Multiple individuals who purchased properties in the El Mojón area, located in the municipality of Arona in Tenerife, revealed on Monday that they were not made aware that the development did not possess a license. This was due to the absence of a partial plan and the fact that the general plan had not been approved.
This lack of information came to light during the initial session of a trial at the Provincial Court of Santa Cruz de Tenerife concerning an alleged case of fraudulent activities and misappropriation.
In the inaugural session of the trial, numerous individuals, mostly Italian, testified feeling deceived as they claimed they were never informed about the lack of licensing for the development, owing to the absence of both a partial plan and an approved general plan.
The real estate developer and their representative, who are facing accusations of fraud and misappropriation, have been asked by the Prosecutor’s Office to serve six years in prison each and repay €1.2 million to the thirty individuals who fell victim to their actions.
Many of these individuals, who were looking to resell the properties for a profit margin of about 3%, identified the two accused as the individuals with whom they conducted negotiations.
They state that they were presented with folders containing plans and sales conditions and were assured that the partial plan would soon receive approval, along with the issuance of the building license, which, in reality, occurred two decades later.
To persuade clients, they were taken to the site, where a shovel was placed to create the illusion of excavation work in progress, and were shown plans for a development that the same company was executing in La Orotava.
The properties were priced at approximately €450,000, with an initial payment typically around €29,000, which was made via bank transfer, cheque, or cash. Immediately after, a contract signed by the developer, who is now a defendant, was provided to them.
One of the supposed victims only became aware of the scheme when rumors of irregularities began circulating, and the representative failed to respond to their calls.
They admitted to persuading an Italian citizen to participate in the project but could not recall the exact amount of money involved.
“We were informed that the building permit was imminent and that everything was already arranged and approved,” although, in reality, without the approval of the general plan, no partial plan could progress either.
Another justification provided was the political instability in Arona due to the continuous changes in local government and the frequent cancellations of the General Planning Plan.
Scam Alert: Witnesses Expose House Selling Fraud in Tenerife
A different observer confirmed the identity of the two defendants, stating they were the individuals who facilitated the sale of properties. One took on the role of “supervisor,” while the other operated from a booth in Adeje, located in the south of Tenerife, handling transactions on behalf of the former.
Deceptive Promotions Unveiled: Witness Shares Experience
“The promotion seemed appealing in the vicinity, and I had a longstanding, trustworthy relationship with the company,” disclosed a witness. Advances were allegedly made to them via checks or transfers, yet they never received any payments.
Unravelling the Scam: Victim Discovers the Truth
After being presented with a preliminary project and promotional study, a victim inadvertently discovered the deception when a client informed them. Upon inquiry at the La Orotava office, situated in the north of Tenerife, they were told that there were no projects in the south.
Realization Dawns: Victim Drops Out of the Scam
“Upon realizing the fraudulent nature of the operation, I decided to walk away, understanding that there was no legitimate business. My legal advisor cautioned me against pursuing the matter further,” the victim acknowledged.
Discrepancies Exposed: False Claims About Permits and Licenses
When questioned about permits and licenses, the victims were informed that publications were slated for 2006 or 2007, perpetuating false hopes. Contradictorily, they were also assured of publications in the Official State Gazette (BOE), adding to the deceit.
Potential Development in El Mojón Area
The El Mojón partial plan covers an expansive area of 908,306 square meters, with processing extensions spanning 40 years. Situated adjacent to the popular tourist spots of Los Cristianos and Las Américas, the land offers opportunities for over 70 private plots for varied purposes like tourism, residential, commercial, and sports activities. Licensing procedures are now poised to begin in the area.
