Fraud claims force property investor company into administration

The UK arm of a top property investment company – backed by Gary Player and Pat Cash - has filed for administration after what it has described as “unfounded negative publicity” arising as a result of multiple fraud allegations.

Harlequin Management Services (South-East), an arm of the multi-million pound Caribbean investment firm, filed the claim after a series of public accusations of fraudulent practice had damaging effects on day-to-day sales.

The company, which is endorsed by a host of major sporting celebrities, has taken more than £300 million in deposits from at least 6,000 investors for off-plan luxury holiday accommodation, consisting of thousands of properties, across the Caribbean since 2006.

The Serious Fraud Office (SFO), Financial Services Authority (FSA) and the Essex Police began investigations into Harlequin, however, when in 2011 only 300 of the properties had actually been built.

The Caribbean registered company, endorsed by golf legend Gary Player, former Wimbledon champion Pat Cash and football pundit Andy Townsend, claims that allegations made in the public domain directly brought about its impending administration, as sales figures were challenged by the accusations.

A spokesman for the Essex-based firm said: “Due to unfounded negative publicity in the public domain that has been instigated since 2011, the day-to-day UK sales business of Harlequin Property has become increasingly challenging, to the point that it is now almost impossible.”

The proceedings were lodged at the High Court in London yesterday, with the intention of appointing London-based accountants Shipleys LLP as administrators.

Court action has, however, prompted widespread fears among the firm’s creditors over the future of their deposits, many of which have been taken from personal pensions.

Carole Ames, Director at Harlequin, said: “The company is or is likely to become unable to pay its debts”.

The firm’s directors added that Harlequin had been placed into administration in order to give the entire company “some breathing space and the ability to deal with its challenges”.