Court probes property developer alleged to have swindled scores of ex-pat investors

Appearances were everything. The residential developments were large and situated in exceptional locations such as Costa del Sol, Dominican Republic and Morocco, and promotional events were luxurious affairs with high-profile sponsors such as Prince Albert of Monaco. Anything to attract clients - especially British ones - willing to advance large sums of money for property they were buying off the plan.

A Madrid court is now investigating claims that the developer Ricardo Miranda and the real estate company Ocean View Properties swindled 68 buyers who paid out millions of euros for homes that were never built. Forty-three of the plaintiffs paid a combined 4.2 million euros between 2005 and 2006 for apartments in Estepona which, they say, the developer did not even request a building license for. Nor, it is alleged, did he own the land on which the homes were supposed to be built.

"Many invested their life savings, thinking they would retire on the Costa del Sol"

The Marbella law firm representing the buyers, Lawbird, says that the total number of swindled customers could be nearer 120. "It all began through internet forums," explains Lawbird's Antonio Flores. Each one of the victims, mainly British and Irish citizens, sent them messages requesting legal advice, and they proposed building a class action suit.

"Many of them invested their life savings, thinking they would retire on the Costa del Sol; some took out bank loans that they are still paying back," Flores adds.

The average down payment ranged between 70,000 and 100,000 euros, although some put up a million euros for more than one property. The law firm has met with representatives of the government of Northern Ireland, which is considering becoming a further plaintiff in the case.

According to the lawsuit, the realtor Ocean View Properties was in charge of selling the developments, with clients signing a standard contract where the developer's signature did not appear. The claimants say Miranda's legal representatives now claim he never received the payments, or that he returned them.

This newspaper unsuccessfully attempted to reach Miranda and Ocean View Properties.

"It's clear that a pyramid scheme was used," says Flores. "Miranda played with several developments at the same time, and shuffled money between them."

The developments Miranda touted were Estepona Beach & Country Club, Punta Perla Marina (in Dominican Republic) and Tafedna Bay (in Morocco). The plaintiffs charge that the developer transferred the money he obtained from the Costa del Sol development to companies he owned in Dominican Republic.

The beginning of construction work for the Punta Perla complex received ample media coverage, and attendants included the president of Dominican Republic, Leonel Fernández, and Monaco's Prince Albert, who both had their picture taken with the builder. The entire development, which was to comprise 8,500 apartments, several golf courses and various luxury hotels, has been on hold for years.

Miranda is also facing swindling charges in that country, brought by a businessman, Andrés Liétor Martínez, who claims that the land on which Miranda aimed to build Punta Perla, worth an estimated

240 million euros, actually belongs to him because Miranda never paid for it.