Investors sue ABN Amro for missing Palm Invest money
Tuesday 23 October 2012
State-owned bank ABN Amro is being sued by the official receiver dealing with Palm Invest, the property investment fund which collapsed when its directors were found to have spent all the money.
Danny Klomp and Remco Voortman were found guilty of fraud, money laundering and embezzlement in 2010. Using glossy television adverts, the two persuaded over 400 people to put a combined €31m into Palm Invest, the property development firm they set up to invest in Dubai.
Most of the cash went on funding the lavish lifestyle of the founders. The scam lasted from 2005 until 2008 when police stepped in. Palm Invest then went bankrupt with a cash deficit of around €21m.
The receiver says the money from Palm Invest went through ABN Amro bank accounts for years without the bank asking questions. Only when police became involved did the bank end its relationship with Klomp and Voortman.
He is now suing ABN Amro for the missing money on behalf of the investors, say press reports.