Investors who ploughed more than $1 million into a Costa Rica property scheme launched by David and Antoinette Bolden will get back about two to four cents on the dollar, according to the receivers.
That’s more than they would get if EFG International Realty LP1, the limited partnership vehicle set up for the scheme, had unsecured creditors claims.
KPMG Advisory Limited, acting as agent for the Official Receiver, issued a call for unsecured creditors of the EFGIR estate in October, but received no responses by its November deadline.
“Following advertising for unsecured creditor claims in October, there were no such creditor claims submitted,” said Charles Thresh of KPMG Advisory Limited.
“Accordingly, after costs, the residual estate is available in full for distribution to the EFGIR investors. The next stage in the process is a formal call for claims by investors. This will be advertised shortly and, after expiry of a short notice period, a distribution will be made.
“Unfortunately, due to the limited assets available to the estate, the distribution is expected to be only two to four cents on the dollar to investors, depending on how many investors come forward and prove their claim.”
The scheme had about 35 investors.
Mr Bolden was president of the company and its affairs were organized by its general partner Emerald International Management Limited (EIML), a regulated financial firm owned by the couple.
The Emerald Group of Companies, including EIML, is being wound up by KPMG after the BMA took enforcement action in summer 2009 due to concerns about the firm’s liquidity.
KPMG’s latest report to identified EFGIR investors says that the company’s general ledger contained no financial data and a dedicated bank account for the scheme was not opened.
But KPMG determined that the total amount of money invested into the scheme by the 35 Limited Partners could be $1,417,442, of which $1,009,932 has been confirmed.
Subscriptions ranged from $25,000 to $150,000.
The Boldens were found guilty of misleading the BMA in relation to their Emerald Financial Group of Companies, by a Supreme Court jury in June last year. The couple could not be contacted for comment by press time.