The Anfi Group, the largest timeshare operator in Europe confesses it is “overwhelmed” by the hundreds of enforcement procedures (payments and embargos) that it has faced to comply with the court sentences that have been issued against it as a result of irregularities in the contracts signed by timeshare owners. After receiving several warnings about the lack of response to the judicial requirements to report on assets liable to seizure in those cases, the company has finally provided a list of properties.
Bjørn Lyng
The Anfi empire was founded in the eighties by the Norwegian businessman Bjørn Lyng and has been the subject of a criminal investigation carried out by the Investigating Court number 2 of San Bartolomé de Tirajana, in the south of the island of Gran Canaria. The proceedings were opened after Las Palmas Prosecutor’s Office filed a complaint in the summer of 2019 against two companies in the group, Anfi Sales and Anfi Resorts, for hiding their assets to prevent or delay payment of awards to which they had been sentenced to settle in numerous previous court cases. In the resolution issued on January 15, 2015, the Supreme Court established principle on the matter by annulling lifetime (perpetuity) contracts sold illegally to timeshare owners.
Lawyers
Lawyers Miguel Rodríguez Ceballos from the law firm Ceballos y Navarro, and Eva Gutiérrez from CLA were the authors of briefs that in early 2019 led to the opening of an investigation by the Public Ministry. Many other lawyers in Spain including Patricia Criado Navas of M1 Legal have started legal proceedings on behalf of their clients. The Anfi Group has opposed these proceedings stating that the charges against them were unjustified and subsequently appealed the decision. The appeal filed by Anfi is pending a court decision.
Complainants and Lawyers alike continue to be frustrated with the obstructive attitude and actions of the Anfi Group. Anfi, In the past, have been accused of emptying accounts of various Anfi companies, this being perpetrated in order to avoid compensation payments awarded by the courts. Under the spotlight are the balances from the accounts of Anfi Sales and Anfi Resorts, which in 2016 exceeded €10m and are now practically zero. In doing so the group, which has consistently refused to pay court order compensation voluntarily, has thus far avoided foreclosures.
In the course of the investigation being conducted by the courts, Anfi has acknowledged the delays in complying with the requirements to report the assets that could be subject to embargo. In addition, Anfi have argued that the company have already made available to the court a number of properties to deal with the debts. However, as one of the lawyers, Eva Gutiérrez, states these assets are difficult to realise. Firstly, because they are real estate, so it is necessary to carry out an appraisal valuation and sale with the time and cost that this entails. Secondly, because these properties carry charges such as tax and mortgages and with certain limitations of use, because they are mainly in the tourism industry, presents further problems.
In Spanish Civil Procedure Law, these properties appear in the seventh position in the order of seizure (from easiest to the most difficult), behind liquid money, credits, rents, interests etc. The lawyers indicate that Anfi has only contributed part of the assets of one of it’s companies (Anfi Sales) and not of the other two that appear in the contracts (Anfi Resorts and Anfi Tauro). The company argues that the market value of the properties offered far exceeds the mortgage burdens and other charges they carry.
Maintenance Income
Investigation has quantified the income that Anfi receives from its clients as maintenance fees at more than €20m pa. Anfi has five complexes on Gran Canaria with a total of around 1,000 apartments that are operated by timeshare with occupancy of 51 weeks each. The maintenance fees range between €400 and €900 per week owned, the €20m estimate is based on fees of €400 per week. If the figure is nearer €900 per week then the amount becomes nearly €46m! Investigating law firms claim to be unaware of the destination of this income. This figure does not include other sources of income that the company obtains from the rental of certain commercial premises or from the luxury villas located in the Anfi Tauro area.
We are of the opinion that this case will rumble on for some time to come but it appears that with every counter tactic Anfi makes they are getting closer to pinning themselves into a corner from which there will be no escape.
If you have been the victim of an illegal contract sold by Anfi or you wish to discuss any legal worries you have regarding your timeshare contract then feel free to give us a call, we won’t always have an answer but for sure we know people who do.
The content of this article is based on an article published by El Diario on 14th July 2020. See:
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