One of the main hotel resorts which received investment from overseas property firm Harlequin Property has not filed accounts for seven years.
Buccament Bay Resort on the Caribbean island of St.Vincent - the flagship investment of the £200m unregulated Harlequin investment scheme - has failed to file any accounts or financial statements with the registrar of companies of the state of Saint Vincent since 2005.
According to documents seen by IFAonline from the deputy registrar of Saint Vincent, the Buccament Bay Resort is now in "default" of its obligations.
As a result it is liable to be struck off the island's companies register.
Harlequin was this week the subject of an alert by the Financial Services Authority (FSA), in which the regulator issued a warning to financial advisers about investing clients' money in Caribbean property through Harlequin.
In order to make sure a recommendation to invest in an overseas property investment is suitable for their customers, the FSA expects advisers to have undertaken thorough due diligence on the various developments being sold through Harlequin to fully satisfy themselves that it is a suitable investment taking into account all relevant factors.
This should involve consideration of how building work is progressing on the various sites and any factors involved in reported delays to completion.
Advisers must also establish precisely how their clients' funds will be used during the construction phase and the terms of their purchase agreements, and make a full assessment of all publicly available information about the overseas property investments through Harlequin and on all the parties associated with these investments.
A spokesperson for Regulatory Legal, which acts on behalf of clients invested in Harlequin, said: "The lack of transparent information is a concern for investors. It does beg the question what advisers were doing since 2005 to miss this."
In a statement Harelquin said:"Whilst there have been delays in filing accounts for Buccament Bay this is largely due to historic problems with its former accountants and UK auditors, Wilkins Kennedy, who are now the subject of a claim by Harlequin for professional negligence in relation to aspects of the work they did for Harlequin. Draft accounts have now been completed up to March 2011 and we expect to file these shortly."
Wilkins Kennedy said in a statement: ""Wilkins Kennedy were not appointed as auditors or instructed to file statutory accounts for Harlequin Property SVG Limited or any other overseas company within the Harlequin organisation.
"Wilkins Kennedy did act as auditors to Harlequin Management Services (South East) Limited the UK based property marketing company and resigned in 2010. New auditors were appointed and subsequent years accounts as audited by them were filed at Companies House.''
"Because of the on-going legal dispute we are not able to comment further other than to say Wilkins Kennedy is robustly contesting the claims against us."
Earlier this month, IFAonline revealed how a number of SIPP providers had stopped taking investments into Harlequin according to its biggest UK distributor, after concerns about it were raised by a law firm.
According to Harlequin, some of these SIPP providers have since lifted their suspension.
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