LOCAL FINANCIAL ADVISERS IN COURT
The Costa del Sol Action Group CDSAG (www.costa-action.co.uk) was started by David Klein nearly four years ago after David Klein and his wife lost money due to the incompetence and mis-selling of his local financial adviser. David could not obtain any recompense or redress because the company was not licensed or authorized by any official body in Spain such as the CNMV or DGS in Madrid, Gibraltar FSC or the UK FSA.
From these relatively humble beginning the CDSAG has now grown to represent more than 800 families who have suffered similar losses totaling a staggering £80 million.
The lawyers acting for the CDSAG, initiated proceedings in Spain's Supreme Criminal Court in Madrid culminating in a class action on behalf of selected aggrieved parties against certain financial advisers. The Comisíon Nacíonal del Mercado de Valores (CNMV) and the National Fraud Squad in Madrid estimate that the number of expatriates who have suffered at the hands of unscrupulous and unauthorized financial advisers could run as high as 17,000 in Spain.
The amount of paperwork produced for the court is awesome with reams of documents translated from the original English into Spanish for the court process.
The first named defendants have now been ordered to appear before the courts in Benidorm and Marbella to make their depositions and be interrogated by the Judge and lawyers acting for CDSAG on behalf of victims.
John Anstey Findlater OBE who sold the IPM FTSE-100 Fund, Sensible Options and Charterhouse Trust Credit Union amongst others on the Costa Blanca is to appear before the court in Benidorm on 11th April 2006 to testify.
Colin McCready of Offshore Money Managers in Marbella, Christopher Labrow , formerly of Labrow International and now Chairman of the Gibraltar Association of Stockbrokers and Investment Managers, and Donald Nott of Henry Woods Investment Management in Marbella have all been ordered to appear before the Juzgado de Instruccion Nº 4 de Marbella at 10am on 12th May 2006 to make their declarations.
Over the past few years an action Group led by David Klein of Marbella which now consists of over 800 families with losses of around 80 Million Pounds Sterling. It is estimated that there are around 13,000 families that have been mis sold investments on the Costa del Sol, Costa Brava and Costa Blanca.
The Costa Del Sol Action Group made applications to the Criminal Courts in Madrid with the full support of the Spanish Financial Services ( CNMV).
The case was presented to the Judges to see if unregistered, illegal companies who call themselves Financial Advisors and have no licences to trade, no indemnity, hold no qualifications, have no duty of care, could be tried for mis -selling and misleading investors.
Many families who invested have been caused severe hardship, some have sold their homes and been forced to return to the UK. Others have been forced to change their way of life and much stress has been suffered.
In the Criminal High Courts in Madrid ( Audiencia Nacional ) on the 3rd of July 2003 the Judge instructed the Financial Services ( CNMV) to take immediate action without limitation and investigate the following companies who are accused of trading unlawfully in Spain without Licences, and mis-selling, and report to the courts. In the summing up the Judge stated that this could well have an effect on the economy of Spain.
Offshore Money Mangers
Brewin & Dolphin
John Findlater OBE
Linnco Europe Ltd
Rock Financial Services Ltd ( Closed down by the Gibraltar Financial Services)
Henry Woods Investment Management,
Hansards Isle of Man
Knights Insurance Brokers.
Although the present judgement is against those named in the action, subsequently other unregistered independent financial advisors will also be named in the action with many large financial Product Providers held to be liable for supporting these unlawful these Financial Advisors.
Further details from the Lawyers
IURA Despacho Jurídico
Tel.: 952 477108/ 952 477112
Fax: 952 477116