British investors in the financially troubled multi-million dollar Caribbean investment firm Harlequin Property are afraid they could lose tens of thousands of dollars and even their own homes after Harlequin’s sales division filed for administration last week.
Some of the investors remortgaged their own homes in order to fund their deposits on properties in vacation resorts planned by Harlequin and, now that the company has stopped paying the interest on the remortgages, which it agreed to as part of the deal, their homes may be in jeopardy.
Harlequin has taken more than £300 million (US$453 million) in deposits for at least 6,000 properties across six Caribbean resorts, but only built around 300 at Buccament Bay in St Vincent and the Grenadines.
Harlequin said last week: “Due to unfounded negative publicity in the public domain that has been instigated since 2011, the day-to-day UK sales business of Harlequin Property has become increasingly challenging, to the point that it is now almost impossible.
“The underlying business model of the Harlequin group is strong and the directors are confident that, with the external finance and property completions anticipated, our investors will see significant development at our resorts in the near future.
“Investors can be assured that the company sees no reason why these circumstances would threaten their investment with Harlequin. In fact, the measures set out above are a means of further securing their investments from external and contrary interests.”
Harlequin recently halted work on its two multi-million dollar resorts in Barbados, owing employees two months’ salary, the Barbados National Insurance Scheme (NIS) about $80 000 (US$40,000) and several local businesses and contractors in excess of $3 million.
The company was also in the news when its owner, British businessman Dave Ames was accused of bribing the prime minister of St Vincent and the Grenadines (SVG) in order to gain citizenship.
Ames, 60, has rejected the accusations that he had offered Prime Minister Dr Ralph Gonsalves a “suitcase of money” in return for citizenship in SVG, where Harlequin is developing a luxury resort.
The BBC sent reporters to the Caribbean and later accused Gonsalves of accepting a suitcase of money from Ames in order to receive his citizenship.
Meanwhile, Harlequin has moved out of its offices in Barbados, and the majority of its senior managers have reportedly packed up and left.
In a statement at the time from its British office, Harlequin said it was in the process of restructuring elements of its business.
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