Five British citizens are in court in the United Kingdom shortly for having allegedly set up a pyramid selling fraud which resulted in 70 residents of Calvià on Mallorca being defrauded out of 12 million €.

They are alleged to have captured 150 investors in several countries, promising enormous profits on the stock market from a company called Gilher Inc.

The accused are charged with massive fraud, money laundering in Panama and the Seychelles, although they are all claiming innocence.

The Serious Fraud Office says the operation started in 2001 and has named the main accused as 60 year old John Hirst, from Brighouse, and Richard John Pollet from Poole, both of whom had luxury villas in Calvià with an active social life. They were members of Mallorca Cricket Club and the Rotary Club, and they offered interest of up to 18%. It was 1.5% return per month, making 18% per annum, and a 2% bonus was paid if invested for a year.

Police say that they managed to capture as many as 70 British residents of Mallorca, mostly retired people who often handed over their life savings and sums of between 11,000 and 223,000 €.
Similar numbers of victims were seen in France and the United States, who paid over some 12 million € in total under the promise of large profits.

Problems started at the end of 2009 when the first complaints about fraud were seen.

Hirst and Pollet have both denied the charges when they appeared at Bradford Crown Court in a plea and case-management hearing.
Hirst pleaded not guilty to money laundering linked to a 33,000 pound transfer from the Bank of Cyprus to Gilher Inc, and a 428,000 pound investment in Last Second Tickets Limited. His wife Linda, pleaded not guilty to various money laundering charges including one related to the purchase of a 552,000 pound house with her daughter Zoe in Send, Surrey in 2008.

All five defendants were granted bail until the pre-trial hearing which is expected on April 20, and Judge Durham Hall has confirmed the trial date has been set for June 18. It’s expected to last eight weeks.

John Hirst is accused of conspiracy to defraud ex-pat investors in a multi-million ‘Ponzi scheme’ made his first appearance before a crown court judge.

John Neil Hirst, of Millroyd Mill, Huddersfield Road, Brighouse, was charged last month with conspiracy and two offences of money-laundering.

It followed a 15-month investigation conducted by the Serious Fraud Office with the assistance of West Yorkshire Police and a number of overseas authorities.The 60-year-old is alleged to have targeted British nationals living on the Mediterranean island of Mallorca as well as investors in France and the USA.

It is understood that more than £10m pounds was obtained from investors. The losses are believed to be around £6m. The SFO investigation began in November 2009 following complaints from investors and involved Hirst’s Panama and Seychelles-registered company Gilher Inc. Hirst, who returned to the United Kingdom in 2009 suffering from ill-health, yesterday appeared before Bradford Crown Court for a preliminary hearing before Judge Peter Benson.

During the 20-minute hearing a timetable for the case was discussed between the judge and counsel. Hirst’s next hearing was fixed for September 9. Any trial could last between eight and 10 weeks. It was given a provisional listing for June 18, 2012.

Judge Peter Benson renewed Hirst’s existing bail conditions, which ban him from having any contact with investors.

 

 

 

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A piece of the overhead lines has been stolen and all trains halted as a result
Alicante train station was a scene of chaos on Sunday as a problem with the overhead lines stopped both the arrival and departure of trains. Over 500 passengers have been affected by the breakdown which reports indicate has been caused by the theft of a piece of the overhead line structure at San Vicente. One report says the counterweights which keep the overhead cables at the correct tension have been taken.

Railway infrastructure company, ADIF, managed to restore the service restored at 8pm, after a twelve hour break.

Meanwhile staying at Alicante station, the City Hall and ADIF have agreed to save one of the two old railway sheds which under the threat of demolition to make way for the arrival of the AVE high speed train. The building closest to the station is considered to have the highest architectural value and will be saved, thanks to space from the demolition of the Aurgi workshops instead.

There was more travel chaos on the railways on Sunday afternoon when a cloudburst over the province of Toledo has halted all AVE high speed trains between Madrid and Sevilla and Málaga, as parts of the line were surrounded by standing water at Yeles, Toledo. Part of the ballast which holds the tracks in place has shifted with the water.

More than 6,000 travellers have been affected. RENFE Spanish railways have been using coaches to move the stranded passengers.

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