Milanes investor group agrees dilemma is real

Thank you for your article in Friday’s A.M. Costa Rica regarding the possible discrepancy of property evaluation assessment (estimated) and the actual selling value of real estate. This is particularly true when related to the Louis Milanes/Savings Unlimited case and the dilemma facing the investors who have filed claims.

How much money can be realized from the sales of the properties offered and how much time will it take? Sounds like a plea by Milanes and his lawyers to postpone the actual closure of this case. Pay up or go to trial. He is asking the investors to accept a settlement based on assumptions (assessed value) and not actuality (Who will pay that price?) We all know that property is only worth what someone will pay for it. The preliminary hearing in March will be most interesting and perhaps set a precedent for acceptable collateral in future fraud cases.

Another case to consider is the Villalobos Brothers court awards. The settlement reached was 38.47% of the invested amounts/court awards. The first payment of 27.59 percent was received in early March of 2010. The investors are still waiting for the second installment of 10.88 percent.

I understand that the delay is attributed to the sale of properties confiscated by the courts which were to be sold and the moneys distributed to the investors. Is the second payment 10.88 percent based on the court’s assessed appraisal value or the actual selling value? Have the properties been sold? If so, when is the second payment to be distributed?

If properties are accepted as part of a package cash deal then they should be sold first and the resulting sales money added to the pot. Otherwise it is just speculation and it is anybody’s guess as to the real value of the properties, and probably more important will take years to complete the “deal.”

It is a real dilemma for the investors: Take what is proffered and be thankful or to call his bluff and hope that justice will be served. What to do?

Jim Irwin
Group of 15 Canadian investors.

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