Criminal investigation of Silverpoint and Excel Hotels and Resorts is announced

Arona's Investigating Court Number 1 has opened preliminary proceedings against Silverpoint Vacations SL (“Silverpoint”) and Excel Hotels & Resorts SA (“Excel”). The alleged crimes relate to the bankruptcy of Silverpoint, the timeshare giant that centred its operations in the south of Tenerife.

Silverpoint had been losing hundreds of court cases related to mis-selling timeshare products, and went into voluntary liquidation in February 2020. Hundreds of investors, many of them elderly pensioners, lost their life savings, while it appears that their money was moved to other group companies, many of which were based offshore. 

Significant assets of Silverpoint were transferred to Excel before the insolvency was announced. The Prosecutor's office is alleging crimes including punishable insolvency, frustration of execution, and procedural fraud.

Concealment of assets:
One of the potential crimes is “alzamiento de bienes” or concealment of assets. This crime makes it hard for creditors to find assets with which to cover their debt. It appears that millions of euros of assets including timeshare weeks and apartments were removed from Silverpoint shortly before the timeshare giant filed for bankruptcy.

One of the main recipients of these assets was the resort management company Excel, formerly known as Silverpoint Hotels & Resorts SA. Several related resorts, including Beverly Hills Club, Beverly Hills Heights, Hollywood Mirage and Palm Beach Club, are still managed by Excel.