 John Hemus
(Lawyers Say Bank Victims Have Fraud Case)
Top lawyers believe hundreds of pensioners living on the costas were conned into signing up to an equity release scheme with failed Icelandic bank Landsbanki.
Elderly investors fear they could lose their homes in the sun but legal experts believe Spain’s powerful consumer laws could still save the day. More than 600 expats are known to have joined a scheme that allowed them to take a quarter of their loan in cash – while the remainder would be invested through Landsbanki Luxembourg, which promised to pay the interest, management charges and provide some income. Victims on the Costa Blanca and the Costa del Sol have forged an action group - already more than 100-strong, they have taken high-powered legal advice. “The lawyers’ view is the scheme could be totally illegal,” said John Hemus, who lives in Moraira, and is the group’s northern organiser.
ACT
“The lawyers want to act straight away and ring fence everyone’s property so there is no worries about anyone knocking on the door.” He added: “They think it may be fraudulent because not only have some unregistered financial advisors sold us the scheme but to get the 8 percent return they promised us, they would have to make between 12 and 15 percent on the investment – which is not available anywhere in the world.” John said it appeared that some advisors were registered but it appeared only to sell insurance. “And Spanish consumer law is actually very strict.” Round Town News first highlighted the plight of the victims a fortnight ago – earning the thanks of grateful homeowners who now realise they are not alone in facing potential disaster. “I don’t know what we would have done without RTN bringing this out into the open and we desperately need everyone to get in touch so we can stand together,” said John.
STORY
The investors’ story has since been highlighted in British national newspapers and follows Landsbanki Luxembourg being taken into administration. The Daily Mail’s James Coney wrote on Wednesday that the expats had racked up debts “after signing up for a type of scheme that has been banned in Britain since 1990.” And he concluded that investors faced peril on two fronts – their stake was not paying income so interest continued to soar, while administrators could call in the debt and repossess homes. John, quoted in the Mail’s article, agreed: “There are some real horror stories out there. We are much stronger as a group – as individuals you have not got a cat in hell’s chance, unless you are very wealthy. “However, the more people that join us now the cheaper it will be for all, although we obviously cannot talk figures at the moment.”
WAYSIDE
And John added: “Even if people cannot afford it, they must get in touch – we will not be leaving victims by the wayside. “We desperately need these people to come forward – they are on borrowed time if they do not. Please get in touch, at least they can see what the options are.” He said there were already “ambulance chasers” contacting victims, including an ex-Landsbanki employee who had arrived in Marbella with solicitors from Luxembourg. “They hired rooms in a top hotel and I believe were charging people to go into the meeting, 17 euros.” John said it was wrong that any court action would have to be taken in Luxembourg.
DEEDS
“The deeds and contracts were signed in Spain and are registered with the land registry here. It has to be fought through the Spanish courts,” he said. “We will fight it through the Spanish legal system – and we will win.” John said “sooner rather than later” the action group would bring the lawyers to the Costa Blanca so victims could make an informed decision whether to join the campaign.
John Hemus can be contacted on 96 649 8676 or 636 954 168, or by email at
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His fellow action group organiser Mike McInnes can be contacted on 647 583 498 or by email at
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