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Once Ireland’s Richest Man, Sean Quinn Declares Bankruptcy

January 17th, 2012

Advance Loan BlogDebts Exceed $2.7 Billion
Sean Quinn, once rated Ireland’s richest person was declared bankrupt Monday as a bank pursues him for debts exceeding $2.7 billion. Quinn’s lawyers withdrew his opposition to a Republic of Ireland bankruptcy order sought by the former Anglo Irish Bank, the reckless lender at the center of Ireland’s calamitous property crash. The bankruptcy judgment will force a thorough court investigation of Quinn’s finances, which the bank hopes will reveal capital and assets that it can reclaim from Quinn, his wife and five children.
 
Rags-to-riches stories
Quinn boasts one of Ireland’s most celebrated rags-to-riches stories. He grew up on a border farm in Northern Ireland’s County Fermanagh, left school barely literate at 14 and started his first construction-gravel business with a $150 bank loan. Within three decades Quinn had transformed his quarry into a nationwide cement company. He built and bought luxury hotels, pubs, apartment complexes and commercial properties throughout Ireland, Britain, Eastern Europe and Asia; founded Ireland’s third-largest insurance company; and took interests in glassworks, packaging and radiators.
 
Net worth
Quinn had a reported 2007 net worth of $6 billion but sank much of his fortune into Anglo months before the bank suffered crippling losses as the country’s decade-long property bubble burst. The Quinn family secretly built up to a 28 percent stake in Anglo shares using an ill-regulated financial instrument that hid the scale of their investment from other stockholders. As Anglo’s share price plunged, Quinn says the bank encouraged his family to borrow hundreds of millions specifically to buy more Anglo stock, a charge the bank denies.
 
Northern Ireland
Last week Quinn lost a Belfast legal battle to retain bankruptcy protection in the neighboring British territory of Northern Ireland. The judge there ruled that Quinn had misled a previous Belfast court that his main base of business was in Northern Ireland, rather than the Republic of Ireland. "I have never done a day’s work from southern Ireland in my life," Quinn, who has lived for decades in the Republic of Ireland, insisted to reporters outside the Belfast court last week. Dublin-based IBRC would have faced greater difficulty pursuing Quinn for debts in Northern Ireland. Quinn also could have returned to business within a year under U.K. bankruptcy law, whereas the Irish prevent bankrupts from holding company directorships for up to 12 years. Quinn said the tougher Irish rules meant he would be too old, 76 in the year 2024, to direct any new companies then.
 
Shifting ownership
The bank accuses Quinn of fraudulently shifting ownership of his foreign properties, including office blocks and shopping malls, to relatives and shell companies that remain under the Quinns’ surreptitious control. The Quinns deny these charges. His five children have filed a Dublin lawsuit against IBRC seeking to have the bulk of the family’s Anglo borrowing voided on the grounds that the bank should never have lent them the money in the first place. They also are seeking to have IBRC return businesses to their ownership that were seized in April 2011.

 

Tags: Bankrupt, Ireland, Richest man, Sean Quinn
Posted in Bankruptcy, Business, Economy, Employment, Finance, Loans, Money, Personal / Internet | No Comments »

Identity Theft Lands Businessman in Court

January 16th, 2012

Advance Loan BlogAlleged victim loses everything
The trial starts Thursday of a down-on-his-luck businessman Norman Glass, who stole another man’s identity and made millions selling his victim’s assets to unsuspecting buyers.
 
Get-rich-quick scheme
About six months ago Glass cooked up a get-rich-quick scheme after hearing about an American living in the UK, who owned a building lot as well as an apartment on 14th Street. He began by assuming the identity of the property owner, a man named Kalev. Glass grew a beard and acquired a cane, a cap and the gait of a man 26 years his senior. He then created the documents that would enable Glass to present himself as Kalev. He began spending time outside the latter’s apartment building, where he collected Kalev’s mail and absorbed whatever information he could find. He used a computer to create a high-quality forgery of Kalev’s official identity card using Kalev’s personal information and his own photograph.
 
Sells Apartment
Next, according to Glass’s charge sheet, he placed an advertisement for Kalev’s apartment on an online classified-ads site, for $450,000. He also listed the lot with real estate agents and asked a prominent law firm to help him dispose of the property. At that point Glass also announced that he also had an apartment he wanted to sell. A man who is identified in Glass’s indictment only as D went for the bait. He was nearing retirement after working for the past 40 years at an engineering company where he was on the staff of a missile project. D and his wife met Glass at the upscale law office. There, in the presence of attorneys and real estate agents, a contract was signed. No one knew that Glass was not Kalev, the property’s real owner.
 
Payment
D agreed to give Glass 90 percent of the payment as soon as the property deed was assigned to him, and to pay the balance after the property development fees were paid.
The next day, Glass went alone to the Registry Office, carrying Kalev’s ID card and copies of the notarial seals used the previous day on the deed of sale: Glass had had them duplicated at a stationery store. No one at the registry office questioned his credentials, and he registered the lot to D and his wife. Afterward, as promised, D paid Glass from his retirement savings, in cash.
 
The police
A week or so later, as D waited for Glass to call and tell him the sale was completed, the near-retiree instead got a call from Superintendent Ross of the police fraud unit. Ross summoned D and his wife to unit headquarters where he told them: "We think you are victims of a sting. You purchased a lot from a con artist who impersonated Kalev," Ross explained. In addition, the real Kalev filed a police complaint over the theft of the property. D and his wife were overwhelmed. "I felt as if my world had crashed around me. After 40 years of work, that was all the money I had and suddenly they tell me I’m left with nothing. They asked me to point out the man in the picture and all at once many things became clear. I am simply lost," said D.
 
Error
Glass, the police say, made one fatal error in his perfect sting: Somehow, one of the documents he gave the lawyers contained his real name. Fraud squad detectives created a sting of their own, stringing him along and arranging for a meeting at the law office, where he was arrested. In a search of Glass’s home after his arrest, police officers found the cap, the cane and eyeglasses he wore to the contract-signing at the lawyers’ office.
Glass denied any connection to the affair and claimed that someone framed him. The police have not found the money that D paid Glass, who owns no property that could be seized in order to repay D.
 
Be alert! Don’t be a victim!

Tags: Apartment purchase, identity theft, Property deals, Sting
Posted in Assurance / Insurance, Business, Credit Cards, Economy, Employment, Finance, Identity Theft, Personal / Internet, Retirement | No Comments »

Hey, I paid for my ticket! I want my money back!

January 14th, 2012

Advance Loan BlogHow do you mean he turned left instead of right?
Hundreds of telephones must be ringing in deserted offices around the world and in Italy today. The phones in insurance companies are unmanned on Saturdays and calling on Sunday won’t do any good either. Can you imagine the chaos that has already started and will continue for the next days, months and even years as insurance companies pass the buck from one to another? Can you explain, how, in the year 2012, a luxury cruise liner, the Costa Concordia, owned by the Carnival Corporation and operated by Costa Cruises, built in 2004 at a cost of about $570 million can hit a sand bank off the coast of Italy and end up on its side in the water with a huge hole in its bottom?
 
No ordinary ship
How could this ship, a modern cruise liner and the largest ship to be built in Italy at 114,500 tons, 950 feet long and 118 feet wide and able to carry 3,700 passengers and a crew of 1,100, come to such an ugly end? She is lying on her side about half submerged in the water like some mammoth sea creature waiting for the kindly sheriff to end her misery by putting a bullet through her head. The ship had 1,500 staterooms; 505 had private balconies and 55 had direct access to the central spa. The Costa Concordia had one of the world’s largest wellness centers at sea, the Samsara Spa, a two-level, 20,000 foot wellness area, with gym, a thalassotherapy pool, sauna, Turkish bath and a solarium. The ship also had four swimming pools, two with retractable covers, five spas and a poolside screen on the Pool deck. There were five onboard restaurants, thirteen bars, a cigar and cognac bar and a coffee and chocolate bar. Entertainment options included a three-level theater, casino and a discotheque. There was a children’s area equipped with PlayStation products, Grand Prix motor racing simulator and an Internet cafe.
 
Here come the insurance claims
In the “Claim Age” in which we live, I imagine that every single passenger and crew member who was on board on Friday evening will be lodging a claim against the ship’s owners, the Master, the helmsman, the cruise operator and anyone who has the any connection to the cruise-shipping industry. Even though the ship didn’t sink like the Titanic, who whose 100 year disaster will be commemorated in April this year, just about everything will be recovered but will have been ruined by immersion in sea water. If it is not soaked for a few weeks, the fumes of the salt will do the job.  
 
Now what?
Naval engineers must all be hard at work working out a system of sealing the hull and hauling the giant back onto its bottom. Is there going to be fight over salvage rights, salvage fees and who gets what? Will the ship be fully repaired and made seaworthy again? Will you be booking a cruise on the Costa Concordia sometime in the future?

 

Posted in Assurance / Insurance, Business, Economy, Employment, Finance, Health Insurance, Travel | No Comments »

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