Fortuna Estates Update

You'll find an update on the Fortuna Estates story on the website here. As well as an outline of the case to date, there is some interesting insight from Jerome Andree, founder of Fortuna Estates, which those with an interest in this case might like to read. The questions put to Andree, and his responses, are printed below this piece.

If you follow this link it will lead you to regular updates from a firm of Marbella lawyers who are involved with the case and are representing some Irish investors in the case against the owners of Fortuna/Oanna.

Here are the answers to queries put to Jerome Andree by OverseasCafe.com. These opinions are not those of the website or this blog, they are exactly as received from Mr. Andree. Please be aware that Mr. Sathasivam was given an opportunity to give his side of the story, but he refused.

Were you the founding director of Fortuna Land (also known variously as Fortuna Estates, Fortuna Properties, Euroland and Oanna Group)?

( I WAS INVOLVED WITH THE FORMATION OF FORTUNA ESTATES WHICH LATER BECAME FORTUNA LAND TO BETTER REFLECT THE CORE BUSINESS. ALL OTHER COMPANIES WERE THE MANIFESTATIONS OF JAMES SATHASIVAM AND WERE INITIATED AFTER I WAS REMOVED.

A lot of Irish investors are very displeased that their 'investments' in your projects have now, apparently, disappeared. How would you respond to their fears that their money has simply been squandered and will never be seen by them again?

UNDER MY WATCH ALL THE LAND WAS BOUGHT AND PAID FOR IN FULL. THIS WAS GOOD LAND AND THE CLIENTS WERE CORRECTLY GIVEN THEIR TITLE DEEDS. WITHIN THE CONTEXT OF THE WORLD RECESSION. THEY SHAREHOLDERS OWN THE LAND. CLIENTS WERE ENCOURAGED TO DO THEIR DUE DILLIGENCE-WHICH MOST OF THEM DID BEFORE THEY PARTICAPATED- OR THIS WAS THE POSITION UNTIL MY REMOVAL. AFTER MY REMOVAL I HAVE NO IDEA ON HOW THE CLIENTS INTERESTS AND INVESTMENTS WERE MANAGED AND MANIPULATED BY JAMES AND HIS COHORTS.

I rang James Sathasivam, who many clients seem to blame for the losses in the company. He denies this fervently, claiming that all the losses in the company were perpetrated before he was brought in to 'save' it. He alleges that he was brought in merely as a smokescreen to cover for the profligacy in the company during your tenure and that he has been as badly treated as clients that have lost money. In fact he claims to be owed quite a lot of money himself.

UNDER ADVICE, MR. SATHASIVAM WAS EMPLOYED WITH MR ATUL SHARMA OF THE ZENITH GROUP IN LONDON BECAUSE OF HIS SO CALLED EXPERTISE TO FLOAT FORTUNA ON THE AIM MARKET WHICH I WAS ASSURED WOULD BE OF ULTIMATE BENEFIT TO OUR CLIENT BASE. HE WAS PAID AT LEAST 250.000 EUROS TO FACLITATE THIS.)

The judge involved in this case in Fuengirola alleges that €65m has been taken through Fortuna's various guises and siphoned to bank accounts in Cyprus and Delaware, among others. Do you know where he got this figure and is it, in your estimation, correct?

FORTUNA ESTATES AND FORTUNA LAND, THE TWO ENTITIES I WAS INVOLVED WITH BROUGHT IN CONSIDERABLY LESS THAN THAT FIGURE.

Are significant monies from Fortuna now resting in foreign bank accounts as has been suggested?

I HAVE NO IDEA, i SUGGEST YOU ASK JAMES SATHASIVAM OR DANIELLE EMBOULAS.

Do you feel that the property owned by the company/ies in Spain is actually worthless as is suspected by many of the clients.

IT IS WELL KNOWN THAT PROPERTY VALUES HAVE BEEN HARD HIT IN SPAIN, THAT ALONG WITH THE HUGE OVERSUPPLY OF INVENTORY AND NEW RIGID PLANNING REQUIREMENTS HAVE EFFECTED ALL INVESTORS IN SPAIN AND INDEED WORLDWIDE. HOWEVER I BELIVE THAT IN THE LONG RUN LAND WILL ALWAYS APPRECIATE IN VALUE: IT IS THE ONLY COMMODITY ON EARTH THAT THERE IS NO MORE OFF.

Was Fortuna (Estates, Land, Properties) essentially set up as a cover for an elabourate boiler room scam as is being alleged on a variety of web forums?

WHILE I WAS INVOLVED FORTUNA LAND WAS OPERATED LOUD AND PROUD WITH CLIENTS ENCOURAGED TO VISIT, MEET THE PRINCIPALS AND STAFF FACE TO FACE.

I WOULD SAY THAT 30-35% OF OUR CLIENTS DID VISIT US IN SPAIN AND WE TRAVELED TO THE UK AND IRELAND UP TO EIGHT TIME A YEAR TO ALLOW CLIENTS THROUGH

TRADE SHOW OR SEMINARS TO MEET US.

Have you, as has been alleged, previously been involved with other boiler room scam operations such as the promotion of shares in Spantel by Goodman Hart?

YOU HAVE YOUR MIND MADE UP WE WERE A BOILER, AS I INDICATED IN THE PREVIOUS QUESTION WE OPERATED IN A FULLY TRANSPARENT ACCESIBLE ATMOSHERE

WHILE I WAS INVOLVED.

Was there ever any intention of building anything on the land acquired by Fortuna? Many clients allege that there was not.

UNDER MY WATCH WE SPENT HUNDREDS OF THOUSANDS ON ARCHITECTS, CONSULTANTS, VALUATIONS AND LEGAL FEES TO OBTAIN APPROVALS.

THIS IS ALL WELL DOCUMENTED.

If it was not set up to con people out of money, why did the company operate under so many different names? PLEASE ASK JAMES SATHASIVAM AND DANIEL EMBOULIS. I WAS ONLY INVOLVED WITH FORTUNA ESTATES WHICH CHANGED TO FORTUNA LAND TO AS I SAID BETTER REFLECT OUR CORE BUSINESS. WHAT DECEPTION CAN BE PERCEIVED THERE WITH THAT NAME CHANGE.

If the company was not set up as a scam can you explain why the Spanish authorities seem so adamant that investors in the company have been defrauded?

THE COMPANY WAS SET UP IN A BOUYANT SPANISH MARKET TO ACHIEVE BENEFICIAL RETURNS FOR INVESTORS AND INDEED WE WERE THERE TO MAKE MONEY AS WELL.

What steps would you suggest that clients take to recover funds transferred to Fortuna?

AS SAID ABOVE I THINK ALL INVESTORS PRIOR TO MAY 2007 SHOULD HANG ON TO THE LAND THEY OWN. I DO NOT KNOW WHAT THE DIRECTORS HAVE DONE WITH THE FUNDS AND HOW THEY HAVE RESTRUCTURE AND MANIPULATED THE ORIGINAL COMPANY.

I REALLY CAN NOT COMMENT

Why were you removed as a director of Fortuna?

MY COMMONLAW PARTNER DANIEL EMBOULIS, WHO CONTROLLED FORTUNA, IN COSORT WITH HER LOVER JAMES SATHASIVAM HAD ME REMOVED WHILE I WAS VISITING SRI LANKA. THEY ALSO MOVED IN TOGETHER INTO THE HOUSE THAT DANIELLE AND MYSELF SHARED FOR A NUMBER OF YEARS. GREAT SOAP OPERA MATERIAL.

What is your relationship with Daniele Emboulas and what was her position in Fortuna/Oanna when it was shut down.

SEE PREVIOUS QUESTION. I PRESUME SHE WAS STILL DIRECTOR OF FORTUNA, I DONT KNOW THE MAKE UP OF OANNA AND THE OTHER COMPANIES THEY STARTED.

Have you, as is suggested on a number of forums, fled to Sri Lanka? If not, where are you now resident?

I HAVE BEEN COMING TO SRI LANKA EVERY YEAR FOR UP TO THREE MONTHS WHERE MY FAMILY ROOTS ARE. I WAS BORN IN SRI LANKA AND MY FATHER IS BURIED HERE. I WAS HERE TWO MONTHS BEFORE THE OTHER TWO SHUT THE COMPANY/COMPANIES AND RUN.

It is alleged that all PC's in the offices of Fortuna/Oanna were wiped of their information the evening before the police raided the offices. Do you know if this is true?

HOW COULD I. I HAVE NOT HAD ANY INVOLVEMENT AS I SAID SINCE MAY 2007.

If it is true do you know who may have taken this action and why?

AGAIN, ASK JAMES AND DANIELLE. IM SURE THEY HAVE THE ANSWER.

How much money did you make from Fortuna before you were removed from the company?

I MADE A GOOD LIVING. I WORKED FOR A PRIVATE COMPANY NOT A PUBLICALLY TRADED ONE,

If there is any further information you can offer that you feel may shed light on this very delicate subject I would be very grateful for it.

I THINK TWO SHORT POINTS, DURING MY PERIOD THERE WERE NEARLY 50 HAPPY STAFF. HAPPY NOT BECAUSE THEY WERE WELL PAID, BUT BECAUSE THE JOB WAS CLIENT ORIENTATED, AND THEY WERE HAPPY TO MEET AND WORK FOR OUR CLIENTS: YOU CAN ASK ANYBODY WHO HAS VISITED THE COMPANY WHAT THEY FOUND: THAT YOU CANNOT MANUFACTURE. THE VERY OPPOSITE OF A BOILER ROOM.

THE VERY FACT THAT I WAS "REMOVED" IN MAY 2007. CLEARLY INDICATES THAT I DID NOT HAVE THE ULTIMATE POWER IN THE COMPANY. THINK ABOUT IT …

Mr. Andree refused to answer questions on allegations that he had been imprisoned previously for fraud. He has made similar allegations against Mr. Sathasivam, who has also refused to answer the allegations.

Register now to receive our informative newsletter, save searches and tailor your OverseasCafe.com experience to your own needs.

__________________________________

For a selection of property from around the world click here.

For a listing of agents selling overseas property click here.

For independent articles on overseas property click here.

For advice on purchasing property overseas click here.

For news on the world of overseas property click here.

For new releases and product updates from agents around the world click here.

For a list of upcoming overseas property exhibitions around the country click here.

Fortuna Estates Raided by Fraud Squad

It would appear that rumours bubbling under the surface about the company best known as Fortuna Estates have proven to be correct judging by events last week.

Mark Stucklin reports in his Spanish Property Insight website: "The Spanish land investment scam run for years by Fortuna Estates has finally been busted, with the Spanish fraud squad swooping last week on several office in Mijas and Fuengirola, arresting at least 2 people, and questioning 20 others. This could be one of the biggest Spanish property scams to date, with hundreds, if not thousands of British and Irish victims. The Spanish authorities estimate that Fortuna Estates made at least 65 million Euros out of this fraud."

The company ran its operations over the past number of years under a range of pseudonyms including Fortuna Land, Euroland, Sol y Nieve, BPA Blueskies and ultimately Oanna Group. It sold a number of land developments including Bella Fortuna, Sierra Fortuna and Cazadores Reales. Investors were informed that the companies had submitted planning applications for a number of projects including hotels, a wedding chapel, a retirement home and a solar farm.

The Spanish press has reported that there could be more than 2,000 victims, mainly middle class investors from the United Kingdom and Ireland. The company's modus operandi was to promise victims high returns based on land reclassification on projects purported to be in operation in rural Andalucia. Many of Fortuna’s victims invested the minimum amount allowed, which was €10,000, but many others will have invested far more substantial sums than this.

Fortuna Estates first appeared on our radar in 2002 and has, since that time, been an ever present at multi-agency exhibitions across Ireland and the UK. The company also ran high profile marketing campaigns in the press. It denied strenuously that it was a 'boiler room' operation (a telesales office set up simply to promote a useless/fraudulent investment vehicle), an accusation that had been made against the company on the back of many similar scams relating to land banking operations in the UK.

Fortuna offered clients ‘shares’ in greenfield projects purporting to turn land in out-of-the-way parts of Andalucia into commercial property investments. It is not yet clear how many Irish investors are affected, but it will certainly run to many hundreds.

Mark Stucklin also reports: "The Fortuna Land scam was run out of offices on the Costa del Sol using companies registered in places like Cyprus and Delaware (USA). Currently the Fortuna Land website (fortunaland.es), claims they have “implemented a strategic relationship with The Oanna Group to realise your investment projects in Spain,” and instruct visitors to direct all future communications to oannagroup.com. The Oanna Group appears to have its main office in London.

In November clients visiting the Oanna Group website were informed that the company had moved its "international office from Spain to the UK" claiming "it previously provided outsourcing services to clients on mainland Spain through offices owned by Fortunaland SL." The notice went on to say that "with the downturn in markets it has not proved feasible to maintain separate offices" and was "focusing on centralising activities from the UK." It also claimed "that there are significantly better opportunities to access capital in London." It said that those who had been dealing with Fortunaland SL should direct their enquiries to "their management / representatives and/or company lawyers."

The address given was: Oanna Group UK Office, 3 More London Riverside, London SE1 2RE with a phone number of 0203 283 4090. The notice finished with the following statement: "With the onset of the credit crunch there are a number of lucrative opportunities in commercial and residential property worldwide. We are also developing some exclusive distressed property products and will provide our customers and clients access to these products. Please refer to the website www.oannagroup.com for further updates."

The Spanish police think that the main directors have already moved overseas. In a cruel final insult Fortuna Estates' investors are now being targeted by a new scam. This particular ruse involves a company contacting investors promising to attempt to recover money paid to Fortuna/Oanna for a fee of 10% of the original investment, paid in advance of course. The company involved in this particular operation is called European Mediation and has an address at Jaguar House, 6 Harthill Street, Manchester, M8 8AG.

When contacted by OverseasCafe.com questioning how it had managed to come by Fortuna Estates' client database European Mediation gave the following response:

"Our service is to mediate where there has been a dispute which has come to an impass (sic). Clearly we must maintain confidentially (sic) at all times, as required by the rules of data protection. But also by keeping matters out of the public domain we are able to be more effective. Due to the nature of our business we trust you understand the Companies (sic) response."

Indeed we, and others, do understand the company's response all too well.

You'll find a number of forums and articles discussing this issue, here are a few:

Spanish Property Insight

Ask About Money

The Singing Pig

House Price Crash

Fool.co.uk - scroll to the end of the article

Fool.co.uk - supplementary message board set up for Oanna victims as comment system on previous link reached capacity.

Investment Property Rumours - Excellent background on this scam

Rip Off Report

Lawbird Tribune

BeLegal thread on Oanna/Fortuna

BeLegal thread on European Mediation

El Pais - Article in Spanish

Sunday Times - Case study on Chris Redford, organiser of the UK Client's group.

Client groups exist in Ireland and the UK, you'll get full information if you email afle9876@iol.ie (Ireland) or chrisredford@aol.com (UK).

Register now to receive our informative newsletter, save searches and tailor your OverseasCafe.com experience to your own needs.

__________________________________

For a selection of property from around the world click here.

For a listing of agents selling overseas property click here.

For independent articles on overseas property click here.

For advice on purchasing property overseas click here.

For news on the world of overseas property click here.

For new releases and product updates from agents around the world click here.

For a list of upcoming overseas property exhibitions around the country click here.