Jelesa SA constructed a resort for the purpose of selling private apartments.
Before, during or after the construction phase, the developer decided to create two identifiable operations;
- Private apartments
- A timeshare Club
In respect to the timeshare part of the operation, a Club was created and the members of that Club were also obliged to make their contribution to the resort.
The properties set aside for the timeshare operation were not owned by the timeshare owners or the Club. They were owned by Leeside Ltd.
That company was domiciled in the Isle of Man. Parenthetically so was TTI Trust who constructed the underlying contractual documents.
That company issued rights of occupation and therefore, all incoming timeshare owners, in reality, owned nothing but a right to occupy. That right to occupy was by way of a grant subject to, extensive conditions contained within the constitutional documents.
TTI Trust was bought out by FNTC in or before 1995. The Directors of FNTC at the time were Bouguard, Kenny, Philip Broomhead and Cox. After investigating the deed of adaptation, this gave clarity to the underlying ownership in 1998 as still being Leeside Ltd.
As previously stated, TTI constructed a cluster of companies and associations so as to facilitate a purpose.
Despite the properties being held by Leeside Ltd, the incoming timeshare Owners were sold their timeshare by JDP Sales Ltd again, based in the Isle of Man.
On the 31st December 2003 the annual return of JDP Management Ltd was filed by FNTC Trust. JDP Management Ltd had an authorised share capital of 2,000.00 ordinary shares. Of which 100 were issued, of which 99 of those shares were owned by Dorset General Holdings Inc, Elderado, Panama.
Therefore, at this date, the two controlling minds of the organisation were Estevan Lacoume, Spanish and Geoffrey Price, British and both operating from addresses within in Spain. FNTC Secretaries Ltd was the secretary.
The day to day management of the timeshare resort was Jardine Management Company Ltd. The Directors were Jose Anton Garteizaurrecoa and Mr Estevan Lacoume. On the 13th February 2002 Geoffrey Victor Price was added as a Director. The company registration was 2821/16. The secretary was Northern Companies Secretary Ltd in the Isle of Man.
This explains in part the original Jardine Del Puerto set up.
In future reports we will detail many misdemeanours associated with this resort and which were carried out by the parties which ultimately caused problems for the timeshare owners.
That said, a material change occurred at the resort as a result of Mr Lacoume being subjected to a barrage of allegations from the incumbent Timeshare Owners. The allegations centred on an alleged tax fraud committed by the resort managers which resulted in an embargo being placed on Leeside Ltd and by the Spanish tax authorities.
The allegations centred around the non payment of tax. The tax was claimed to be due and owning from rental income taken by the Club and not declared to the authorities.
These activities were not disclosed to the Consumer representatives in the Club, and when the embargo was placed “holy hell” broke loose within an annual general meeting held on the 14th April 2000. The meeting was attended by 14 timeshare Owners. The committee which consisted of Mr R Bell, Mr E Lacoume, Mr A Mutiozabal, Mrs Astrid Saffin and Mr Willy Walsh.
At the start of the meeting the first 3 members didn’t bother to turn up. Part way through the meeting, Lacoume arrived and took his place on the committee. Walsh explained that he contacted the legal dept in the Isle of Man and he was told that “the founder members still owned weeks and that the club had no entitlement to those weeks”. Saffrin explained that she believed the founder member may not have paid his maintenance fees on the apartments that he owned.
The manager of the resort Christina told Saffrin that the founder member had not paid fees for approx 6 years, despite being asked to do so. This statement was later qualified in the meeting that in fact, the founder member never paid ANY maintenance fees on any apartments that he owned for 3 years and only part paid some of those fees for the remaining 3 years. Mrs Saffrin became outraged, demanded the Christina request payment, there and then. Saffrin went on to state, after reviewing the financial accounts, that those accounts did not reflect any outstanding debtors. And there being now confirmed a substantial debt outstanding and that debt not being reflected in the accounts, that the accounts were in reality, a sham.
Mr Lacoume was asked the same question. Lacoume being an architect probably did not have the intricate understanding of accounts and could not give a logical response. It was however noted that the founder member company had wanted to see the timeshare weeks owned by them a few years prior but he had personally disagreed with the company to whom they proposed selling the weeks to. He further explained that they were no longer for sale.
The outranged consumer representative Saffrin suggested to the Chairman Walsh that they contact the legal dept in the Isle of Man.
Further investigations were aired at the meeting and many allegations were levelled at Mr Lacoume who stormed out of the meeting in reported rage and refused to answer any further questions from the timeshare owners present. He also bellowed his intent to discontinue managing the timeshare apartments stating “you can get another management company” it was reported that many members appeared shocked at this remark. Saffrin complained as Mr Walsh closed the meeting that she was given no opportunity to discuss the accounts. However, the committee did agree that Saffrin would contact Lacoume so as to establish the indebtedness that the founder member owed to the club. It was also agreed that Mr Walsh would arrange a meeting with Declan Kenney the trustee to raise these issues of grave concern.
To ensure that the timeshare purchased by the Consumers had a continuance, one Consumer representative took immediate action to secure the annual maintenance fee payments. In doing so, this immediately protected the Club. The committee member, namely Astrid Saffin, paid the tax due which released in part, the embargo. This act saved the Club
Clearly, the embargo was placed on the Club which employed the management agents. It would only have been just, proportionate and reasonable for the Club to claim that money from its managing agent. As it was that managing agent that was responsible for the alleged tax fraud levelled by the Spanish tax authorities.
That claim was never made against the management company.
We will report on the events and actions that FNTC took in our next article.
There is no need to bring us a present
There is no need to thank
We have a need for funding
Which you could kindly deposit in our bank.
TSB Bank Account no: 12435268 Sort Code: 77-26-28
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk