Silverpoint – Where Has All the Money Gone?

The internal “blame game” is now becoming public and it makes interesting, although sickening, reading! In an astonishing series of blog posts, an anonymous source – most likely a director of Silverpoint sitting on millions of ill-gotten gains himself and most likely now scared witless about the prospect of criminal proceedings and potential jail time – has spoken out.

Where is the money?

The recent exposé describes how the money is basically controlled by an offshore trust. The trustee is a bank and Bob Trotta and his wife Ragni were the original sole beneficiaries of the trust until Bob´s death in December 2017. Now it seems that various members of the Trotta family are pulling the strings to protect their inheriance.

Over the years the trust moved the money through a complex web of companies, principally the Limora Group and hundreds of offshore companies. To avoid or evade tax the money was often designated as ”intercompany loans”. Apparently, these complex structures were masterminded by the business´ original founder Bob Trotta and financial architect Kwaang Boon Sim.

Having extracted over 15 million for Bob and his family in the run-up to his death, the business unsurprisingly had cash-flow issues. Kwaang Boon Sim masterminded new ways of injecting cash into the Limora Group, such as with the troubled “ELPP” investments. Millions of pounds of ELPP investment money was sent to Excel Overseas Holdings Limited, a company based in Dubai. It is claimed that this money was used to help keep the various Limora Group companies in business.

What is happening now?

The trust and the Trotta family have now brought in firm Alvarez and Marsal of the Cayman Islands to try and extract as much wealth as possible for themselves from the web of companies. Alvarez and Marsal is a large insolvency company, also known for asset stripping, which is the practice of taking over a company in financial difficulties and selling each of its assets separately at a profit, without regard for the company’s future.

The team at Alvarez and Marsal, headed by Alex Lawson and assisted by original architect Kwang Boon Sim are working their way through the large and complicated web of companies, taking over directorships and then declaring them insolvent. This means that Lawson and his team assess the company’s ability to repay its debts and declare them unable to.

It is claimed that each company´s insolvency is justified by writing off debt with other companies that appear to be unrelated, but in reality are effectively controlled by the Trotta family. The purpose of deliberately inducing these insolvencies is to get out of the liabilities to consumers who have already handed over large amounts of money. The trust and Trotta family would keep the cash and not deliver on the promises and products sold to the customers. Of course, Alex Lawson and his firm Alvarez and Marsal, the insolvency specialists, are extracting large fees all along the way.

Where are the people responsible for all this now?

According to the source of this information, Kwang Soon Sim is currently hiding out in his million-pound mansion in the UK, and the Trotta Family are enjoying a luxurious lifestyle in the mountains of Colorado and the rolling hills of Tuscany. Alex Lawson is described as enjoying his paradise on the sun-kissed island of Grand Cayman. He is also described as having “… a complete lack of compassion” while closing selective Limora Group companies, which has devastating effects on both workers and clients.

What can you do if you are affected by the Silverpoint failures?

With a whole serious of closures and liquidations, including Keys Concierge, Signallia, Excel Overseas Holdings and Club Paradiso, now is the ideal time for members to file a claim against Silverpoint and its associated companies while they are still active.

Nordic Consulting is the leading provider of litigation services in Tenerife against Silverpoint.

  • Contact us with the details of your membership via phone, email or in person at our offices in Los Cristianos.

We will give you free impartial advice on your potential claim and free advice as to what you should be doing in the meantime.