Property firm Flash Developments faces court probe

This is an article from The Sunday Business Post relating to a court probe into Flash Developments and possible use of investors’ deposits to run the firm.

Sunday, June 27, 2010 - By Ian Kehoe

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 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.

Flash has taken deposits from more than 200 prospective buyers, but has not signed any contracts in relation to a proposed development.

The company went into liquidation earlier this month, but Maguire insisted that all deposits were safe and the development would go ahead through another company called the Ciaran Maguire Group.

However, 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.

‘‘From our initial investigations, it does not appear that the company has title to land, nor have any contracts been signed by the company,” the liquidator added.

During a High Court hearing last week, Ms Justice Finlay Geoghegan drew attention to the two claims and said they should be investigated by Wallace.

The judge adjourned the matter for four weeks, to give the directors of Flash time to file a detailed statement of its assets and liabilities.

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

Maguire has insisted the project will go ahead through the new company.

He said last month that the first phase of the development was valued at €100 million and would include a five-star hotel.

Maguire said he had a 15-year licence with the Cape Verde government to build on the island, and that he would ultimately build developments valued at €1.8 billion.

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Flash Developments / Ciaran Maguire Group article in The Phoenix

The Phoenix Young Blood article on Ciaran Maguire of Flash Developments who is behind the Palm View Resort in Cape Verde where Dublin legal firm Anthony Joyce & Co are representing overseas investors.

The Phoenix have very kindly given us permission to add this interesting piece of coverage relating to the on going saga of Flash Developments. Please click on the image below to view the full article.

Flash in the pan or Flash aaaaah

Any investors who would like further details of Anthony Joyce’s legal work on this case or overseas property legal issues in general then please contact us.

Flash Developments Limited to be wound up.

Dublin legal firm Anthony Joyce & Co have just confirmed that Flash Developments Ltd, headed by Ciaran Maguire, the developers of the €1.8bn Palm View resort in Cape Verde, is to be wound up follow a High Court petition by Hayes Recruitment.

The petition was submitted to the Court in Dublin last week (17th May, 2010) and was approved by Justice Laffoy. This puts Flash Developments into liquidation and KPMG have been confirmed as the liquidators.

Anthony Joyce (tel: 01 4545000) is currently undertaking legal action relating to Flash Development on behalf of investors. Please contact us for further details.

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Cape crusader “Work on €1.8bn resort to go ahead”

In The Sunday Business Post today my client the Dublin law firm Anthony Joyce & Co received an very quick response from Flash Developments, to their appointment to represent investors who bought units in their Cape Verde development, the Palm View Resort. They are currently in the process of confirming the details on the proposals and will report back as soon as possible. Below is  a link to article and a full transcript of the details.

http://www.sbpost.ie/news/ireland/work-on-18bn-resort-to-go-ahead-48691.html

The Sunday Business Post:

Work on €1.8bn resort to go ahead

18 April 2010 By Ian Kehoe

The developer of a €1.8 billion resort in Cape Verde has insisted that building work has started on the project, despite moves from some investors to recover money they put into the project.

Flash Developments, which is headed by Ciaran Maguire, has received deposits from more than 200 Irish and British investors for apartments and villas in the planned Palm View resort.

Following a 16-month delay in the project getting full planning permission, a number of the investors are putting together an action group to recover their money, Anthony Joyce, a Dublin solicitor, has been retained by the investors to look into the finances of Flash Developments and the Palm View project.

Joyce previously represented an action group that recovered funds from property firm Kuvera Ireland.

Maguire said he had arranged to meet Joyce on Thursday to explain the situation, and would present the solicitor with all relevant paperwork and financial information. He said he understood that a number of purchasers were ‘‘peeved’’ by the delays, but said the firm had started full construction work on the development in the past two weeks.

He said phase one of the development was valued at €100 million 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.

Maguire said that 60 per cent of the first phase was sold out, but said there had been ‘‘slippage’’, with 11 per cent of purchasers pulling out due to delays. He said that he was in the process of repaying all their deposits, and hoped to complete the process shortly.

He said that the money had been invested through bonds which were guaranteed by a British company called Exchange Insurance. However, he said this company had gone into administration, and he was forced to repay all the money personally.

‘‘I have €10million in worthless bank bonds, but I will honour all the deposits personally,” he said. Maguire said he had funding with a British bank to finance the development.

Palm View Resort, Cape Verde: Calling all who invested through Flash Developments

In the past year I have been undertaking the public relations to raise the awareness of a number of high profile litigation cases in relation to the overseas property industry and instances where investors have launched legal actions to recover their funds. The Kuvera and Dubai action groups are two of the most well known cases.

Today I was asked to help on another high profile case, which relates to Flash Developments and their Palm View Resort in Cape Verde. A group of Irish and British investors is forming an action group in order to undertake legal action to recover funds paid to Flash Developments. In cases such as this there are huge benefits to forming a group rather than undertaking individual cases; a group action is much stronger, as there is strength in numbers, and it is much cheaper to undertake because the costs are divided by all the members.

More details will follow shortly.

If you would like to join the Palm View Resort Action Group they are being represented by Dublin solicitor Anthony Joyce, of Anthony Joyce & Co (tel: +353 (0) 14545000), who has successfully recovered funds for investors previously with similar actions. Please contact us for further details.

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