Harlequin Property, a UK-based overseas property sales agent that is not regulated by the Financial Services Authority (FSA), has agreed a "substantial" out of court settlement with a number of investors who wanted their money back.
The case was brought on 6 March 2013 by Regulatory Legal on behalf of the individuals who had invested in Harlequin properties.
Thousands of investors have put money into the £200m scheme run by Essex-based Harlequin, which has promised to build luxury villas in St Lucia, St Vincent, Barbados and the Dominican Republic.
Within the court proceedings an application was made to freeze Harlequin Property ‘s assets, however the parties reached an agreement on the 8 March 2013. The terms of the settlement are confidential.
Procedurally, the claimants' lawyers will appear before the court on 14 March 2013 to obtain an order from the court finalising proceedings.
Harlequin Property has been dogged by problems in recent months.
Last week the Serious Fraud Office (SFO) launched a joint investigation with Essex Police into complaints in relation to the Harlequin group.
The SFO has opened an online questionnaire asking investors for details about their investments and who introduced them to the group.
IFAonline revealed two weeks ago that Harlequin is having "severe" problems issuing payments due under the terms of its agreement, with some investors having payments missed for the second consecutive month.
Under the terms of its agreements with investors, Harlequin pays the interest on borrowings where investors have re-mortgaged their homes to invest in a Harlequin property in the Caribbean.
The interest is supposed to be paid until the completion of the off-plan property the investor has invested in.
Harlequin Property was also 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.
The FSA has also contacted self-invested personal pension providers asking them for details of members' holdings in Harlequin.
In a statement Harlequin said: "On Thursday 7 March 2013, Regulatory Legal Solicitors, acting for six purchasers of properties at Buccament Bay Resort, applied for a freezing order against Harlequin Property and Buccament Bay Resort Limited, but the court refused their application.
"This application followed days of media speculation unfairly inferring that Harlequin Property and Buccament Bay Resort would be forced to stop trading.
"Harlequin is pleased to say that the court refused to grant the application after a fully-contested hearing.
"Harlequin denies any wrongdoing and looks forward to clearing its name in relation to the other allegations that are currently being unfairly referred to in the press."
Has been cold-calling consumers
New shares admitted to London Stock Exchange
Slow and steady growth
Missed funding target by £240,000
Denies any wrongdoing