Developers face prison in Spain

LAST UPDATED: 7 Jan, 2015 @ 18:07
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Developers face prison in Spain

By Gemma Wilson

THE net is tightening on two infamous property developers.

Both Jesus Gotardo, of Palmera Properties, and Enrique Faura, of Mirador, are finally facing prison over claims they defrauded hundreds of property buyers, many of them expats, around Andalucia.

Mirador boss Enrique Faura this week denied in court in Malaga that he had deliberately kept €400,000 in deposits for 12 homes that had not been built in Velez Malaga.

A number of British nationals have been caught up in the scandal in which the Mirador group is accused of keeping an average of €34,000 per buyer for the homes in the Mirador de la Forteleza development.

Faura and his brother Leopoldo are facing seven and eight years in prison for failing to offer the buyers guarantees, nor even acquire planning permission.

The money was used to pay fines for the company, which is registered in Panama.

Furthermore, they did not pay the 12 owners back when the land was sold in 2008.

The brothers are also to be tried over developments in Fuente de Piedra, Benalmadena and Villanueva del Rosario, most of which were marketed through slick Fuengirola-based company Palmera Properties.

The Olive Press reported on the case as far back as 2008 and has spoken to numerous victims.

The Faura brothers insisted they had paid back 70 different owners and that they had been caught out by Velez Malaga Town Hall that took a long time to give planning permission.

The case continues.

18 COMMENTS

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  1. The Mayor of Malaga new this was going on, the planing office new, and allow it to go on. So if they think its ok for these crooks to walk off with millions of pounds of peoples money then the local and central Spanish government can foot the bill and pay back money that they should have been protected in the first place. Absolute bloody disgrace!

  2. This is probably true wht about the people like us who went through the courts were awarded our money back through the estate agent palmera properties and then told he has no money ???? In court the grupo mirador boss said yes they received money on the day but didnt know whose it was so they arent responsible to pay it back?? Maybe prison might help their memory of who they owe money to

  3. Hi Beris,

    i think it’s about time the spanish courts grew some balls and begin the process of freezing these crooks assets, and using the funds to repay the creditors, that have a legal claim to their money back! why haven’t they had all there assets frozen? i cannot believe this has not been done already.This is something i will be challenging through a reputable solicitor. Don’t let this situation just dissipate without any recourse. These crooks, who we don’t need reminding are “GUILTY” have amassed huge funds in the form of properties and personal items of value for themselves, which need seizing. It’s our money that paid for all of it.

  4. Hi Colin , it is almost impossible to obtain a freezing order in Spain firstly because you need to prove fraud in the criminal courts and then an asset seizing order for compensation.It is not like the u.k where you can obtain a freezing order without even informing the other party leaving them to fight to lift it by paying you off.
    Remember it is normal in Spain to keep your business just above bankrupt to avoid tax , the only way to access the personal assets of an individual is through the criminal courts and for that you need a very good lawyer, to make your case in time and deep pockets .Dont shoot the messenger!!!

  5. Hi lou, hope your well. Looking at the story above, the crime they are being found guilty of, is fraud. That must be a good stand point to throw back at the judge in trying to get justice for the victims. Living in big houses and having Panamanian bank acc’s is little sign of near bankruptcy. I don’t believe the judges can imagine that they won’t be contacted by victims after a guilty verdict. Thanks for the insight into the third world spanish system.

  6. good evening Colin, I have always thought that the biggest problem in Spain is the non understanding of the legal system.
    Criminal claims are not there to recover funds they are there to punish offenders however they sometimes result in a refund of money as if the potential guilty party wishes to avoid a custodial sentence they can pay you off and then the sentence is reduced usually to a suspended one .
    A civil case (similar to the u.k county court )is used to recover funds however this can be rendered a useless act if the legal representative acting for you is unable to place a preventative embargo on an asset which can be sold to recover your losses . I hope this helps

  7. Hi lou,

    Thanks for the additional info. i will be discussing all my options with my legal rep, the whole situation has dragged on for over 8 yrs. with an end game in sight, this is proberly the best time to launch another attack at retrieving my money.
    thanks again lou, take care.

  8. I have been reading the comments between Colin and Lou and totally agree with Colin. We have been owed money by these two idiots since 2005, went to Court in 2009 – our Solicitor told us she had won the case but where is our money. These guys have the money and as we are now in our 70’s and have worked very hard for it I NOW WANT IT BACK. They are not going to learn any lessons in jail – they will come out and continue to defraud. They’ve hidden the money somewhere maybe with their families, and in property so come on you whimpy judges, force the issue to get our money back. We want to enjoy what little remains of our life. It is our money and i will continue to dig and delve to get it back. We have no money for any further legal action so get your butts in gear someone!

  9. Only in Spain could someone be forced to spend thousands of euros to get the return of money owed to them, win the case but still don’t get back their money.

    I often see Spanish Abogados boasting they have won a case against a Developer but they don’t state they want more money upfront to actually try to locate the money. Hollow victories.

  10. Hi Guys
    Been reading your comments. I was born in UK and settled in New Zealand for 26yrs but now live in Thailand the last 7 yrs and been with my Thai wife for 7 yrs. We are going to move to Spain later this year and open few fashion shops importing from Thailand but will not buy property’s only lease them also with living ACCOMODATION to lease/rent as I have read many peoples problems regarding buying property . I lived in Mallorca for 4yrs back before Spain went into the EC they were the best times in Spain. We will initially start in Javae.
    So will be joining you all.

    As far as Thailand goes you realy have to watch what you do or buy here it can be a real nightmare.

    Cheers Guys

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