CMG Fails To Answer Legal Questions

I know, the post title is pretty familiar at this stage, but this is a very different set of questions being asked by some serious people - Justice Finlay Geoghegan in the High Court to be specific. These questions have been thrown up by the liquidation of Flash Developments, which had been holding the contracts and money of investors in the Palm View Resort in Boa Vista, Cape Verde.

In a piece in the Sunday Business Post on June 27th Ian Kehoe claimed that the "High Court has ordered an investigation into property company Flash Developments, after evidence emerged that the company may have used deposits from buyers to finance the running of the firm."

It went on to claim: "It has also emerged in court documents that the company, which is headed by businessman Ciaran Maguire, may not have title over land in Cape Verde, where it had proposed to build a €100 million property scheme."

It also claimed: "documents filed last week by the liquidator, KPMG accountant Kieran Wallace, said that Flash appeared 'to have financed the general running of the company' from the deposits it received, rather than place them on secure deposit. "

The Insolvency Journal had the following on June 23rd: "The High Court also heard on Monday that the liquidator of Flash Developments Ltd, Kieran Wallace, is pursuing an investigation into representations made on behalf of the company which appear to suggest that the company may have taken deposits for villas and apartments when it didn't have the authority to do so.

The firm, controlled by businessman Ciaran Maguire, was placed into liquidation in May following a court petition by international recruitment firm Hays.

Flash Developments had received deposits from 200 Irish and British investors for properties in a proposed €100 million resort on Cape Verde. But speaking to the Sunday Business Post last month, Magure insisted that all of the deposits were safe, despite the wind-up of the firm, because all contracts, development lands and credit lines had been transferred to another company – the Ciaran Maguire Group."

These are very, very serious claims of fraudulent activity and we didn't feel it was right to put such claims on the blog, even though the claims weren't ours, without asking Ciaran for a comment on them. In fairness, he's been fairly forthcoming in the recent past, answering most of the queries we've put to him. So we did just that - and didn't get an answer. Instead his office responded to say he was in Cape Verde and would like to be given a chance to respond on his return.

So we waited, and waited, and waited. Still nothing.

Eventually, on July 13th Ciaran came back to us with the following: "I have just returned from Cape Verde and can confirm that building works are on going and I will furnish you with the updated pictures tomorrow. I can also confirm that the claims from Kieran Wallace are absolutely false and I am very much looking forward to outlining all the actual facts. I would also like to highlight that Kieran Wallace has no involvements in Ciaran Maguire Group and therefore has never seen any documentation in the Ciaran Maguire Group including contracts thus making these claims unfounded."

So we waited for the follow-up - but it never came. In fact, Ciaran has stopped responding to our emails completely for some reason so we've had to put up the post without further input from him.

Today (July 20th) the following appeared on the Boa Vista Experience Forum from the user CMG:

Dear all,

I would like to convey that under the advice from my legal team, I will no longer be in a position to post comments on this forum. Despite several requests to sit down with interested parties in both my office in Dublin and including making myself available to fly to the U.K. to meet with any interested parties, I have not received one offer. I have made it categorically clear that I was happy to answer all questions put to me.

Sitting down and having a face to face meeting would have given me the opportunity to outline and display the facts allowing me to furnish these parties with all the relevant documentation. I believe this would have allowed you to give a true reflection on Palm View Resort.

In light of the above my legal team have been working on logging and detailing all the posts made on this forum. It is now my intention to aggressively seek compensation for defamation and reputational damages. I would like to highlight to the careless bloggers on this forum that my legal team have now traced all the IP addresses and real names behind the identified bloggers and will be issuing the legal letters to the aforementioned.

The people on this forum who have made comments deemed to be defamatory please note; I intend to use these posts on this forum as evidence against you in a court of law.

In relation to the existing 200 plus clients and investors in Palm View; I would like to advise that my office will be furnishing you with updated pictures of on going works on site and general monthly updates. We are on schedule for completion in December 2011 and we can all look forward to seeing Palm View coming to fruition.

Regards,

Ciaran Maguire."

This follows a similar threat on the same forum on June 14th last. Following that post we were contacted by a number of posters on the forum who said Ciaran hadn't even got their country right in some cases.

This IP Address Tracking claim is a particularly strange one as most ISP's (Internet Service Providers such as Eircom and BT) these days provide clients with what is termed a 'Dynamic IP Address'. It is a system whereby IP Addresses are assigned randomly to clients as they are needed, rather than individual IP Addresses being assigned permanently, which is a very poor use of ISP resources. Consequently, most people's IP addresses change at least once every day and several times in most cases, depending on usage. This system makes tracking the IP Address beyond the region in which it is based (e.g. Dublin, Waterford, Cork, etc.) virtually impossible.

It is possible that those hosting the forum could trace the odd post back to a fixed IP Address (common in larger companies who have very heavy internet usage), but not very many of them. In the main they are, and will remain, totally anonymous.

Consequently, Ciaran's claim that he has the names of people posting on this, or any other forum, is absolutely bizarre.

In any case, we've always been very forthcoming with our interest in this particular development, Ciaran knows exactly who we are and the questions we've got. We've also tried to be fair to the developer and have given him every opportunity to put his side of the debate to the general public where possible. He simply seems to have decided not to do so in the last few weeks which is a great shame.

If Ciaran decides to change his mind on this matter and does email us with further information we'll be sure to put it on the blog post-haste.

Ciaran Maguire PR Resigns

We've just received the following communication from Paul Allen, who has been Ciaran Maguire's PR for just a few weeks:

"I write to inform you that we have decided to resign our account with the Ciaran Maguire Group.

Should you wish to make contact with Ciaran Maguire directly you can reach him on 087 1473608 / (01) 6251542.

Kind regards,

Paul."

No reason has yet been given for the resignation but we will publish it here if it is revealed.

Flash Developments in Liquidation

The following story appears in the Sunday Business Post of May 30th:

"The developer behind a proposed €100 million resort in Cape Verde has said that the project will not be affected by the liquidation of one of his main firms.

The High Court last week appointed a liquidator to Flash Developments, which is headed by businessman Ciaran Maguire. It has received deposits from 200 Irish and British investors for apartments and villas in the planned Palm View resort on the west African island.

Maguire told The Sunday Business Post that all of the deposits were safe, despite the winding-up of Flash Developments.

He said that all the ‘‘contracts, development lands and credit lines’’ had been transferred to another company called the Ciaran Maguire Group.

Maguire said that Flash Developments was ‘‘simply a sales and marketing company’’ and that its liquidation would not have any effect on the development.

He said that 63 per cent of the initial 400 apartments had been sold, and the scheme would be completed next year.

A number of people who paid deposits to Flash Developments for properties have already sought the return of their money, while others are putting together an action group to try to recover their money, following a 16-month delay in starting the project.

Flash Developments went into liquidation last week following a court petition by Hays, an international recruitment firm which was owed money by the firm. The liquidator, KPMG accountant Kieran Wallace, is examining the company and its links with the Ciaran Maguire Group.

He is seeking all details relating to the Cape Verde project. Maguire said that Flash Developments had lost a significant sum of money due to a bond deal with a now defunct British company called Exchange Insurance.

While this prompted the liquidation of Flash Developments, he insisted that the project was going ahead.

He said that the first phase of the development was valued at €100million and would include apartments and a five-star hotel. Maguire said Flash had a 15-year licence with the Cape Verde government to build on the island, and would ultimately build developments valued at €1.8 billion over that time."

Ciaran Maguire Group Announces Granting of Planning Permission in Boa Vista

This communication was received earlier today from Ciaran Maguire (documents were attached and are available should anybody wish to see them - email info@OverseasCafe.com - the picture to the left is referred to in the text below):

"I have attached documentation for your perusal. I understand that you have a keen interest in Palm View Resort.

The documents attached outline that SDTIBM (Tourism Development Corporation of the island of Boa Vista and Maio) representing the Cape Verde Government, have signed a declaration forming a partnership between SDTIBM and Ciaran Maguire Group for the development of the tourist development project under the name Palm View Resort.

I can confirm that the tourist development project under the name Palm View Resort in Chaves North on a plot of 451,669m2 has detailed planning granted under the POT-Chaves regulations for a build environment of 51,5333,68 m2 with the Palm View Resort master plan being within the environmental build allowance. The agreement between SDTIBM and Ciaran Maguire Group under the POT-Chaves regulations authorizes Ciaran Maguire Group to carry out the construction of Palm View Resort.

I would also like to convey that the private purchase contract has been signed off by the two largest and most respected law firms in Cape Verde. The legal report shows that the Palm View Resort purchase contract duly fulfills with the Cape Verde legislation in force. The law firms have also confirmed that they deem there be no obstruction in signing the purchase contract having undertaken the due diligence.

I have also attached pictures of the machines now on site, I was supposed to be there for the PR event on the 19th of April when the machines arrived to Boa Vista however due to the disruption with the airlines I have had to postpone my trip until the 3rd of May, I can confirm however that machines have arrived and works have commenced on Palm View Resort despite the very clear and disruptive sabotage campaign against my Company. Under difficult circumstances I have delivered and most importantly protected my client’s investment.

I think it is very important to note that I have signed a contract with a new bond company Provident Capital Indemnity (PCI) to underwrite the Palm View Resort and I am very proud to say that the Palm View Resort is the ONLY development in the world to have the Guaranteed Rental fully bonded with the financial market place in London hailing the brokering of the deal as a “pioneering product that will change the overseas property market for good”. I understand that the previous bond company we entered into a contract with has now gone into administration that is why I personally outlayed in excess of €100,000 on carrying out a full financial report on PCI via Dun and Bradstreet, a market leader in carrying out financial reports on Finance and Insurance houses and the report shows that PCI have assets in excess 250,000,000 USD and deem to be very secure as an underwriter for Palm View Resort.

On a personal note I would like to say that on the back of works commencing on Palm View Resort, I will be creating 25 new positions based in Dublin within my Company and a further 15 positions in the first quarter of next year as well as 1300 positions for the construction of the resort. I believe that we need to back entrepreneurs and avoid putting obstacles in their paths as we are fundamental to getting Ireland back on its feet.

I anticipate your next question to be” what about the clients looking for refunds etc”, I would like to take this opportunity to outline the actual facts rather than uneducated guesses that appear on forums. As I mentioned the previous bond company we entered into a partnership with has now gone into administration and effectively taken nearly a million euro of clients premiums and it is these clients who are looking for refunds even though there money has gone to Exchange Bond and NOT my Company. I have given the clients an undertaking that I will personally repay their deposit even though Begbies Traynor (Administrators appointed for Exchange bond) have formally informed me via a written letter that I received a few days ago that I will not receive any compensation for the loss of nearly 1 million euro as the first people to get the assets of the company will be the banks (surprise,surprise). I made a commitment to these clients and I will refund all clients however this can be a 4or 5 month process as Ciaran Maguire Group’s credit line facility is structured to be tied into stages of construction.

I think it is worth pointing out and I hope you agree that with all the unethical codes of business our country is practicing between the banks, the Developers and the politicians that I am being extremely harshly judged. I set about building a stunning development in a stunning location and through very difficult times have achieved my objectives and formed strategic relationships with the Government of a country that I believe to be the European Caribbean and believe is destined to become the number one sun destination for Europeans over the next ten years, and since signing our partnership agreement, Ciaran Maguire Group will become the biggest developer in that region.

I understand that some clients have lost money through Exchange Bond but I personally have been left with bonds with a value of nearly 10 million euro that is now worthless to me. I will still undertake to refund every one of our clients as it is morally the right thing to do. The clients that have stayed with Palm View Resort have done so because they know me personally and knew despite the adversity I would deliver and subsequently since the commencement of construction and the introduction of the new bond company, there investment has now increased by approx 27%.

As a leading entrepreneur of this country who wants to create success and new opportunities as well as creating employment I would urge you to support Palm View Resort. I do understand that you have to ask certain questions and by all means ask any relevant questions, but myself and my personal associates do find some of the comments posted on the forums highly offensive as my only objective is to build Palm View Resort and I am now happy to say that despite the delays and frustrations the first 6 blocks, 28 villas and the Palm View hotel looks set for completion by the end of December 2011.

I would also like to say that as part of the partnership agreement I have with the SDTIBM, I will be constructing a new school for the island as well as hundreds of social homes. Ciaran Maguire Group looks forward to a very fruitful relationship with the Cape Verde Government as well as the people of Cape Verde. Our plans and partnership agreements means we will be developing in Cape Verde for the next 15 years.

On a final note I would like to comment on an issue that appeared in the national paper and indeed your forum in regards to an outstanding issue I have with a recruitment agency, without going into to much detail, the amount in question is very nominal but I refuse to pay something that is simply not justified and in this case the agency provided me with someone that was sacked after 16 business days for theft within the company. The agency still requested a full payment on their invoice which I contested, I offered a payment which I deemed to be fair however it was rejected and subsequently the matter went before a court and the courts agreed with my case and a settlement payment has been finalized. I think its worth pointing out that on the day this story appeared in the press and subsequently blasted all over the forums, I was actually signing contracts with the builders for the commencement of construction on Palm view, an agreement worth tens of millions and which as outlined above will create new opportunities and many new jobs as I will be implementing Irish project managers and engineers on the project. This deal was greeted with great joy and optimism in Cape Verde however there was “nothing” positive written or said back in Ireland and I believe that the constant negativity being displayed not just about my project but anybody who dares to be successful in these current times will have a major impact on this countries entrepreneurs. I was invited to the entrepreneur expo in the RDS on Friday last were I met with Gavin Duffy who has extensive experience working within the press and as a key note speaker, he emphasized the damage the negative press was having on our country and actually urged entrepreneurs to remain focused and avoid reading the constant negative press.

I do recognize that some mistakes have been made on Palm View however this was due to my Company receiving assurances that final planning would be granted within 3 months of commercializing Palm View and it has subsequently taken 22 months which is frustrating for everyone and then the moving of the location which was done for no other reason than we were informed that if we moved to the south of the island there was less red tape and planning would be finalizes sooner than on the plot on Chaves, this turned out not to be the case but we were informed of this directly from the head of State Patrimony in Cape Verde, again I have to stress that our objective was to commence works on Palm View and to develop a Resort in what I believe to be a stunning location and to create success for our investors and for my Company which we have now managed to do.

I welcome any more relevant questions and hope that the outlined good news story reaches your audience. God only knows this good news is long over due.

Kind Regards

Ciarán Maguire

Chairman & President

CastleBaggot House,
Baldonnell,
Dublin 22.

Ph: +353 1 6251542

Ph: +353 1 6251544

web: http://www.ciaranmaguiregroup.com

http://www.palmview.ie"

Exchange Bond Company Goes into Administration

The Exchange Insurance Company Limited ("ExCo"), a European specialist general insurance company authorised and regulated by the Financial Services Authority (FSA), with headquarters in the City of London, has entered administration. ExCo also maintained an administrative operations centre in Essex and an administrative office in Dublin.

The company will be quite well known in Ireland as the Exchange Bond was the instrument through which controversial Irish developer, the Ciaran Maguire Group (also operating as Flash Developments and Palm View Resorts), has been guaranteeing deposits on a new off-plan development proposed for the island of Boa Vista in the Cape Verde Islands. 

The Exchange Insurance Company's website currently says: "The Company is currently unable to pay creditors and meet claims and has, therefore, sought protection of the Court through the administration process whilst it is seeking to resolve its financial difficulties."

The Exchange Insurance Company Limited describes its business as the underwriting and marketing of the Exchange Bond and the Completion Bond.

An Exchange Bond is a surety bond or a form of financial guarantee. It acts as a substitute for the cash deposit given by buyers to vendors at the time of exchange of contracts in residential house purchases. The property vendor agrees to accept the Exchange Bond instead of cash. The buyer pays the entire purchase price at completion.

A Completion Bond is a financial product for use with deferred payment/equity schemes when buying property. It is a surety bond that guarantees the full deferred amount to the seller (usually the home builder) in the event the buyer fails to make the deferred payment due on the property within the time period allowed – usually 5 to 10 years.

Since March 6th last the company's website has carried the following message:

On 5th March 2009 Neil Mather and Christopher Morris of Begbies Traynor, 32 Cornhill, London EC3V 3BT were appointed joint administrators of The Exchange Insurance Company Limited.

The Exchange Insurance Company Limited is in administration. Its affairs, business and property are being managed by the joint administrators, who act as the company’s agents and without personal liability.

In the first instance, all enquiries as regards the status of bonds issued by the company should be directed to its offices in Great Dunmow. All enquiries will be dealt with as soon as possible by the available staff.

The administrators are working to secure funding to maintain the business as a going concern whilst the FSA approval process is undertaken ahead of a potential refinancing of the business. The administrators are already speaking to a number of interested parties and would invite any other interested parties to contact them urgently by e-mail directed to richard.goddard@begbies-traynor.com.

All creditor claims relating to the administration should be directed to the administrators’ offices at 32 Cornhill, London EC3V 3BT. All correspondence should be marked for the attention of the joint administrators of The Exchange Insurance Company Limited - in administration.

Please send any general queries that you may have to enquiries@exchangebond.com

Ends

This is only an excerpt of the posting. We have put a full version on our own website in case this website drops the content at some stage. You'll find it here. 

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Flash Developments Issues Formal Statement on Palm View Resorts

Here is a 'formal statement' issued by Flash Developments on the Boa Vista Exchange website on Friday last, March 6th.



Flash Developments would like to issue a formal statement.



While we recognise and acknowledge the frustrations in relation to the current delays, we would like to point out that these delays are out of our control and unfortunately are common in Cape Verde. However we have the best people on the ground working on our behalf to speed up the process and we have been given the assurances that by the end of this quarter we will have all the relevant documentation in place allowing us to commence construction by the end of the second quarter 2009.



It has always been the priority of Flash Developments to ensure all our clients have been regularly contacted by our staff and kept fully informed and up to date on the developments of the Palm View Resort. We are delighted to announce that we have chartered a 180 seater aircraft for a complimentary all inclusive inspection trip to Boa Vista on the 24th – 26th of April for our existing clients and new clients as well as their legal representatives. On this visit our clients and the their lawyers will get an opportunity to speak directly to Cape Verdian (sic) officials and planning authorities while also having the opportunity to sit back relax and experience a taste of what the Palm View Resort will have to offer.



It is our belief that some of the comments posted so far have been irresponsible and unjustified. We are confident in the knowledge that you will not find any other developer any where in the world that would out lay in excess of €300,000 for a complimentary inspection trip if they were not 100% certain and confident of delivering on their promise. Our promise to our clients is to deliver an unrivaled world class Resort and to ensure that their investment in Palm View continues to be a smart and secure one.



We would welcome the opportunity to answer more specific questions directly. Please feel free to contact our office at any time and our staff will be more than happy to answer any of your questions. You can also contact our office if you would like to attend our inspection trip, allowing you to speak directly to the relevant Cape Verdian (sic) Authorities which will give you the opportunity to make a truly informed decision rather than listening to “hearsay” posted on forums.



Colm Quinn

Global Operations Manager

Flash Developments



Ends



This statement is taken directly from the Boa Vista Exchange Website.

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Editorial from OverseasCafe.com

Ciaran Maguire Story Features in Sunday Tribune

The saga of the Ciarán Maguire Group (CMG) and its proposed Palm View Resort development in Cape Verde featured on page 10 in the news section of the Sunday Tribune yesterday. This in itself is nothing exceptional, the story was bound to feed into the media at some stage. What is odd is that OverseasCafe.com is quoted liberally in the piece, despite the fact that the website has never been contacted by the Sunday Tribune in relation to this topic. It is also made to look like the OverseasCafe.com has been threatened with legal action or had legal action taken against it by CMG, which is not the case.

It looks awfully like the journalist, Mark Hilliard, got the piece predominantly from putting together pieces from our previous blogs on the subject. There's nothing particularly wrong with this, but if we were to be quoted, it would have been nice to have a phone call or an email. CMG is quoted as well and we have no idea if they were contacted either. We didn't like to ask.

Anyhow, here's the piece for those who haven't seen it.

Property developer takes legal advice on website hosts

Mark Hilliard

AN exclusive Irish overseas developer has launched legal proceedings against a number of website hosts over highly critical remarks on a €2.2bn seven star resort planned for Cape Verde.

The Dublin based Ciaran Maguire Group has taken the action over what it deems to be "highly offensive" remarks made about its property development which is currently seeking investors.

The Palm View Resort in Cape Verde, off the western coast of North Africa, is comprised of hotels, a golf course, villas and apartments. As part of the high end scheme, the group has also announced plans to lease two Boeing 737 aircrafts for at least four years which will operate from Dublin, Manchester and London Gatwick airports.

Investors are invited to use exchange bonds as an alternative to cash deposits on the properties whose reservation fees run from €10,000 for a studio to €50,000 for a villa.

However, in recent weeks question marks began to appear around details of the development on a number of property related websites, blogs and forums.

When approached by the Irish website Overseas cafe. com to clarify many of the questions being raised, Flash Developments – an arm of the Ciaran Maguire Group – responded by confirming that legal action was now being sought.

"We have been made aware that numerous blogs and web forums that are posted in relation to Ciaran Maguire, Flash Developments and the Palm View Resort have gone past the point of asking questions and gone into the category of what we and our lawyers believe to be defamatory content," they said in a statement. 

"We have started legal proceedings against the identified hosts of these websites."

Although it is not clear which internet sites will be issued with legal proceedings, the workings of the Ciaran Maguire Group have been openly discussed on several popular forums.

The contact came in response to an earlier article on the website which alluded to the "very sudden" emergence of an Irish overseas property developer which they said was relatively unknown and seemingly prepared to operate in a very difficult economic environment.

"At a time when most newspapers couldn't sell an ad to save their lives, along comes Ciaran and his group and starts advertising liberally," Overseascafe.com claimed.

HAVE TO CUT FROM HERE (the piece below this only appears in the online version)

Contact between the site and the developers led to the tabling of over 50 questions, based on those same concerns that had fuelled recent internet debate.

Amongst the questions, the group was asked to clarify where it had suddenly come from, whether it actually owned land in Cape Verde, why the development was moved from its original location and whether or not there was even any access to the site.

Another question asked for clarification on exactly what 'star level' the development will have.

The Ciaran Maguire Group responded to a number of 'relevant' questions explaining that they had entered into an officially documented deal to purchase 98,000sq m of land from a Mr Martiano Oliveria and that they changed from the original site due to delays in processing paperwork. 

They clarified that a local company, Loids Engineers, have been engaged to begin work which should commence next year and that Flash Developments would extend a coastal road leading to the site. 

In relation to the star system, they wrote: "Different countries have different legislation in respect of this rating, Palm View is being listed as a seven star development in accordance with Cape Verdean legislation." 

"It has always been our goal to develop one of the world's most luxurious resorts and we are confident that we will achieve our goal.

"Some of the information being hosted and posted (on the sites) is deemed by Flash Developments to be highly offensive. We are outraged by allegations concerning our credibility, integrity, bona fides and business acumen skills."

December 21, 2008

You'll find the original story here.

Replies from Flash Developments

We've received a reply of sorts from the Ciaran Maguire Group, aka Flash Developments, relating to the queries we put to them last week.

We're quite disappointed that the group has decided that the vast majority of the queries we put to them are irrelevant. We know we are not alone in feeling that questions relating to land ownership, planning and master plans for the development would be relevant, but it would appear that CMG don't agree with us on this, which is a great pity.

In any case, this is the reply we got:

We would like to take this opportunity to reply to all the Relevant Questions that have been asked. We welcome your questions and comments, as this enables us to clarify any uncertainties. We have also been made aware that on numerous blogs and web forums that the posts in relation to Ciarán Maguire, Flash Developments and the Palm View Resort, have gone past the point of asking questions and now gone into the category of what we and our lawyers firmly believe to be serious defamatory content. Subsequently we have started legal proceedings against the identified hosts of these websites.

Moving on to what we feel are the more important issues and questions. Please note that the following information is factual and we have provided official documentation to outline this.

Flash Developments had recognised that Boa Vista in Cape Verde was an emerging market with massive potential, after our investor surveyors had undertaken all economic and feasibility studies, a plot of land was identified, at which point our lawyers carried out all the relevant due diligence. Subsequently on the On the 5th of July 2007, Flash Developments entered into an agreement with Mr. Martiano Oliveria for the Purchase of a 98,000 sq meter plot in Praia De Chaves. This Agreement was inscribed in the town hall of Boa Vista under number 5438.

Praia de Chaves is located within a ZDTI zone and currently falls under the control of SDTIBM in respect of planning permission and project approvals. After having met on several occasions with SDTIBM officials, including one of its Directors Francisco Neves, it became apparent that it would take longer than anticipated to receive all documentation and licences which would allow us to commence construction. It was at this point that the decision was made to relocate Palm View to Curral Velho which lies outside the ZDTI zone and falls under the jurisdiction of State Patrimony. Due to the plot of land being significantly larger at the new location, we were able to incorporate more first class facilities such as a Championship Golf Course and Marina into our Master Plan. We are confident that this will add further solid capital uplift to future property values to the benefit of all our clients. Since then we have met and have continued to liaise with Paulo Soares Director General for State Patrimony who fully endorses the Palm View Development. We have received a letter from Paulo Soares( appendix 1) stating that he has received all the documentation from us and is now assessing the information before signing off on the relevant protocols. We expect to receive these protocols within the next 2- 3 weeks, which will be posted on our website. NDR a well respected UK law firm that specialise in Cape Verdean and Portuguese law and who represent the majority of the clients on Palm View, have spoken directly to Paulo Soares and he has given assurances that land title will be transferred and Licences issued by year end 2008, allowing construction to start by start of first quarter 2009.In turn NDR have advised their clients to proceed with their purchase of the Palm View Resort.

To coincide with the launch of Palm View we personally chartered a Boeing 737 aircraft to take over 100 potential clients and their legal representatives Neville De Rougemont, as well as journalists including the UK’s Financial Times who wrote a very positive article on an all inclusive inspection trip. This inspection trip was completely endorsed by Cape Verdean Officials and was attended by the Mayor of Boa Vista. The trip in its entirety was a massive success, with the result that all clients that attended the trip purchased units on Palm View.

We would like to Clearly Highlight that all monies received from the inspection trip and subsequent sales were placed into an Escrow account, with the Clients Lawyer NDR being the Escrow Agent (Appendix 2) until such a time that all the relevant licences were received.

To coincide with the current global market we along with most developers that sell off plan had to revise our payment structure to facilitate clients that are finding it difficult to raise the necessary capital. We were able to broker an innovative deal with a UK based bond company that is regulated by the FSA called Exchange Bond and subsequently a protocol was signed between Flash Developments and Exchange Bond (Appendix 3). New contracts where then put in place incorporating the bank bonds and in turn these contracts were signed off by the clients lawyers NDR. This concept was applauded in the UK by agents as being the first of its kind, subsequently Palm View Resort was one of the few developments that continued and still continues to sell in the current market.

The procedure for using the bonds is quite simple and straight forward. Clients transfer minimal deposit for the unit that they wish to reserve. Flash Developments then in turn use the deposit to pay the premium on the bond as well as all other related charges. This enables Flash Developments to receive a bank bond from Exchange Bond in lieu of a large cash payment. This means that clients don’t have to release any further money as is the case in most off plan developments until the completion of the Resort. We have also stipulated on our reservation form that all money that is received by Flash Developments is fully refundable should a client choose to withdraw from their purchase.

Any transactions involving client’s money have always been kept “Clear and Transparent”. Money is either held in Escrow or if clients choose to go with the bond option, a minimum amount is put down in a holding account in Allied Irish Bank. This account is exclusively for the money to be paid on the premiums on the bonds and other related charges. All contracts issued to clients are signed off by NDR. We deem some of the comments posted on some forums to be highly irresponsible and fully unjustified given the gravity of many of the allegations alleged.

Construction

We have commissioned Loids Engineers to carry out initial engineering works on our behalf (see appendix 4). Loids engineering are a local Cape Verdean company that have extensive knowledge of the building industry in Cape Verde. They are currently involved in the Sambala Project in Cape Verde, which at present is one of the biggest developments on the islands. Loids had taken on provisional works on the old site in Praia De Chaves before it became apparent that more delays were imminent. Once the decision to move to Curral Velho had been confirmed Loids were then instructed to move to Curral Velho where they are currently carrying out provisional works (Appendix 5) allowing us to commence construction in the first quarter of 2009, where as on the original plot we were given no definitive start date.

As part of our investment into the islands, Flash Developments are also extending the new costal road that is scheduled for completion in 2010(see appendix 6). The work on the new costal road has already commenced and its completetion date is set to tie in with the opening of Phase 1 of the Palm View Resort and new 2000 room Riu hotel in Curral Velho. The link road that Flash Developments propose to build will link Palm View to the new costal road, in the interim to facilitate the moving of heavy machinery, equipment and materials we will be carrying out extensive improvements on the existing road, these improvements will allow for easy access to the site.

Clarifications

Point 1

Palm View is currently being marketed as a 7 star resort, we have been working closely with AA official and have been given the specification list, amenities list and staff quota requirements list that with the objective to receive 5 stars from AA, which is a recognised Global Standard. With this in mind our architects and planners factored these points into the design concept of Palm View allowing us to achieve our goals. Different countries have different legislation in respect of this rating, Palm View is being listed as a 7 star development in accordance with Cape Verdean Legislation. You will find examples of this in UAE and also in South East Asia. However it has always been our goal to develop one of the world’s most luxurious resorts and we are confident that we will achieve our goal.

Point 2

Palm View Resort is a 2.2 billion euro development. This figure relates to the sale price of Palm View which includes the Hotels, Golf Course, Villas, Apartments and Studios. At NO point did we mention that we had a credit line for 2.2 billion euro. Our official statement is that the 2.2 billion euro is part of our seven year plan for Boa Vista.

Point 3

With regard to our website, we accept that several grammatical errors were made. At present we outsource our web design, 3D renderings and CGI fly through to a company based in Uruguay called NEXUS. The website went live as a test some weeks ago without a final sign off from Flash Developments; subsequently a lot of information was picked up in this time such as grammatical errors and spelling errors which have now been amended.

Point 4

In relation to the information of our aircraft, we currently have a deal in place to wet lease two Boeing 737 aircrafts. These aircrafts will become operational at such a time that coincides with the opening of Palm View Resort. The term of our wet lease will be over 48 months with the option to renew the contract for a further time period or with the option to acquire the aircraft ourselves. The 3 airports that we intend to fly from are Dublin, Manchester and London Gatwick.

Point 5

In reference to our involvement in the construction industry, we would like to point out that our website mentions that we have been involved in the construction industry since 1988 and not formed in 1988. This was the date that Flexi Fabrication was founded by Christopher Maguire, who is one of the company directors of Flash developments. The reason we mentioned this, is to enable us to convey the experience that a member of our senior staff has within the construction industry. Flash Developments is the vehicle being used to Develope Palm View. We clearly stipulated that once overseas land was acquired, Flash Developments were then brought in to Build and Design Developments on the acquired land.

With Respect to our involvement in the Dundrum Shopping Centre and the K Club, this is derived from the company Flexi Fabrication, Ciarán’s fathers company. Ciarán headed up a division of the company namely Flexi Fit and managed both of these projects in relation to all works that where undertaken by the Flexi Group.

Conclusion

We would like to take this opportunity to thank you for your relevant questions. It is in everyone’s interest that full clarity is achieved; however there have been a lot of unfair comments posted. To date we have spent a lot of money, time, effort and resources on the project, we are one of the few companies that are hiring staff in this ever increasing difficult climate at the moment. Over the next 14 months our Dublin offices will take on over 80 staff and we will be contracting Irish engineering companies and surveyors to work on the ground in Cape Verde. As well as this we will also be creating in excess of 3000 jobs over the next 7 years in Cape Verde. These unfair comments being posted and misguided information hinders our progress. It is our belief that due to the non comprehension of our innovative and unique payment terms, that this has lead to people sabotaging our business acumen. Some of the information being hosted and posted, is deemed by Flash Developments to be highly offensive. We are outraged by allegations concerning our credibility, integrity, bona fides and business acumen skills. We encourage all our own clients to carry out all relevant due diligence and we are always on hand to answer any questions clients may have.

While we welcome any questions, it is clear that some forums are currently operating under the policy “Shoot first, Ask questions later”, we would however appreciate more respect and cooperation from the relevant forums and request that forums conduct themselves with a much more suitable decorum.

End 

This document is not signed but it was received from Deirdre Pluck, Global Marketing and Sales Manager. 

We have copies of all the appendices if anyone wishes to see any of them, we don't have a facility to upload them here. Just email info@overseascafe.com if you want a copy and we'll send them on.

If you have any questions for CMG they can be directed to deirdre@palmview.ie or you can visit the company's website. 

Queries for Ciaran Maguire about Cape Verde development

Just over a week ago we were contacted by the Ciaran Maguire Group, who were not very impressed with our previous blog on the company. They had nothing against the blog per-se, but were worried about some of the links to forums questioning the group and its plans for the Palm View Resort on Boa Vista island in Cape Verde.

We refused to remove the blog on the grounds that we felt it linked to a number of sources of information that would be invaluable to potential clients wishing to make a judgement on whether they should consider purchasing on this development or not. We instead, proposed putting a list of questions to the company which we felt would help ameliorate some of the worries potential investors, and current investors, with the group might have. They agreed that this would be a good way to go forward.

We submitted the list of questions on Wednesday November 12th and asked them to respond to them by the following Friday, November 14th. On November 13th the company asked if they could be allowed until the following Monday, November 17th to complete the answers to the questions. We agreed to this. It is now Wednesday November 19th and, to date, all we have heard is that they are still working on the replies to the questions.

We made it widely known that we were asking these questions of the company and at this stage we feel we have no option but to publish the list of questions, even though we have, as yet, received no reply to any of them.

Despite the lack of a response from the company to date we would have to stress that we have no evidence of any wrongdoing on the part of the Ciarán Maguire Group. We do, however, feel that they have left a lot of questions to be answered and are very disappointed that they have, to date, reneged on their commitment to provide answers to some of these questions.

If we do get answers to some or all of the questions from the company at any stage in the future we will list them here as soon as they are received.

1. Where has the Ciarán Maguire Group suddenly come from? Nobody in Ireland has ever heard of them before. This seems very strange. A company starting a big ambitious project such as this, generally does so on the back of a strong track record. What is Ciarán’s track record in the development field either in Ireland or overseas?

2. Does the Ciarán Maguire Group actually own any land in Cape Verde at this point in time? If so, can you produce documentary evidence of this title?

3. Why was the project moved from the originally mooted Chaves Beach location, where many apartments had been sold, to the new one in Curral Velho.

4. In a post on the Boa Vista Experience website on September 17th last Colm (Quinn I presume) posting as ‘Flash Developments’ claimed that “As it stands we have contracted Liods engineering to start work on the site. they are currently on the ground doing what they do. We have recently sent across to the engineering company and the builders the sum of €4.5 million euro. As a development company we are not going to send across such a vast amount of cash without the land etc being purchased.” This statement would obviously indicate that development work had started in the Chaves Beach location.

5. On October 30th, in Colm’s last post on the forum, it was announced that, far from building having taken place on the Chaves Beach plot, it was now being moved to Curral Velho. This hardly seems credible. Was there ever any development on the Chaves Beach plot?

6. What are the workers that were employed on this project now doing?

7. Is Curral Velho not a ‘Protected Area’ on the island of Boa Vista?

8. Queries have been raised about the ability to reach the Curral Velho site. Investors are worried that roads are not planned to reach this area for some time and even when they do, they will be a long way short of the currently proposed site.

9. Can the planning permission for Chaves Beach really merely be transferred in a matter of a few weeks, as appears to be suggested? Surely such planning issues would need to be ratified by the government again and viewed in light of the new location and any planning restrictions that may exist there. This would, one would imagine, take months, if not years to complete.

10. In light of the above query, does the Ciarán Maguire Group have full planning permission for the proposed development in Curral Velho? If so is it possible to see documentary evidence of this?

11. Does CMG have a copy of the documentation on the Exchange Bond Guarantee which is being used in this project?

12. Who holds the funds that have already been paid in escrow? Is it possible to see a legal guarantee that CMG has no access to this account until building has completed?

13. Does CMG have a copy of the documentation showing the commitment of Banif to provide a 100% mortgage on completion?

14. Who is providing the guarantee for the 10 year 7% return on the properties? How can purchasers be assured that this guarantee will, indeed, materialise?

15. Colm has said in his announcement on the Boa Vista Experience that the company has “been working closely with the Cape Verdian (sic) Government, who fully support and endorse our 2.2 billion euro development. In recognition of this multi billion euro investment in the islands, the Cape Verdian (sic) Government have ceded further government owned land to allow for massive improvements as well as ensuring no prolonged delays.” It has, however, been alleged that the Cape Verdean government run planning authority, SDTIBM, has not even received details of any proposed project for Curral Velho. Can you explain how this could be the case?

16. Can you pass on details of a government official with whom we can speak (outside of those directly connected with the project) to confirm that the appropriate land ownership and planning permissions exist?

17. The website also claims that “to facilitate the additional world-class facilities already in place the site is being moved to the prime location of Curral Velho in proximity to Santa Monica beach.” Surely Curral Velho is completely barren and there are no facilities of any description there, not even a roadway. What exactly does Ciarán mean by this statement?

18. Is Palm View Resort intended to be a Five Star Resort, a Six Star Resort or a Seven Star Resort? All three have been mentioned at one time or another on one or other of Ciarán’s websites or in newspaper articles. Confusion such as this tends to make investors very nervous, particularly when the developer himself appears to change the star rating on a regular basis.

19. Ciarán’s website says he has purchased hotels in Mexico & Miami. Can you outline which hotels these are and how much he paid for them?

20. Ciarán’s press release describes him as ‘an award winning entrepreneur’. Can you outline any awards he has won to date?

21. Why do apartment specifications and prices differ radically depending on what website they are found? E.g. http://www.palmviewresort.co.uk/plans/13.pdf and http://www.palmviewresorts.com/files/site-plan.pdf, two of your own sites, have completely different site plans on them.

22. Ciarán has “outlayed ‘€100m in land acquisitions … that include hundreds of hectares of prime sea front land in locations such as Brazil, Panama, Dominican Republic, Mexico, Miami and Cape Verde.” Could you outline where the plots are in Brazil, Panama, Dominican Republic, Mexico and Miami, how much they cost and at what level of development they currently reside?

23. Ciarán’s site claims to be developing three golf courses worth €110m. to be designed by the worlds leading course architects. Who are these architects exactly and at what stage are they with plans for these courses? The courses are, apparently, set for completion by 2011 so they should have at least broken ground and have had some of the necessary infrastructural work completed at this stage.

24. Where did Ciarán manage to raise the €100m necessary to purchase such lands without ever coming to the attention of the business community? Figures like this get bandied about a lot in the property industry but it is, nonetheless, not easy for someone with no previous development credentials to come by such funds.

25. The Casino portion of the web site claims that “Currently the worlds most acclaimed Architects, Engineers and Hotel designers are working on the Palm View Resort.” Could Ciarán name some of these so that we could ask them for comments about their involvement in the project.

26. Those who have visited the Blinkers Casino in City West claim that it is a long way from being a 5-Star Casino as is claimed on the website. Is this the type of 5-Star level to which casinos, and other facilities, in the Palm View Resorts will aspire?

27. Ciarán’s site claims: "To date we have created millions of Euro for our clients by identifying the right investment opportunities..." Could he detail or give examples of some of these opportunities?

28. The Ciarán Maguire Investments section of the website specifies an investment “offering 50% return over 24 months.” As this is obviously a financial offering we would like to know if it has been passed by IFSRA? We would also like to know what, exactly the investment is as it sounds like a very welcome return in such a poor investment environment.

29. We would like to know the names of the top team of professionals mentioned in the Investment portion of the site and what their qualifications are to manage such an investment portfolio.

30. We’d also like to know why the phone numbers quoted on this Investment portion of the site lead to two private houses in Co. Tipperary who know nothing of your company.

31. Some current clients of the company would like to see proof of the €2.2 Billion line of credit Ciarán says is being offered by Banif to complete this project at a time when banks worldwide do not have the ability to lend in any capacity, particularly not for property development.

32. Can Ciarán justify the inclusion of 25 sq. m. studio apartments in a six or seven star development? Surely such a star rating implies a level of uber-luxury that simply cannot be provided in such a small space.

33. Why were the planes changed from 747’s to 737’s and the London airport changed from London City to ‘pending negotiations with Gatwick’?

34. Has Ciarán, purchased 2 x 747 jets or is he simply hiring them as required? The website stated that he had purchased two such jets but it now says that ‘two 737’s have been acquired’, even though the picture on the website is still a 747 as far as we are aware. There is a substantial difference between the two and it has been outlined that the former could not be accommodated in some of the airports mentioned, London City and Boa Vista included.

35. The airline industry is a very tough one at the best of times, but recent economic realities have made it impossible for all but the strongest companies to survive. What is Ciarán’s experience in the airline industry that would indicate that he can succeed where most airlines have, and are currently, failing?

36. Could Ciarán explain the assertion - "To me it just made great business sense having our own aircrafts, it enables us to have a complete monopoly when entering into emerging markets."

37. Are the luxury brands on the CMG website being used with prior agreement from the companies in question?

38. Flash developments states that the complex is being pre-fabricated in modules off-site by a German company and this work is already underway. Could Ciarán provide details of the company undertaking the work so that it may be independently verified?

39. Why does the website claim that your team of directors has been assembled after a worldwide search when three of them are family members and two more are Irishmen in their twenties?

40. What connection does Ciarán’s company have with the K-Club and the Dundrum Town Shopping Centre?

41. Why are there no bios for the lead executives on the website?

42. Ciarán’s bio suggests that, once the overseas land had been identified he formed Flash Developments to secure its purchase. On the Flash Developments site, when it was online, it claimed that Flash Developments was formed in 1988. This would have been at a time when Ciarán was 10. This hardly seems credible.

43. The Flash Developments site said (when it was online) that the company “now plays a key role in the development of many of the most prestigious developments in Ireland.” Could Ciarán outline some of these developments are and what the company’s role was?

44. According to CRO records Flash Developments was registered only last year and has not yet filed accounts. How can this be if it has been around since 1988?

45. The first sentence of Ciarán’s bio says he is “one of the Worlds Youngest Chairmen and Presidents of a Multi Billion euro Corporation.” Where is the Ciaran Maguire Group registered? When did it last file accounts? What was its turnover last year?

46. As a company registered in Ireland involved in the property services industry it is necessary, by law, to be registered with the NPSRA. Is the Ciarán Maguire Group or Flash Developments registered?

47. Why do the contact details for ownership of the ciaranmaguire.com web domain list an address in Dublin, Uruguay?

48. Ciarán’s bio suggests that he is a true philanthropist. Can you outline some of this philanthropy to date?

49. Why does Ciarán use such a blatant rip off of a Warren Buffet quote as his own on the intro to his website?

50. Were Ciarán Maguire and Brian Mullen members of a boy band called NV some years ago?

51. How many of each property type has the Ciaran Maguire Group currently sold on the Palm View Resort development?

Response

Ciaran Maguire has come back to us with answers, of sorts, to some of the above queries. Unfortunately the company deemed most of them 'irrelevant', but you'll have to make up your own mind on this. You'll find the answers that were provided here.

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