Gone with the wind: Tower of Fraud

A Dubai-based real estate brokerage agency has allegedly vanished with Dh7 million taken from around 280 investors who bought timeshare options in a Jumeirah Lakes property, an investor and a leading construction firm told XPRESS.

The construction firm and the investor are planning to file a class suit against the real estate agency.

In February 2004, PIVA Real Estate Renting Services LLC signed an agreement with Dubai-based construction company Wind Properties to market timeshare options in 13 floors of the Wind Towers, part of the Jumeirah Lakes project.

These holiday options offered investors a fixed return over a period of 25 years and a free week-long stay in the towers once a year.

“This contract was terminated by Wind Properties after a cheque [National Bank of Dubai, No. 4875, issued by PIVA] of Dh4 million bounced in December 2004,'' Shahrokh Nikpour, the lawyer representing Wind Properties, said, adding that the cheque was an advance payment for selling timeshare options in 13 floors of Wind Towers.

“However, despite the termination of the contract, PIVA continued to sell the timeshare options and duped a total of 280 investors and collected a total of Dh7.355 million from them between February 2004 and December 2007,'' the lawyer alleged.

“When my client discovered the fraud, he demanded that PIVA hand over the contracts. PIVA signed with the investors and declare the amount of money collected from the investors,'' he said, referring to Dr Mahmoud Reza Azizi, the owner of Wind Properties. But PIVA avoided doing so.

The brokerage agency also made changes in the format of the contract provided by Wind Properties, he alleged, adding that the agency signed unauthorised contracts with the investors.
Following legal notices from Wind Properties, the general manager of PIVA, Paul Couzins, offered to settle the dues and gave a list of investors. The whereabouts of Couzins are not known.

PIVA, with commercial licence No. 237340, is owned by two Emiratis. One of the owners said: "I am out of that and can talk only when I come back after three days."

Nikpour said: “The owners are out of the country and we will have a meeting with them next week.''

While Wind Properties severed its ties with PIVA after the cheque bounced, the construction company failed to publicise the termination of the contract with the agency.

“We didn't publicise it in newspapers as we thought that PIVA would stop selling the options,'' the lawyer explained, adding that “our client was trying to solve the matter amicably with PIVA''.
Wind Properties neither informed the authorities nor lodged a police complaint.

“Timeshare is a new concept in Dubai and this would have damaged the reputation of the industry,'' a top official of Wind Properties said, requesting anonymity.

Wind Properties allegedly allowed PIVA to operate from its office in the Emarat Atrium building on Shaikh Zayed Road.

An office assistant at Wind Properties' office at suite number 145 in the ‘B' block in the Atrium building confirmed that PIVA's four staff members, including Paul Couzins, assistant Renu, IT executive Vikrant Shankar and office boy Kumar operated from this office.

PIVA was earlier based at Dune Centre on Al Diyafah Road till last September, before shifting to Emarat building. A dedicated phone line for PIVA at Atrium office goes unanswered.

“So many people are calling for PIVA every day,'' the assistant said.

But Nikpour denied that PIVA was operating from his client's office.

He said, “My client was trying to get documentary evidence of the fraud and that is why PIVA was given a space in the office.''

PIVA's website www.pivagroup.com is functional and offers timeshare options in Spain and Canary Islands, in addition to Dubai. The homepage still has two links leading to the Wind Towers. “The Wind Tower's close proximity to leading five start hotels, beach clubs, international restaurants and prestigious landmarks such as Burj Al Arab, make it a very prestigious address in Dubai,'' the website says.

“The 40-level Wind Tower comprises of residential duplexes and penthouses with private roof top gardens and swimming pools. PIVA introduces luxury holiday ownership apartments from first to 13th floor,'' it says.

There are two basic types of timeshare ownership. Traditional ownership offers a single timeshare property with the option to use it for a specific week during the year.

With points-based timeshare ownership investors purchase points or “currency'' to redeem, for access to a variety of resort locations and accommodations, so they can choose when to travel and for how long.

Jumeirah Lakes

According to www.jumeirahlaketowers.ae, “Jumeirah Lakes Towers is a dynamic waterfront community, encompassing attractive residential and office towers alongside hotels and retail outlets. A total of 87 towers stand tall in this prestigious project. 79 towers will be clustered in groups of three and will be surrounded by calming lakes, beautifully landscaped gardens and unique waterways. Four winding, man-made lakes create a vibrant waterfront environment and provide stunning views from all around.

Eight new towers with views over the Jumeirah Islands lakes will stand tall in the JLT Embankment areas. Jumeirah Lakes Towers is situated adjacent to Shaikh Zayed Road, between Interchanges 5 and 5.5 (currently under construction).''