the s**t was about to hit the fan, he jumped ship and found cover in Gibraltar, working for a no less amoral company: Jyske Bank.
Although years have passed since this young-ish looking gallant banker posed for the defunct magazine, you may still be able to guess who he is within this list.
Have a guess!
Nykredit’s Entire Spanish Loan Portfolio Could be Void
Nykredit in Spain, with offices in Marbella (Centro Comercial Plaza), could see all of its Spanish loans declared void by the Courts.
The reason is no other than the appalling wording of many clauses of their standard Spanish mortgage loan contract, notably the “applicable interest rate” clause.
This extraodinary discovery happened when lawyers acting for a victim of Nykredit’s nefarious Marbella branch, who had been served with a foreclosure Court claim, analysed with a fine-tooth comb the wording of the loan contract…only to conclude that it was impossible to establish which rates were applicable and crucially, what was the total sum owed when repossession proceedings got underway.
Lawyers have concluded, following 48 hours of collective ‘brainstorming’, that it is not possible to arrive at a discernible figure on the above concepts.
Now let’s see how Nykredit’s clever Danish lawyers worded the diverse formulas used by the bank to charge interest and calculate outstanding balances:
The value as certified by the Copenhaguen Stock Exchange.
In case of disappearance of the above, the value certified by any other Public Administrative Body.
The “market” value.
The market value paid by Nykredit for the “underlying bonds”.
An amount that could be, in any event, different from the “OBL RESTGAELD” debt.
The value of bonds issued under code “ISIN”.
A formula totally different from the above, in case Nykredit decided to use the prerrogative given to itself of not “taking the above into consideration”.
Quite!
Startled borrowers have stated that if the mortgage loan had been left in Danish language, they would have stood a better chance of grasping something.
In addition to this bungle but as a consequence of the above, NYKREDIT’s Alicante-based lawyers made a total mess in their Court repossession paperwork when, in a futile attempt to cheat the Courts (and their customers), attached the obligatory Outstanding Balance Statement without reflecting the mandatory calculations, without the Notary Public certifying those (when the melon was supposed to ensure the Statement was consistent with the wording of the loan contract clauses, article 218 of the “Reglamento Notarial”) and worst of all, forgetting to legalize the signature of the person ratifying the Statement (a Sussie Nyholm, who at the time happened to be in Denmark, or just as always be believe because she lives there…).
And to cap it all, as for applicable law, Nykredit expressly noted the following:
This loan will be subject to Spanish laws and Courts.
Should the Courts declare void the above 2 clauses in the loan contract, by application of Spanish Consumer laws and notably, the recent 2013 European Court of Justice ruling, the following could happen:
- Foreclosure proceedings are set aside, with costs (circa €70k).
- Only some clauses are declared void, forcing Nykredit to instigate repayment in normal declaratory proceedings where, unbeknown to the lender, a 50-page claim has been lodged against them and their sidekick, Sydbank, for running an illegal Equity Release scheme.
- The mortgage loan is declared void, with unknown legal consequences.
- The entire Nykredit loan book in Spain, Equity Release or not, face the threat of having their legality challenged in Courts.
A daunting prospect whichever way one looks at it.
Rothschild Denies Responsibility Over Equity Release
Attempts by MP Huw Irranca-Davies to seek a plausible explanation as to the purpose of the Credit Select tax-evasion facility, and the effects it has had on purchasers of this mortgage/financial scheme, has been met with indifference by an ubiquitous Claire Whittet, from Rothschild. The below email was sent to ERVA from the office of MP Huw Irranca-Davies, together with Rothschild`s formal answer:
Further to a recent meeting between representatives of Rothschild and Huw Irranca-Davies MP, the following letter was received. (attached)
Rothschild have agreed that this can be publicly circulated, so I have posted this on the ERVA site and Huw hopes it may be useful.(hopefully tomorrow/Friday)
Huw Irranca-Davies reiterates that he cannot – for reasons of parliamentary protocol and resources – enter into individual correspondence with individuals other than his own constituents. Where individuals have a direct or clear familial link with a UK parliamentary constituency you may want to approach the relevant Member of Parliament for that constituency. Huw is happy to discuss the issues with any other M.P’s and to collaborate where appropriate.
Landsbanki Misleading Advertising Case Due to be Filed
Lawyers acting for Landsbanki victims are due to file a misleading publicity case against Landsbanki Luxembourg S.A., Lex Life and Pensions S.A. and Offshore Money Managers Correduría de Seguros S.L.
The case is based on the extensive fraudulent publicity that all three entities issued when offering the product known as ‘SITRA’ (Spanish Inheritance Tax Reduction Scheme), ‘Capital Insurance’ or ‘Equity Release‘.
According to the documentation that lawyers hold, the following has been established:
- The product was devised as a means to reduce, or eliminate completetely, Spanish IHT. We now know this is not only untrue, as it proposes customers to defraud the Spanish Tax Office.
- The product was also designed to potentially produce an income, it being the difference between the return on the invested asset, minus charges and expenses, and the cost of servicing the loan. This was just one possibility, the other more likely one being total loss.
- The advertising stresses prominently the benefits of the product but omits the risks involved -or if at all features these in small print- namely the loss of the property and further.
Landsbanki was extremely successful in attracting new customers by using its main feature: reduction of Spanish Inheritance Tax. Lex Life & Pensions did too.
And Lex Life & Pensions used the name top Spanish firm Cuatrecasas to push sales, by admitting the following:
this product has been ellaborated in conjunction with top law firm Cuatrecasas
Lawyers are awaiting a formal response to a letter sent to Cuatrecasas but we can anticipate the response: “we deny any involvement and do not want to know anything about this product”
The case is to be filed with Courts in Malaga and will focus on the defendants’ advertising.
As for the role of OMM, its responsibility is two-fold:
- Active participation in the promotion and marketing of the product, generously remunerated with an introduction commission and further, by receiving regular trail commissions (as is the case with Jyske bank too).
- Attribution of joint responsibility to any media outlet used to promote and market a particular product or service (rulings by Madrid Appeal Court rulings 17/6/2008 and 30/9/2009).
A case for misleading publicity narrows down the scope of the dispute as it confines the Judge to rule on whether the advertising is/isn’t misleading, without giving any room for further interpretation (i.e. namely misselling: whether customers could and should have sought further advice, whether they were savvy investors or suitable for the product, whether it was a high risk speculative product known to the public etc.).
OMM has declined to come forward to assist claimants, ignoring letters from lawyers inviting them to participate in this case as witnesses, and yet their fraudulent advertising is still today available to the public.
Conversation between DANSKE BANK INTERNATIONAL and Son of a Victim
This conversation was taped by the son of a Danske Bank International S.A. victim, and Soren Glente, at the time one of the bosses in charge of selling the Capital Assurance. The conversation had already been postedin this site but now, we have the most relevant parts in writing.
In the recording Mr. Glente, a classic Luxembourg-based Danish banker, has a rare fit of honesty and sings like a canary:
Minute 15:00 onwards
S.B.: How would you describe the risks of this product?
Soren Glente: Well ehhh depending on how aggressive the client would like to be then, I mean if you did it only for the purpose of optimize your tax situation. Then the risk is quite small, it will cost you something each year, I mean the difference between what you paid and the interests of the loan and what you could achieve on interests of the and if these were place cautionally the income from the assets would be less than what you paid on the loan, and that would be the price of …
S.B.: and was that made clear to the client?
Soren Glente: oh yes sure, for the
S.B.: so the income from the loans, sorry the income from the assets and investment would never cover the loan? Ehh?
Soren Glente: no , if you wanted to have a very cautious investment profile, then you couldn’t you couldn’t have , the income couldn’t achieve the cost of the loan, no. if you wanted to to achieve that on the loan , then you had to be take some kind of risk, like buying more risky assets
S.B.: so it was really ehh
Soren Glente: and so on and so on
S.B.: so in order to be low risk it was loss making
Soren Glente: yes, that’s for sure
S.B.: and loss it was going to accumulate every year
Soren Glente: yes, not by much, but yes, it would, it would accumulate each year because you would be ehh, you would be able to get an income from, let’s say your deposit or your short term bonds which would be ehh, the income would be less than what you paying interests on the loan, so therefore it would accumulate each year, yes it would
S.B.: do you think my clients understood that?
Soren Glente: yes they did, because I explained that to them, when I had meetings with them, I explained them , because I was, when I spoke with clients ehh or with your parents ehh, they were, in the beginning the investments was very conservative placed by me in an agreement with them, and then each year they could see that the capital actually degrees value, that the assets couldn’t provide income which would pay the interests of the loan, so therefore they came to me actually and ask whether I, we should consider changing the assets to more risky assets, in order to achieve a higher income, so I had a long dialog with your clients, ohh with your parents about that, because I had to tell them that if they wanted that, the risk would increase and as far as I remember we agreed to take a small portions of your parents’ assets and place them in a slightly risky assets, in order to at least break even, that is as far as I remember, but you could see, but you should be able to see that on the notes or… so that’s what happened. So I remember I had a dialog with your clients, with your parents in the bank sometime
S.B.: mmm mmm
Soren Glente: but we are going many years back now
S.B.: right, well I think that they did not understand it, I don’t think that they understood that from the beginning when they signed up to this contract, that this was going to run it to loss, if it was going to be lowerer QQ
Soren Glente: no, you might be right. That they didn’t because, you might be right that they didn’t understand that
S.B.: mmm there were…
Soren Glente: many many clients on the costa del sol didn’t understand that you can’t just, you can’t you can’t just automatically make money out of the negative equity, which it actually was, without taking risks and that has been the case for many many unfortunate clients down there that they are they have placed assets on too risky assets too risky assets like equities and things that were having a loan on both the house and the assets
S.B.: did you know the others, do you know, how many other clients did you have like my parents?
Soren Glente: several
Up to minute 20:00
Minute 32:50 onwards
S.B.: and do you still sell this Company insurance scheme product?
Soren Glente: yes, by all means if people they are wanting to tax optimize their situation then that is one of the best schemes you can sell in.it really is
S.B.: but there is dispute about whether it does actually protect against Spanish inheritance tax, not everyone says, not everyone says it protects
Soren Glente: yes, but I have got a legal opinion saying differently
S.B.: from who, may I ask who from?
Soren Glente: it was from several other companies Price Waterhouse Coopers in Spain in Madrid, we have a legal opinion from these guys
Minute 34:03
Soren Glente: Yo have to do it right to have it to work, but it does work, you just have to know that the reason for doing this is not to release your equity from the property to in order to buy a new car or whatever you want to, the reason for doing this is to optimize your situation for wealth tax and yeah mainly inheritance tax, wealth tax was also an issue, but it is a lesser issue today
