Miguel Rodríguez Ceballos, the lead lawyer affiliated with The Nordic Consulting, has just reported that there is an exciting development in the criminal investigation surrounding the collapse of Silverpoint Vacations SL, the Tenerife-based timeshare company.
On Friday 24th April a judge from the Criminal Court in Arona, Tenerife, notified our lawyer´s office that the criminal investigation launched against Silverpoint now also includes Excel Hotels & Resorts SA. Excel was part of a group of related companies and today it continues to manage resorts on Tenerife where holiday investments were sold by Silverpoint, including Beverly Hills Club, Beverly Hills Heights, The Hollywood Mirage and Palm Beach Club.
It is hoped that the investigation will eventually also expand to include the advisors of Silverpoint and its related companies. Finally, the Spanish courts and prosecutor’s office are pursuing what many of us have long suspected – the collapse of Silverpoint was no ordinary bankruptcy.
As we have previously reported, Silverpoint was part of a group of companies controlled by the Trotter family. We believe that crimes were committed that saw investors, many of them elderly pensioners, lose their life savings, while the money they invested was moved to other group companies, many of which were based offshore.
This current investigation originated with a criminal report made through the Spanish Prosecutor´s Office, which had already considered the possible existence of several criminal offenses. These include frustration of execution and punishable insolvencies.
One of the potential crimes is known as “alzamiento de bienes” or concealment of assets. This crime makes it hard for creditors to find assets with which to cover their debt. It appears that millions of euros of assets including timeshare weeks and apartments were removed from Silverpoint shortly before the timeshare giant filed for bankruptcy.
One of the main recipients of these assets was the resort management company Excel Hotels & Resorts SA. Already the court appointed liquidator in the Silverpoint bankruptcy has identified nearly €8 million of assets held by Excel that he wants ringfenced for the creditors.
It is hoped that this investigation will stop those responsible for the collapse of the timeshare giant from hiding behind “the corporate veil” and that assets can be recovered. It is also hoped that those responsible will be punished for their actions and that the criminal prosecution will help clean up the tarnished image of the Tenerife resort holiday industry.