Spanish property - Trampolin Hills goes in to administration

The developer for the Trampolin Hills Golf Resort in the Spanish province of Murcia has been forced into bankruptcy proceedings unable to pays its debts, according to reports in the local press. Administrators have been appointed to run the company.

In another twist, the main two representatives of the financial institution that managed the finances of the Campos del Rio urbanisation are now behind bars. Both Jose Manuel Mosquera and Jose Antonio Alarcón were key figures in Swiss Financial Corporation SL.

Mosquera and Alarcón were arrested last December in Madrid by Murcia's Guardia Civil. They were ordered to prison by the judge at Mula law courts, who is responsible for the case. The business didn't have official authorisation to operate. It was formed in Panama and has changed headquarters on numerous occasions, presumably to make it harder to locate them.

Trampolin Hills contracted the services of this business to offer the bank guarantees for the money paid by the buyers on Campos del Rio. The plan was to build 2,500 houses and a golf course. Antonio Martínez and Rafael Aguilera, the urbanisation managers, already face charges for fraud. It is believed the first houses were sold in March 2005, before the building permits were even granted. The land was still classified as rural at this time.

Despite all this Trampolin Hills was widely advertised through the internet and by estate agents in Spain, UK and Ireland. Almost 1,500 people paid deposits for their 'dream homes', some paying up to €120,000 euros. Altogether €50 million euros were paid. However, five years later, the homes have not been built, and a judge has placed a €30 million euro fine on those responsible for this chaos.

The money was originally deposited in an account in La Caixa Bank, then later Swiss Financial were contracted to take care of the finances. The €50 million euros has not yet been located, which is why this fictitious Swiss company must now face the music.

For more information on how you can reclaim your deposit or execute a bank guarantee, visit www.spanishpropertyactiongroup.com