Spanish police have smashed a British-run timeshare racket on Spain's Costa del Sol that swindled up to 15,000 people and earned criminals around 18 million euros (12.3 million pounds), police said on Friday.

Police in the beachside city of Malaga arrested many of its leaders -- four Britons, two South Africans, one Belgian and a Norwegian -- during "Operation Trafalgar". One of the South African men is alleged to have masterminded the scam.

"These sums represent more than 90 percent of fraud involving the resale of timeshares on the Costa del Sol that we have seen in recent years," a police statement said.

Fraudsters used 300 companies and employed more than 1,000 people to run a number of different scams that preyed upon timeshare owners and others interested in buying, most of them from Britain.



Offering timeshare owners the chance to sell their time slots to potential buyers, the group tricked owners into transferring money to pay for legal and management costs.

In another scam, fraudsters sold the same holiday home to different people and doubled their money by taking both the seller's and buyer's funds. They even swindled some victims a second time by posing as lawyers offering legal services to recoup money stolen in the original fraud.

Police said the fraudsters set up telemarketing operations in modest, unmarked offices for a few months at a time before disappearing and reappearing at a new location.

The Costa del Sol has long been dubbed the 'Costa del Crime' by the tabloid press because of its reputation as the favoured retirement spot for big-time British criminals.

During searches police said they found contracts, lists of thousands of properties, bank account references and a gun.

Around 750,000 Britons live in Spain, the British embassy estimates, the majority of them on the coast.

Malaga: More than 15,000 affected by a timeshare-multiproperty fraud the Police it has stopped in Malaga to the eight people in charge of an organized group of multimillionaire and massive frauds in reventa of multiproperty(Timesharing resell)…. The swindle would affect more than 15,000 victims and, supposedly, the organized group obtained benefits of about 18 million euros. According to the Main directorate has informed east Friday into the Police, in this denominated operation “Trafalgar” has been dismantled the cupola of this network, that operated from the Coast of the Sun and that from year 2000 used to 300 companies and more than 1,000 people to commit its frauds. The arrested ones are original of the United Kingdom, South Africa, Belgium and Norway and have been stopped in the Malaga localities of Fuengirola, Mijas and Coín (Costa del Sol-Spain). The Consumer´s Association Afectados Mundo Magico (ACAMA) dedicated to the defense of the consumers in the advantage in turn of tourist real estate, timesharing, has been coming denouncing for a long time the fraud that commits the companies of reventa (resell companies in Spain) and in the deceit that takes place with assiduity, since in most of the cases it is not gotten to resell his week, losing the given money, which we considered a swindle. We have even denounced before the National Hearing to several of these companies. ACAMA this studying the possibility of go on itself in the procedure that take by these haltings, in defense of the group of consumers affected (Europe, U.K….) after the successive scandals and collective swindles that are giving in Spain. For but information it contacts with the Tfno: +34952215859 email: correo@afectadosmultipropiedad.com
For more information please visit: www.afectadosmultipropiedad.com

A 50ft wave caused by a force-9 gale left six people injured and the flagship damaged
A FREAK wave smashed into one of the world’s largest ferries in the Bay of Biscay, terrifying passengers and forcing the ship to divert to a French harbour.

The wave, estimated at between 40ft (12m) and 50ft high, crashed into the Pont-Aven, the flagship of the Brittany Ferries fleet, at 10.25pm on Sunday, smashing windows and injuring at least six people. Cabins more than 50ft above the waterline were flooded.

Passengers described seeing a wall of water, followed by an explosion and then seeing people running around covered in blood after being hit by glass.

The 41,000-tonne Pont-Aven, which was sailing from Plymouth to Santander in northern Spain, was forced to pull into the French port of Roscoff for emergency repairs.

The 1,150 passengers on board were offered a refund and told that they could return to England on another ship or make their own way to Spain. Some complained that they had been left stranded with no way to continue their journey.

The wave struck at the height of a Force 9 gale that had caused the cancellation of dozens of crossings in the Channel. The £100 million Pont-Aven, the largest and most modern vessel in the fleet, was being buffeted by heavy seas when the wave struck.

Among the passengers were the owners of 19 classic cars who were heading for a rally in Barcelona. Richard Lloyd, of Brackley, Northamptonshire, said: “It had been pretty rough the night before as we headed down the Channel.

“During dinner, bottles were tipping over and things sliding about but, when we turned the corner into the Bay of Biscay, it really got bad. I have never seen seas like it. I saw a huge wave, a wall of water roaring past, and there was a loud noise like an explosion when it hit.

“Minutes later people were running around the ship very frightened. Some had what looked like shrapnel wounds and others were covered in blood.” Mr Lloyd, 60, a motor racing entrepreneur, had been on his way to the car rally with his wife, Phillipa, and 18 other competitors.

He said that they would now have to drive their ageing vehicles an extra 600 miles and might miss the start of the rally. So many entrants were on the boat that the organisers have shortened the event by a day to compensate.

Dave French and his partner, Val Bostock, from Bolton, were on their way to Alicante with their motorcycle.

Ms Bostock said: “We woke up to find water in the cabin and we were on Deck 6, well above the sea. The alarm sounded and we were told to go to the restaurant.

“We knew conditions were getting bad the night before when the magician had to cancel his act because his table kept sliding off the stage.” She said that they were given another cabin on the eighth deck.

“They have said we will get our £400 ticket money back,” she said, “and they did dry out all our wet clothes for us. But we now have to spend another day or two on our journey.”

The ship, which docked at 5am, is expected to be out of action until the week’s end

Taken from The Times.

Chaos as record numbers of boat people arrive in Tenerife

The authorities are bracing themselves for yet more mass landings of boat people in south Tenerife as the weather holds good and the sea remains calm.

The last week has seen arrivals on a scale never before experienced, bringing the emergency services to their knees as field hospitals and local police stations struggled to cope with an influx numbering thousands. Indeed, the scale of the problem seems to have paralysed the regional and central governments, locked in a bitter war of words and recriminations over how to stem the tide of humanity which is threatening to overwhelm archipelago resources.
In the seven days from May 11 to 18 a total of 27 cayucos or open boats carrying 2,140 people, nearly all of them young men, arrived in this province, nine of them with 623 occupants on one single day alone.
Sources close to the police station in Playa de las Américas where over five hundred people were being held described the situation inside as total chaos, with four to a mattress, a desperate lack of hygiene and no interpreters.
Hopes of the repatriation of at least some of the latest arrivals were scotched yesterday when Mauritania announced it would not be accepting any more deportees after admitting sixty of its nationals this week.
Three hundred Mauritanians in a Canary holding centre whom the authorities had anticipated returning next week will now have to remain where they are, though after forty days’ detention by law they must be released on to the streets.
Meanwhile the local authority in Arona is expressing concern over the long-term consequences the landings may have on the tourist sector. They fear what they call negative and sensationalist reporting of the situation in the British and German press may persuade potential visitors to look elsewhere for their holidays.

The owner of Pocono Raceway plans to build a high-class timeshare resort complex rather than a slots parlor across the street from the famed NASCAR racetrack.

Dr. Joseph Mattioli — who late last year scrapped plans to build a $300 million resort featuring a slots casino near the racetrack — describes his planned project as "an extended stay resort."

Mattioli, 81, wants to build a "Raceway Village" of up to 250 two-story, modular rental units on a 125-acre parcel he owns across Long Pond Road from the track.

The resort would include single-family, two-family and multi-family rental units, each of them 1,200 square feet, said Mattioli, who estimated the project's cost at about $50 million.

Mattioli hopes to attract a well-heeled clientele to stay at the resort for a few days or a few weeks at a time. He said he expects the resort to do a booming business both for the two annual NASCAR races at Pocono Raceway — one in June, one in July — and ski season.

Mattioli said he has not decided on rates but noted "the prices will be high."

The gated resort would feature numerous amenities such as a multimillion-dollar clubhouse with a ping-pong room and a bocci court, Mattioli said Monday at a work session Tunkhannock Township supervisors convened to discuss the project.

Tunkhannock officials "agree in principle" with Mattioli's plans, said Supervisor Chairman Richard Van Noy.

The resort would eliminate the chance that a large residential development — which would add hundreds of children to Pocono Mountain School District and drive up school and municipal property taxes — could be built on the parcel, Van Noy said.

"We're in agreement on the concepts," he said. "We're here to see what we have to do to get this resort up and running. ... The important aspect of this is that it will not breed children."

Mattioli's resort plan faces a major municipal hurdle, though: The site is in an R-1, or Residential, zoning district, in which no commercial development is allowed. That means Mattioli must petition Tunkhannock supervisors to amend the township's zoning ordinance in order to proceed.

Much of the discussion at Monday's work session centered around how best to change Tunkhannock's zoning regulations, both to allow Mattioli's planned resort and to protect the township's interests in case the project falls through or founders.

Consensus pick for best solution was the addition of an "overlay district" to the R-1 zoning district. An overlay district would allow Mattioli or other developers to build commercial projects that meet specific, closely defined criteria in areas zoned R-1. They would also retain the option to build projects that meet standard R-1 requirements.

Ralph Matergia, Mattioli's attorney, said he will submit a petition to amend the zoning ordinance to Tunkhannock supervisors. The petition will outline specifics of the overlay district.

Supervisors will forward the petition to the township and county planning commissions for comment, then hold a public hearing to discuss the proposed changes.

Monday's work session attracted a handful of curious Tunkhannock residents, most of whom did not speak but seemed eager to hear details of the planned resort.

Mattioli had one big fan in the audience, though.

"Mattioli is the best thing that ever happened to this township," said Marjorie Nowinski, 80, who noted that township taxes went down after Mattioli's racetrack hit high gear. "I am for the Mattioli project."

Ashley Igdalsky, Mattioli's granddaughter, "will run the whole operation" of the resort, said Mattioli, who noted that one reason he decided to pursue the project is that he could make it a family venture.

He cited the lack of opportunity to involve his close-knit family in running a gaming resort when he dropped plans to build a slots parlor last fall.

Mattioli said he has a contract with Deluxe Homes of Berwick to build the modular units and he is ready to start work on the project as soon as he wins final approval from Tunkhannock Township.

The 233-room Radisson Suite Beach Resort on Marco Island has a new owner — Marriott Vacation Club International is buying it for $58 million.

Boykin Lodging Co., a real estate investment trust that trades on the New York Stock Exchange as BOY, announced that the sale is to close June 30.

Marriott Vacation Club, based in Orlando, markets timeshare rentals around the world.

The Radisson’s future has been the subject of some heated Marco Island debates this year, when Boykin attorneys requested permission for future purchasers to convert the resort to condo units and build taller than the 150 feet that city rules allow.

The Radisson is on South Collier Boulevard in a neighborhood zoned residential tourist and is 125 feet tall.

While Marco Island planners are willing to offer some incentives, current rules state that if Marriott tears down the Radisson, it could rebuild 120 condos in a 100-foot-tall building.

Proposed incentives would allow Marriott to build 120 condos in a 150-foot-tall building as long as Marriott retains half of Radisson’s existing hotel rooms.

Prior to completion of the sales agreement, Boykin senior vice president Russ G. Valentine dismissed that scenario, saying it would require that a new buyer build to 200 feet to accommodate the 116 hotel rooms and 120 condo units called for in city incentives.

Marco Island Planning Board members held their ground.

At the time, Valentine said he doubted any developer would move forward with the plan if the city didn’t make some concessions.

Tuesday, Boykin attorney Clay Brooker, of Cheffy Passidomo Wilson and Johnson, said he was instructed by Boykin not to comment on the project.

Unless Marco Island City Council members reverse the planning board’s decision, Marriott will either be keeping the structure as is or will be limited to erecting a 100-foot-tall condo-minium with 120 units.

Boykin officials wouldn’t confirm that Marriott is the purchaser, but Marco Community Development Director Vince Cautero did so.

Cautero said Wednesday that he has had several preliminary meetings with Marriott Vacation Club officials, but no definite plan has emerged.

While neither Radisson nor Marriott are mentioned by name, the incentives and concessions in the city’s residential-tourist neighborhood are the subject of a 4 p.m. Monday workshop with the Marco Island City Council and Planning Board members.

It would be taken up again as first reading of a city ordinance at the council’s regular meeting at 6 p.m. Monday. The ordinance addresses adjusted height, density and standards in the residential tourist zone, City Clerk Laura Litzan said Wednesday.

Boykin’s agreement with Marriott could extend the closing to July 30 and is subject to analysis by Marriott attorneys.

A new survey of second-home owners by the National Association of Realtors® shows Baby Boomers continue to dominate the market, and a growing number of second homes – more than one-in-10 – are owned by minorities. A surprising majority of respondents own multiple properties in addition to their primary residence.

David Lereah, NAR’s chief economist, said the market continues to be dominated by the baby boom generation. “Middle-aged, middle-income households are the driving factor in the second-home market, with favorable demographics providing a solid fundamental demand in this sector for the next decade,” Lereah said. “Boomers believe in diversifying their assets, and most second-home owners see their purchase as being a better investment than stocks. A surprising majority of survey respondents hold multiple properties, and they are interested in purchasing additional homes.” About six in ten respondents own two or more homes in addition to their primary residence.

Minorities have become more active in the market, accounting for 11 percent of vacation home purchases between 2003 and 2005 in contrast with 6 percent of purchases in 2002 or earlier. In the investment property segment, minorities accounted for 17 percent of transactions between 2003 and 2005 compared with 11 percent in 2002 or earlier.

An unexpectedly high number of vacation-home owners, 21 percent, own two or more vacation homes. In addition, 34 percent of vacation-home owners report they own two or more investment properties.

More than half of investment property owners, 53 percent, own two or more investment homes and 12 percent own two or more vacation homes.

Analysis of U.S. Census Bureau data shows there are 6.8 million vacation homes in the United States and 37.4 million investment units in addition to 74.6 million owner-occupied units.

NAR President Thomas M. Stevens from Vienna, Va., said the term “second home” appears to be something of a misnomer. “The fact that so many owners of vacation homes and investment property have additional properties is a bit of a revelation,” said Stevens, senior vice president of NRT Inc.

“We’ve always known that a certain segment has invested heavily in the rental market, and some people earn their living simply by holding and managing investment property. What we see now is a crossover between largely vacation- and investment-home owners, with people recognizing the value of those investments and pouring more assets into real estate,” Stevens said.

The typical vacation-home owner is 59 years old, earned $120,600 last year, and purchased a property that is 220 miles from their primary residence, but 34 percent were less than 100 miles and another 34 percent were 500 miles or more. Eight out 10 drive to their property, and half of vacation homes are located within the same state as the owner’s primary residence. Eighty-three percent of owners are married couples.

Three-fourths of vacation-home owners purchased for personal use, although one-third also wanted to diversify investments, and 18 percent intended that the home would become a primary residence in retirement. Only 13 percent of vacation owners listed rental income as a reason to buy. The typical owner spends 39 nights per year at their property, and three-quarters do not rent out. Of those who do rent their vacation home, the median number is 12 nights per year.

The median age of an investment owner is 55, with an income of $98,600 in 2005; 75 percent of owners are married couples. Their investment property is located close by, within a median distance of 10 miles.

Two-thirds of investment-home owners purchased their property to generate rental income, and half viewed the property as a way to diversify investments. Eight out of 10 spend no time in their property. Not surprisingly, 80 percent rent it out, with 73 percent renting for at least six months per year.

For all second home owners, their most recent property was purchased a median of six years ago. However, most have held additional properties for longer periods.

As for attributes desired in a vacation home, two-thirds want to be close to an ocean, river or lake; 39 percent close to recreational or sporting activities; 38 percent close to vacation or resort areas; and 31 percent close to mountains or other natural attractions.

Leisure activities of interest to vacation-home owners include beach, lake or water sports, 57 percent; boating, 38 percent; hunting or fishing, 32 percent; golf, 21 percent; biking, hiking or horseback riding, 20 percent; ski or winter recreation, 17 percent; and tennis, 9 percent.

Half of vacation homes are located in resort or recreational areas, 18 percent in small towns and 16 percent in rural areas. Four out of ten are detached single-family homes, 22 percent are cabins or cottages, 21 percent condos in buildings with five or more units, 7 percent a townhouse or row house, 5 percent a mobile or manufactured home, and 3 percent are located in two-to-four unit structures; 1 percent were other. Six percent said their vacation home was a timeshare unit.

The median size of a vacation home is 1,480 square feet, 29 percent were new when purchased, and owners estimated the current value to be a median of $300,000 – 68 percent said the value of that property was lower than their primary residence. Sixty-five percent of owners said their vacation property was a better investment than stocks.

Six out of 10 investment properties are located within metropolitan areas. Half are single-family homes, 21 percent are a duplex or apartment in a two-to-four unit structure, 13 percent condos in a building with five or more units, 8 percent a townhouse or row house, 3 percent a mobile or manufactured home, and 2 percent a cabin or cottage; 4 percent were other.

The median size of an investment property is 1,520 square feet, 15 percent were new when purchased, and owners estimated the current value to be $200,000. Three-fourths said the value of their investment property was lower than their primary residence, and 70 percent said their property was a better investment than stocks.

Four percent of vacation-home owners and 8 percent of investment owners said they intended for their child to occupy that property while in school.

Among buyers of second homes in recent years (since 2003), two-thirds purchased through a real estate agent. Eighteen percent of vacation homes and 17 percent of investment properties were purchased directly from owners, while 14 percent of vacation homes and 7 percent of investment properties were purchased directly from builders.

Thirty-two percent of all vacation-home owners and 24 percent of investment owners paid cash for their property. Combined with mortgages that have been paid-off, 82 percent of vacation homes and 75 percent of investment properties are owned free and clear.

Of owners who purchased with a mortgage, the median down payment on a vacation home was 27 percent and the median down payment for an investment home was 23 percent.

When asked about the source of down payment funds for more recent vacation-home owners with loans, who purchased since 2003, half said savings, 23 percent from the sale of other real estate, and 19 percent identified equity or sales proceeds from their primary residence.

For more recent investment owners who purchased with mortgages, half said down payment funds came from savings, 28 percent from equity or sales proceeds of their primary residence, and 18 percent from the sale of other real estate.

“With older baby boomers just now reaching 60 years of age, and younger boomers in their early 40s, the lifestyle preference of boomers will figure prominently into future demand for vacation homes,” Lereah said. Eleven percent of vacation-home owners said they were planning to buy another home within two years, and 10 percent said they planned to sell.

On the other hand, ownership of investment property hinges on financial gains that can be expected from rental income and appreciation. “Mortgage interest rates, local economic conditions and the local rental market are more important factors in investment decisions. Cooling appreciation rates and greater loan oversight are expected to discourage the speculative element in the investment market, although that is likely to be a relatively small portion of the overall market,” Lereah said.

Even so, 35 percent of all investment-home owners said they were planning to buy another home within two years. For those who currently own four or more investment units, 64 percent said they planned to buy another property within two years, and 17 percent said they planned to purchase five or more additional properties.

Twenty-eight percent of investment owners plan to sell a property within two years.

The 2006 National Association of Realtors® Profile of Second-Home Owners is based on an eight-page questionnaire mailed in January 2006 to a nationwide sample of 45,000 households who owned more than one residential property. It generated 416 usable responses from vacation-home owners and 619 from investment owners.

DEBT-LADEN Metroplex Bhd, a hotel and property firm, is in negotiations with its lenders to sell The Legend Resort, Cherating and expects to complete the sale by year-end.

It wants to sell the resort to its profitable time-share subsidiary, Legend Worldwide Holidays Bhd (LWHB).

Metroplex Holdings Sdn Bhd leisure division vice-president (sales and marketing) Steve Woon said Metroplex is currently in talks with lenders to modify conditions and other terms that would allow LWHB to take over ownership of the popular Legend Resort, Cherating in Pahang.

"We (LWHB) are proposing to take over Metroplex's entire loan outstanding in The Legend Resort, Cherating in return for total ownership. We expect to repay the loan in full within five to seven years, using internally-generated funds," he told Business Times.

He declined to reveal the outstanding loan balance, but that signals from the lenders seem positive and hopes to close the talks "soon".

The news comes four months after Metroplex revealed that it would sell The Mall shopping complex and the adjoining office towers - known as Putra Place - at Jalan Putra, Kuala Lumpur, to the Employees Provident Fund (EPF) for RM438.3 million to pare down part of its RM1.7 billion debt as at April 30 2006.

Woon said the group is still awaiting the Securities Commission and the Foreign Investment Committee to give a stamp of approval for the sale of The Mall and Putra Place.

"We don't foresee any hiccups," he added.

Already, EPF has been in constant touch with the hotel and property firm to keep abreast of day-to-day operations of the shopping complex and office towers, but is not allowed to take over until the sale is approved.

It is understood that EPF has identified some mall operators to run the shopping complex on its behalf.

"But if they want us to manage the shopping complex, we are ever ready," said Woon.

Metroplex posted a net loss of RM309.1 million on revenue of RM125.4 million for its fiscal year ended January 31 2006.

In contrast, LWHB expects a 12-15 per cent rise in net profit to RM2 million and a 15 per cent rise in revenue to RM30 million for its fiscal year ending January 31 2007.

"Based on our (LWHB's) first quarter results, we are on track to achieve our targets," said Woon.

The company is looking forward to buying The Legend Resort, Cherating and turning it into a time-share property for its 9,000-odd members.

Time-share is an ownership scheme, which allows people to purchase into a group of properties and use them for a specific time period each year.

LWHB currently leases from Metroplex The Legend Hotel, Kuala Lumpur and The Legend Resort, Cherating under its time-share scheme, as well as affiliates with other independent resorts and hotels around the world and Interval International Inc, a Miami-based time-share exchange company.

"To become a successful timeshare operator in the likes of the Marriotts and Hiltons, you must own your own resort. (The reason is that) you are then deemed to be a serious player and that would give you a better selling point," said Woon.

"However, (given the limited funds,) we will buy our own timeshare resorts one at a time," he added.

THE Hamiltonian Hotel and Island Club is being sued by the Government's Debt Enforcement Unit (DEU) after clocking up a seven-figure sum in unpaid Government taxes.

Attorney General Larry Mussenden said yesterday that he had instigated proceedings against the hotel for seven different taxes that it owed.

The DEU, set up in January 2005 to move in on delinquent taxpayers, operates out of the Attorney General's chambers and Sen. Mussenden revealed that it has collected approximately $5 million in tax arrears, with another $5 million the subject of litigation.

Auditor General Larry Dennis this week described the Hamiltonian Hotel and Island Club as "an atrocious corporate citizen" after the Pembroke establishment again topped his "name and shame" list of the most delinquent taxpayers.

When Mr. Dennis first appended the list of companies owing the most in payroll tax and pensions contributions to his annual report on Government finances in 2000, the Hamiltonian was at number one.
Six years later, the cluster of timeshare units on Langton Hill is still at the top – and it owes considerably more to the public purse.
Asked about the Hamiltonian case yesterday, Sen. Mudssenden said: "It is not our policy to comment on any individual cases, particularly those that are still before the courts."

But he confirmed that the legal action was to claim for money owed to the Government in the form of payroll tax, social insurance, the hospital levy, land tax, hotel occupancy tax, timeshare services tax and employment tax.

"As I have stated on previous occasions, I am pleased to confirm that the Debt Enforcement Unit (DEU) has already begun instituting legal proceedings against those delinquent debtors that are on the Auditor General's list with a view to recouping outstanding taxes owed to Government," Sen. Mussenden (pictured right) said. "Since its inception at the beginning of 2005, the DEU of the Attorney General's Chambers has collected approximately $5 million in tax arrears. Further, we have another $5 million under litigation before the courts.

"Further, as a result of our combined efforts with the Tax Department, there are a number of tax debtors who are on a payment plan that amounts to over $3 million.

"It is our aim to pursue each and every delinquent employer and person who owes taxes to the Bermuda Government. We continue to encourage delinquent tax payers to contact our offices to discuss their matters with a view to becoming current."

The Hamiltonian, which comprises 32 one-bedroom suites, now owes Government around $1 million, according to the Auditor's report, tabled in the House of Assembly last week. Of that, $469,036 is payroll tax, while $220,633 is unpaid pension contributions and $307,631 is land tax.

Back in 2000, on the Auditor's first list of shame, the Hamiltonian owed $345,000 in payroll taxes and $180,000 in pension contributions.
As the establishment has continued to operate, the debts have continued to mount, and Mr. Dennis believes the situation is unacceptable.

"The Hamiltonian is an atrocious corporate citizen and for the Government to have allowed this company to continue operations, and to put pension benefits of workers in jeopardy, is outrageous," Mr. Dennis said this week.

The manager of the Hamiltonian declined to comment yesterday.
In his report, the Auditor said the Government and its public pension fund were owed $38 million.
He pointed out that there were 34 employers who, at July 2005, owed pension contributions in excess of $40,000 that were more than 90 days in arrears. Most of them appeared on the same list last year.
And there were 39 employers who owed payroll taxes in excess of $40,000 that were more than 90 days in arrears.

Mr. Dennis noted that the DEU was having a beneficial effect on the situation.

The former general contractor of the new Berkeley school project, Pro-Active Management Systems Ltd., is second on the pensions contributions arrears list, owing $160,049, and third on the payroll tax list, owing $272,408.

Several construction firms appear on the list of shame, including Fine Touch Construction and Maintenance Ltd., which is in second place on the payroll tax list, owing $368,476.

What happens to an Olympic Village after the 2,500 athletes from 85 participant nations have left? For the Torino 2006 Winter Olympics the answer was simple – start work on turning the village into a timeshare resort.

The result is Villaggio Olimpico, an Interval International-affiliated resort situated in the town of Sestriere on Italy’s north-western border with France. This Alpine resort, owned by Olimpico Villagio Srl., will open in June 2006, when more than 280 units will be available for exchange.

Planned with the features of the surrounding landscape in mind, the village at Sestriere is a complex formed by seven buildings. The facilities are directly linked to the ski lifts through a hall area protected by a large window, which overlooks the ski slopes themselves.

David Clifton, Interval International’s managing director, Europe, Middle East, Africa and Asia, said: “For two weeks in February 2006, the region around Torino in northern Italy was the centre of the sporting world.”

“Hosting the Olympics is a great honour and not only a showcase of sporting excellence, but also a chance for the host nation to revitalise local infrastructure and economies. By turning to timeshare, the Olympic Village has really looked to an innovative and profitable alternative use.”

As its name suggests, Villaggio Olimpico is an ideal base for visitors wishing to take advantage of the world-class ski and snowboarding slopes. Built in 1934, Sestriere is one of the earliest and still one of the highest purpose-built ski stations.

LAS VEGAS, NV -- (MARKET WIRE) -- 05/03/2006 -- Sunterra Corporation (NASDAQ: SNRR)

-- Outlines strategic direction and growth prospects

-- North American business to power continued growth driven by quality improvements in all areas

-- European business to be downsized, eliminating costs and focusing on existing properties and members

-- Sunterra flagship properties carrying Embassy Vacation Resorts brand to be re-branded as Sunterra resorts

-- Current guidance withdrawn

Sunterra Corporation (NASDAQ: SNRR) today announced that it has completed the previously announced strategic, operational and marketing review that has been underway since last year. Working with the support of the Boston Consulting Group, which was engaged in November 2005 to assist with the review, Sunterra's management has developed and is in the process of implementing a plan that has been approved by Sunterra's board of directors.

Nicholas Benson, President and Chief Executive Officer, said, "Since 2002, we have focused on driving higher revenues and profitability while strengthening our balance sheet, increasing cash flow and building our inventory of high-quality resort locations and development opportunities. This global product and marketing review has given us a deeper understanding of the underlying trends that are shaping our industry. That, in turn, has enabled us to chart the current strategic and operational direction our company needs to take to deliver increasing value to our shareholders.

"Sunterra has been through a remarkable four years since emerging from its reorganization in 2002," Mr. Benson noted. "We have added 17 resorts to our global portfolio and we have seen our member base grow to 317,000 member families. Our operational and product platform has been overhauled, giving us today a highly scaleable and eminently flexible springboard from which to launch the next phase of our growth. We see the potential to deliver a quality product to the market segment we have targeted, and we have a high degree of confidence in the capacity of that market segment, which we believe remains largely untapped. We look forward with excitement and optimism to the next chapter in Sunterra's growth."

North America to drive revenue and earnings growth

The plan anticipates consistent and continuing growth in Sunterra's North American business, centered around high-quality resorts and with an enhanced focus on customers who fit the affluent "baby boomer" demographic. Capital will be deployed to acquire and develop high-quality resort accommodations and amenities in destinations attractive to this market segment. The emphasis will be on the quality of accommodations to drive higher-volume transactions and generate higher-margin sales. Sunterra's marketing programs will focus on delivering higher-quality marketing tours to targeted destinations, which are expected to result in improved sales efficiencies associated with these destinations.

The Company's current experience with properties and customers of this type provides strong evidence that sales volume per guest and advertising sales and marketing (ASM) costs will both show improvements by pursuing this strategy. By shifting the sales, marketing and product emphasis in this way, Sunterra expects to be able to continue to grow net income, EBITDA (earnings before interest, taxes, depreciation and amortization), and adjusted EBITDA. In addition to these internal growth expectations, Sunterra will continue to consider selective and strategic acquisitions.

Sunterra Europe

As a result of recent market conditions, as well as overall performance of its European segment, the Company has decided to make some significant changes to its European operations. The size of the European business will be reduced and unnecessary and duplicative costs will be eliminated or reduced. New member marketing programs will be curtailed, management streamlined and infrastructure reduced; however, the high service levels to which Sunterra's existing European members have become accustomed will be unaffected. The Company's resort management operation will continue substantially unchanged, as will its member services operation, including travel services.

These changes, which are expected to be fully implemented by August 2006, are expected to result in a substantial reduction in European vacation interest revenues while associated ASM costs as a percentage of vacation interval sales will be lower. The continuing club and property management businesses are expected to continue to contribute at historic levels to the profitability of the European business. The Company expects to incur a pretax charge preliminarily estimated to be approximately $12 million to $17 million in connection with these proposed changes, which are subject to certain statutory employee consultation requirements prior to their implementation.

Mr. Benson said, "We have taken these decisive steps with Sunterra Europe in the context of extremely challenging market conditions. While we would have preferred to see our revenues restored to previous levels through various marketing initiatives, this option is too costly to pursue at this time. The initiatives we are pursuing are intended to enable us to run a profitable business that generates a worthwhile return, while clearly emphasizing the commitment of Sunterra to its owners and to the continued development of our European club products and benefits. Our European members can be assured that we remain fully committed to providing them with outstanding vacation experiences."

Four flagship properties to carry Sunterra name

Together with Hilton Hotel Corporation, Sunterra has decided to reflag its premier resorts at Grand Beach, Orlando, Fla., Lake Tahoe, Calif., Ka'anapali Beach, Maui, Hi., and Poipu Point, Kauai, Hi. This action reflects Sunterra's desire to continue to build its brand presence and awareness at high-quality resorts. There will be no significant changes to member benefits or pricing associated with this change, as Sunterra, not its members, will bear all costs associated with the re-branding, which are anticipated to be approximately $3 million. The Company will cease payment of all franchise fees associated with the Embassy Vacation Resorts brand. Guests can expect the same level of quality that they have always received at all four resorts and the re-branding is expected to be completed by December 2006.

Additional press release issued today

Sunterra also issued today a press release relating to its payment of Spanish withholding taxes, its intention to restate its previously issued consolidated financial statements, its determination that such financial statements (as well as any related financial information or related auditor's reports) can no longer be relied upon and an investigation by Sunterra's Audit and Compliance Committee of certain allegations made by an individual formerly employed by Sunterra's Spanish operations. Investors are cautioned to also review that press release.

Guidance

Under the current circumstances, the Company withdraws its existing guidance, and expects to update its guidance at a later date.

Investor Meetings

The Company plans to hold meetings over the coming weeks with investors to discuss the opportunities relating to the strategic plan and the European restructuring. Please register your interest in attending a meeting by contacting Marilyn Windsor, Vice President of Investor Relations, at (702) 304-7149 or by sending an email to mwindsor@sunterra.com.

About Sunterra

Sunterra is one of the world's largest vacation ownership companies with more than 317,000 owner families and nearly 100 branded or affiliated vacation ownership resorts throughout the continental United States and Hawaii, Canada, Europe, the Caribbean and Mexico. Sunterra news releases, as well as additional news and information on the Company, can be found at www.sunterra.com.