North Cyprus Property Victims | The Family Way


North Cyprus Property Victims – The Family Way

I know this will come as a shock to a lot of you but the property market on the island of Cyprus is a mess.

Not because all developers/landowners/builders are dishonest. Far from it, but the silence of the honest ones is deafening, yet you would think they would be up in arms against the Governments who allow the few to cause such mayhem.

The same applies to the banks, those who have done nothing wrong should be lambasting the ones who have, so why aren’t they?

Similarly this applies to the legal profession.

Cyprus is a small island and it is hard to find anyone who is not related even tenuously and I believe this is the problem.  The good of the country appears to come second to the family ‘honour’. Where is the honour in condoning the behaviour of the corrupt?

The foreigner is not alone in being affected by this attitude of ‘we cannot be seen to be wrong’, yet many are, many Cypriots have been conned too.

In the unlikely event you win a case in the court system, receiving any award is an uphill struggle and will probably result in the need for further legal action. You may get on the treadmill, you may not get off. Welcome to the Hotel California.

The lip service given to victims of property scams is an exercise in delaying and out waiting the victim until they either give up, go away or die.

I have been fighting the injustice for 6 years, a very short time it seems when I talk to others who have been fighting for ten years plus. I doubt many have endured the sick, obvious intimidation I have. We all have different ‘stress’ thresholds and who can blame anyone for giving up under such pressure.

Recent news in the ROC

Our View: CySEC delayed fines an admission of failure

HOW PECULIAR that the Cyprus Securities and Exchange Commission (CySEC) decided to slap big fines on directors and executives of Laiki Bank and Bank of Cyprus over the publishing of misleading information with regard to their heavy investment in Greek government bonds in 2009 and 2010. The write-down of the Greek debt took place in October 2011, Laiki Bank had to be bailed out by the state in May 2012 and a month later BoC announced that it would require state assistance to meet the new capital requirements imposed by the European Central Bank.

There was obviously something wrong, so why did it take CySEC another two years to fine the banks, their directors and executives? What had the Commission been doing in 2013? The violation of reporting requirements to the stock exchange, the publishing of misleading and incomplete prospectuses and the misreporting of assets in 2010 and 2011 – among the reasons given for the fines imposed – were evident last year, so why had it taken CySEC so long to investigate the matter and impose the fines?

The chairman of the House ethics committee, Demetris Syllouris, felt the Commission was spurred into action because of his committee’s investigation into the banking collapse. It apparently found the courage to punish the bankers because of the example set by Syllouris’ committee. Others, including Andreas Vgenopoulos, have claimed, not very convincingly, that CySEC was doing a favour to AKEL, reinforcing the party’s view that the economy’s problems were caused by the banking sector and not the Christofias government.

A more plausible explanation was that CySEC was pandering to public opinion, punishing the bankers for mismanagement, just as people had been demanding. We do not know whether the fines, which in total were in excess of €7 million, were legally justified. This would be decided by the courts as everyone is set to appeal against the administrative sanctions imposed. As one of the lawyers defending some of the people fined said, the banks’ prospectuses about the bonds had been approved by CySEC. In its defence, the Commission argued that it could not have known that the banks withheld information.

This admission highlights the main problem. CySEC had not been exercising its supervisory responsibilities very effectively. We could only conclude that its investigation of bank prospectuses, before giving its approval, was not very rigorous. A supervisory body like CySEC, in theory, exists to protect investors and prevent directors and executives of public companies from misleading the public. In this respect the Commission failed spectacularly. Carrying out an investigation and imposing fines after the damage had been done is, in effect a public admission of this failure.”

Hands up anyone who believes these fines will ever be collected?

Never give in never give up

Pauline Read

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