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New Action Group takes on promoter and bank: (03.09.10)



Cleyton GES SL and Caja de Ahorros del Mediterraneo (CAM Bank) failed to issue every purchaser with the legally required Bank Guarantees on this development.

Since paying their off-plan deposits in good faith in November 2006, a group of 8 Finca Parcs purchasers have been chasing the developer Cleyton GES SL for the legally required Bank Guarantees that have not been issued.

Over a period of 3 years Cleyton GES SL made numerous written promises as to when the legally required Bank Guarantees would be issued.  However, none of these promises were fulfilled and on a number of occasions in writing, Cleyton GES SL, blamed the failure to issue the
Bank Guarantees on the projects funding bank who accepted the off-plan deposit payments - Caja de Ahorros del Mediterraneo (CAM Bank).

Cleyton GES SL alleged that CAM Bank had changed their criteria and were only going to issue the Bank Guarantees as each Phase was started, despite the fact that CAM had already received and were holding the off-plan deposit funds.

From a Cleyton GES SL letter sent by post and email to clients during the period May to September 2008:

"As you are aware from our previous communication the bank has changed its procedure
concerning the issue of bank guarantees and instead of issuing such document straight away, they have agreed to release them phase by phase"

"According to CAM Bank, the fact that a 75% of the guarantees have already been issued,
proves the developer has operated in good faith and following instructions from CAM"

CAM Bank can change their procedure but NOT if it means that in collaboration with their client Cleyton GES SL they will be acting contrary to Spanish Law, in particular, LEY 57/68 Article 1.1 and 1.2 by
holding purchaser deposit funds and failing to issue the legally required Bank Guarantees.

By their own admission only 75% of the Bank Guarantees had been issued.  Far from proving that 'the developer has operated in good faith' it actually meant that the developer was acting ILLEGALLY.  Furthermore, CAM Bank was also acting ILLEGALLY as the letter stated the
developer was 'following instructions from CAM'.

An email from Cleyton GES SL dated 2 May 2008 stated:

"At this stage our company is completely under the instructions and recommendations of
the CAM Bank, they are financing the project, and all important decision taken by the bank have to be respected by our company"

The original group of 8 purchasers made an official complaint to CAM Bank in July 2008, however CAM continually used delaying tactics to avoid dealing with the matter.  In December 2009 the matter was
escalated to the highest level within CAM Bank, to the President - Modesto Crespo and the CEO - Roberto Lopez Abad.

However they also failed to understand the serious nature of the problem
and in December 2009 stated in an email to the 8 purchasers:
'If you do not have a Bank Guarantee then you have no relationship with this entity'.

In May 2009, the developer Cleyton GES SL, abandoned the project.  During the period June 2009 to August 2009 Cleyton GES SL reported that they were in closed door negotiations with the projects funding entity, CAM Bank.

Those negotiations failed in September 2009 and Cleyton GES SL then set up the Finca Parcs Refunds Process.  On 21 September 2009 a Cleyton GES SL communication posted on Eye on Spain and sent by email to each purchaser stated:

We write to inform you that the project Las Higuericas Finca
Parcs has become financially unviable during this current global
crisis, therefore it is the intention of Cleyton Ges S.L. to refund
all payments including interest to clients that have reservations
for property situated on Las Higuericas Finca Parcs.

In the first instance we require agents to contact their respective
clients to inform them directly of the situation.
Once all respective clients and agents have signed the
cancellation of the purchase contract Cleyton Ges S.L. will issue
instructions to the CAM Bank to expedite the refund through the
Bank Guarantee.

For those clients that are still awaiting the issue of their
respective Bank Guarantee a bank instrument will be issued with
a maturity date twelve months from the date of issue, this will
include the sum of 6% interest from the date of reservation until
the date of maturity.

Please contact your agents for further information from Tuesday 22nd
September 2009. Clients who have purchased directly with Cleyton Ges S.L.
will be contacted during the next week.

Cleyton Ges S.L.

The FINCA PARCS ACTION GROUP was then formed.

On 24 September 2009 Cleyton GES SL released a further statement via Eye on Spain:

PROVISION WILL BE MADE FOR ALL CLIENTS WITHOUT BANK
GUARANTEES TO RECEIVE A FULL REFUND.
PLEASE CONTACT THE REFUNDSFINCAPARCS AT HOTMAIL.COM
DIRECT GIVING YOUR FULL DETIALS. YOU WILL BE REQUIRED
ONLY TO PROVIDE PROOF OF PAYMENT. ie TRANSFER RECIEPTS,
SIGNED CONTRACT WITH DETAILS OF PAYMENTS MADE. PLEASE
CONTACT ANA A.S.A.P.

After many more promises involving Arab Investment groups and funds supposedly being raised to provide the promised refunds, the Finca Parcs Refunds Process closed on 5 March 2010 and failed to provide a refund to any purchaser.

FINCA PARCS ACTION GROUP is now taking legal action against Cleyton GES SL and the funding bank - Caja de Ahorros del Mediterraneo (CAM Bank) - the bank to which the off-plan deposits were paid and the bank who were funding the developer and the Finca Parcs project.

The above is just a very brief summary of this complex situation which has links going back almost 10 years.  FINCA PARCS ACTION GROUP has a dossier of evidence which consists of around 500 pages.

NO STONE WILL BE LEFT UNTURNED IN OUR FIGHT FOR JUSTICE

Тhe Finca Parcs Action Group has email address fpag@btinternet.com. We have expressed our solidarity with the action of the group, and ask our members to do the same.

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