Reclaim Limited

Reclaim Limited

Reclaim customers are promised some form of ‘cashback’ or repayment of part of their investment at the time that they purchase a timeshare. The claim process requires customers to make their claim 51 months after their investment and the form must be posted, or more accurately, postmarked, within a narrow window of ten days. It appears that most customers either forget to post it 51 months later or miss the window for posting. A small number apply successfully but many complain that they do not receive their cheques.

Customers of Reclaim do not appear to be defrauded per se, in the sense that what they are missing out on is a potential ‘cashback’ on monies paid, upon certain conditions being met within narrow parameters, and not a promised guaranteed return on an investment as such. Nevertheless the scheme generates many complaints from dissatisfied customers who feel that they have been misled or defrauded.

In December 2012 the Minister for Financial Services instructed the law firm of Hassans to file for the winding-up of Reclaim Limited on “public interest” grounds. The order was contested by Reclaim Limited. Malcolm Willis a director of Reclaim and Luis Fernandez of Law Abogados Patrimonial SL (“LAP”) filed affidavits claiming that Reclaim had now ceased trading and that the funds are no longer held by Reclaim but by LAP as the “Spanish trustees” of Reclaim. They claimed that as a result of the freezing order on the funds by the Gibraltar Courts they had been unable to pay the Reclaim certificates resulting in a multitude of complaints and for this reason Reclaim should not be placed into liquidation and the freezing order should be lifted.

After a two day trial the arguments put forward by Reclaim were rejected by the Gibraltar Courts which found that Reclaim should be wound up. Reclaim was eventually wound up on 31 March 2014 and Edgar Lavarello (PwC) and Charles Bottaro (formerly of PwC) were appointed Joint Liquidators.

Initially the directors appealed against the Supreme Court’s decision but this appeal has now been withdrawn. The Supreme Court Judge, in finding that the company ought to be put into liquidation, stopped short from declaring that the scheme was fraudulent but he did say that the way it was being operated in practice was tantamount to dishonest manipulation.

The directors of Reclaim are Malcolm Willis and three corporate directors registered in the BVI. The statement of affairs provided by Malcolm Willis shows that the company has no assets and no liabilities and he explains that all of the funds have been transferred to LAP and accordingly Reclaim had ceased trading several months prior to it being placed into liquidation.

Luis Fernandez and LAP have some problem in understanding the Order of 31 March 2014 appointing the Joint Liquidators of Reclaim Limited and what this in fact means and, at present, refuse to accept the terms / consequences of our appointment as Liquidators. Hassans (representing the Liquidators) are in correspondence with LAP who have acknowledged that they hold certain funds but assert that such funds are held for the benefit of the successfully redeeming scheme participants, not Reclaim, but LAP, as noted, refuses to accept the authority of the Gibraltar Courts’ appointment of PwC as Liquidators and / or the implications of the same in LAP’s subsequent obligation to transfer all monies to the care of the Liquidators.

In the meantime we have written to Societe General, Tangiers (SG) where we believe the monies are retained. Preliminary investigations seemed to indicate that the assets held by SG could be in the region of €1.5million to €7.5million but that it is uncertain whether such funds are held in the name of Reclaim or in the name of LAP (or some other company related to LAP).

Since Reclaim has been placed into liquidation we have received a number of complaints from creditors informing us that they are being contacted by a number of other parties, including Victoria Marketing and Bordella Liquidators, claiming to be the liquidators of Reclaim Limited or acting on behalf of the liquidators of Reclaim limited.

These companies all have the very similar methods of operation. Initially they may invite you to a meeting or try to gain your trust by providing you with information and stating that they are here to help you and that you do not need to pay them any money. Once they think that they have earned your trust they will throw in a complication, like an administrative charge or a tax which has to be paid before your funds are released.

None of these companies act for or represent the Liquidators of Reclaim and you should accordingly refrain from dealing with them in any such capacity. If you have any concerns please contact us at the address provided as these companies have no intention of legitimately returning your monies so please do not pay them as they cannot help you in respect to any matters relating to Reclaim.

In recent weeks we have received many emails asking us when we are going to return your monies. This process may take some time and depends entirely on our ability, as Liquidators, to successfully gain access to, and control over, Reclaim’s monies / assets either directly through SG or through the instigation of Court action against Luis Fernandez and LAP to compel them to deliver Reclaim’s monies / assets to us as Liquidators. This process will likely take many months if, indeed, we are at all successful.

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