'£10,000 for worthless World Cup property plots': UK victims turn to lawyers
06-30-2014
British investors who spent up to £19m on 'worthless' Brazilian land have engaged solicitors in an attempt to reclaim their cash
A 'land banking' firm sold plots in areas supposedly close to World Cup stadiums and likely to benefit from Brazil's more widely rising land prices. But the land turned out to be almost worthless Photo: Alamy
By Richard Dyson
Investors who put millions of pounds into Brazilian property investments – hoping to profit from the "World Cup effect" – are now pinning their hopes on a legal action to reclaim some of their money.
The firm at the centre of the property investment scheme, Pantheon Realty Consultants, had a prestigious address in London and UK directors whose details were held at Companies House.
During early 2013 the firm sold plots in areas supposedly close to World Cup stadiums and likely to benefit from Brazil's more widely rising land prices. The plots were to be developed as hotels and resorts, the salesmen promised, and should return 20pc per year.
But the land that was sold to investors for an average £10,000 per plot has turned out to be almost worthless and unlikely ever to be developed.
A liquidator was appointed by the Insolvency Service in August 2013, and the company wound up in the public interest. At the time an Insolvency Service spokesman said: “These companies tried to link international sporting events with a bogus opportunity to lure investors to put money into their scam. When pressed, they could not support the claims."
Now some investors have turned to London law firm Carter Lemon Camerons in the hope that a portion of the money might be reclaimed from the firms and individuals involved.
The BBC's Today Programme reported that more investors were involved than previously thought, with as many as 600 having subscribed as much as £19m.
It reported on a number of cases including an investor in her 80s who had lost £70,000 and one in his 20s who had lost £26,000.
Another investor interviewed on the programme described how salesmen had been "very aggressive". He never received title documents for the land.
The BBC said the directors named at Companies House were fronts, paid to have their names included on the register while not being directly involved in the business.
Chris Corney, the solicitor representing investors, said there was a possibility of recovering money if the assets could be traced and frozen soon enough.
He told The Telegraph that his firm was "advising a group of investors of the Pantheon Realty operation that was closed down by the authorities. We are at an early stage, and we would not want to tip off potential defendants about all the options open to victims of the scheme."
He listed the firms involved as Pantheon Realty Consultants Limited, Pantheon Realty Consultancy Limited, Pantheon Realty Limited, Pantheon Limited and PR Group Limited.
So-called "land banking" schemes, which sell plots of undeveloped land in both Britain and more exotic locations, have been involved.
The Financial Conduct Authority warned: "The number of land banking schemes being reported to us has been rising. We estimate land banking schemes have cost UK investors as much as £200m."