Latest update April 19th, 2024 12:59 AM
Oct 26, 2009 News
– executive member vanishes after re-selling house lots
NEW AMSTERDAM, BERBICE – Members of a New Amsterdam housing group are alleging that a senior group member has vanished with their money after re-selling house lots that they had already purchased.
Police who are investigating the claims said that the fraudster may have taken some $1 million, but the victims say that they have lost much more.
So far, four victims have contacted the police, and a report on the case has been sent to the office of the Director of Public Prosecutions.
The victims are from the New Savannah Park Community Development Housing Group.
House lot owner Rayburn October explained that the 84 group members paid $152,000 each to purchase the 50 by 90 feet house lots.
The payments to the Town Council collectively commenced in 2005.
The final sum of $600,000 was paid on October 9, and the Transport for the entire housing scheme was uplifted on October 16.
All house lots in that scheme were sold in 2005 but there were some persons who paid in monthly and weekly installments.
According to Mr. October, it took about five years for the entire deal to finalize and within that time the senior member of the group had re-sold at least 15 plots of land at higher prices ranging from $300,000 to $500,000 and never informed them.
Earlier this year, the said member informed the 84 persons that some among them had not been honouring their obligations. In addition they were told that a few lots, 15 in number may have to be re-sold.
“Each time he came to a meeting, every other Sunday, he would say we have defaulters and he would sell back about 15 house lots and give back the money already paid to the defaulters,” Mr. October stated.
But he alleged that unknown to them, the senior group member was selling plots which were already paid for.
Some of the group members are unsure whether their plots have been re-sold.
Some of the new buyers were never allowed to view their plot but just given the assurance that all is well.
But the scam unfolded on October 11, last, this year when a man attended one of their bi-weekly meetings and announced that he had purchased a plot in the very scheme three days before.
The gentleman produced a receipt signed by the very member who is now missing in action.
“How could he have purchased a plot when all were sold out since 2005? I don’t even know if my land is sold. The original owners would have house lots but the people he sold to do not have lot numbers and they never even see them and they had receipts to show they bought it from him,” Mr. October said.
Orlin Lagdoue is one of the 84 members who already own a plot. When she learnt the lots owned by defaulters were up for sale, she purchased one for her sister Collette Stephen who lives in the United States of America.
On May 4 this year, Orlin Lagdoue paid $300,000, which was more than the real cost for the land, to the member and was given an official receipt.
Each time she enquired of the exact location of the ‘house lot’ she was given the royal run around. “Every day I would be on my land because I am building my house at Lot 37. I realized that there are several people with this lot problem and we suspect something wrong. I would see him bringing different people and showing them lots.”
She eventually confronted the wayward member who gave her the assurance that everything was alright.
“Eventually when I realize what happening I went to the Central Police Station. The police say I got to get a Power of Attorney before I can do anything because it is in my sister’s name.”
Symone George of Lot 39 Stanleytown in New Amsterdam is representing her brother Stayon Samuels who resides in Barbados. On September 24, while on vacation in Guyana, he paid $300,000 for a plot.
But each time he tried to make an appointment with this member to see where the land is located the man kept putting him off.
“When my mother went to his home in Smythfield, his reputed wife said he was back in the interior during the weekend of October 10th. We were later told by the Chairman of the committee that he would be back in Berbice by October 12, to repay the money.
“He never showed up and we never heard from him again.”
“All my brother wants is his money back. We don’t want the land no more, is disputed land.”
Photocopies of receipts for land payment, legal and surveying fees for $300,000 each were given to the Kaieteur News for three other victims. They are dated February, May and August 2009 respectively.
According to them the number of persons who were fleeced is uncertain but new cases come up frequently as word of the scam spreads.
The original 84 members were also required to pay a monthly fee of $1,200 each for the development of the necessary infrastructure of the scheme and those payments began in 2005 as well. This sum too has vanished.
According to Mr. October, an account was opened at a commercial bank in New Amsterdam and all funds collected were to be deposited immediately.
“On October 10 we found out that this particular member was not banking the money he collected from members and the new people he sold to.
“Another senior member knew of it all the time and now he is now looking to resign but we tell him he cannot resign until he cleans up this mess.”
The members claimed even the ball field, which spans four plots, was sold by this member as well.
The man who has reportedly disappeared is also a member of a committee that was established in Tucber a few months ago. Police investigations are continuing.
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