Up to 200 properties in Spain alone may be repossessed despite alleged fraud by Bank

A TRULY alarming story has been brought to the attention of Euro Weekly News by two of our readers in Mojacar who are being threatened with repossession of their home by the liquidators of a failed Bank from Luxembourg which is now accused of both fraud and money laundering.

Back in 2006, the couple were persuaded to join a scheme which effectively required them to pass over the deeds to their property and in return they were to receive €250,000 which would be deposited in an investment account which would generate income for them over a period of years and at the end of the agreement, they could repay the amount loaned.

Supposedly, their lump sum was guaranteed against any loss or maladministration by a secure insurance policy which would cover them in the event that the investment company entered into financial difficulty.

The deeds were passed to Landsbanki Luxembourg SA and the money was supposedly invested with a third party, Lex Life and Pension Fund, which they later discovered was a subsidiary of Landsbanki.

Landsbanki went into liquidation in 2008 and it appears that all of the so called protected funds in the Lex Life and Pension Fund had mysteriously disappeared as had the promised insurance cover.

This means that this couple as well as others throughout Spain, Ireland and other parts of Europe were considered to be debtors by the liquidators of the failed group and for the past seven years, they have been threatened with having their houses repossessed.

Despite the fact that they have formed a group which has commissioned lawyers to act on their behalf and despite the fact that legal advice received suggests that the whole scheme was not only unworkable but as it had not been legally approved in Spain, it was fraudulent appears to have made no difference to the liquidators.

They have just been advised that a large number of pensioner’s properties in Almeria and Marbella in particular are now under imminent threat of repossession which is incredibly distressing and so far 28 of their members have already died since this saga began.

The incredible stress that these and other unfortunate elderly people are experiencing is difficult to conceive but it does seem totally wrong that having lost the lump sum invested with the Landsbanki group, rather than return the deeds of the properties to these innocent people, the liquidators should now be attempting to seize their properties as well.

We will be requesting a statement from the liquidators who have already had their first attempts to seize the properties rejected in a Malaga court for an explanation on behalf of our readers and will publish their response if and when received.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews