Court Mandates €30 Million in Compensation for Timeshare Fraud Victims

A landmark court ruling has established a significant financial restitution plan for victims of a notorious timeshare fraud scheme that operated in Tenerife, bringing a glimmer of hope to those affected by the deceitful practices.

Sentencing of Key Figures in the Fraud Scheme

Mark Rowe, the mastermind behind Sell My Timeshare, along with twelve accomplices, has been sentenced to seven and a half years in prison by British authorities. This sentence, which began in August of last year, comes as part of a broader effort to address the rampant fraud that has plagued the timeshare industry. In addition to their prison sentences, the court has mandated that Rowe and his associates pay €30 million in compensation to the victims of their fraudulent activities, a decision that has been met with relief by many.

Eva Gutiérrez, a dedicated lawyer representing nearly one thousand victims, expressed her optimism regarding the ruling. She believes that this decision will serve as a crucial step toward financial recovery for those who have suffered significant losses due to the fraudulent practices employed by Rowe and his team.

Origins of the Investigation into Timeshare Fraud

The investigation that ultimately led to this significant court ruling was sparked by a hidden camera report aired by the BBC nearly a decade ago. In this exposé, journalists posed as potential buyers of timeshare properties in Tenerife, uncovering a series of deceptive practices that incited widespread public outrage and concern.

This investigative report prompted law enforcement to launch a thorough investigation, which culminated in the conviction of 14 individuals who collectively defrauded approximately €30 million from around 3,500 property owners in southern Tenerife. Alarmingly, many of the victims were elderly, with ages ranging from 60 to 80, and some individuals reported losses as high as €12,000. The emotional and financial toll on these victims has been profound, highlighting the need for justice and restitution.

Legal Challenges and Ongoing Recovery Efforts

In 2019, Gutiérrez, who is affiliated with the Canarian Legal Alliance (CLA), took a significant step by filing a criminal complaint against the perpetrators. However, this complaint was initially archived, reflecting the challenges faced in holding accountable the owners of companies like Silverpoint, which had previously faced adverse civil court rulings totaling €12 million.

At the time of her filing, Gutiérrez was unaware of the television program or the specific names of the companies involved, a common issue in a landscape where numerous commercial entities operate under various aliases. She noted that many of these companies have effectively ceased operations, leaving their leaders untraceable. Alarmingly, around 70 companies are registered in tax havens, complicating efforts to pursue justice for the victims.

Gutiérrez recalled that the National Police’s Udyco unit, which specializes in organized crime, had previously investigated this extensive network, compiling a comprehensive record that spans 19 volumes. The General Treasury of the Social Security (TGSS) also played a role in this investigation, contributing valuable insights and data.

In July 2020, the prosecution took further action by filing a complaint regarding supposed frustration of enforcement, previously referred to as asset stripping, alongside charges of criminal insolvency and procedural fraud. However, this complaint was provisionally archived, illustrating the ongoing legal hurdles faced by those seeking justice in this complex case.

Key points

• Mark Rowe and collaborators sentenced to seven and a half years in prison.
• Court ordered €30 million compensation for timeshare fraud victims.
• Investigation initiated by a BBC hidden camera report nine years ago.
• Approximately 3,500 victims defrauded, many of whom are elderly.
• Legal efforts faced challenges, including archived complaints.
• Numerous companies involved are registered in tax havens.
• National Police conducted an extensive investigation into the fraud network.