real estate

Investor faces scrutiny over his past, present

Convicted of a kidnapping 23 years ago, a Dutch man has come to Panama for a fresh start.

Gabriel Rodríguez/la prensa

Reformed:Martin Erkamps said he has learned from his mistakes of the past. But unhappy investors want him to prove that in court.992947

Martin Erkamps has come to Panama with a past that he is trying to escape. But that may prove impossible for the Dutchman.

Erkamps was sentenced to eight years in prison for the abduction of beer magnate Freddy Heineken in 1983. He served his sentence and moved to Panama in 2007 to work in the real estate business.

But now he is facing legal troubles in Panama.

Erkamps is being sued by a group of investors who claim that they were defrauded by him after buying lots in a project that he is promoting, M&M Garden View in the district of Las Tablas.

Mirna Craig, the leader of the group, claims that Erkamps, working through the company Construcciones y Edificaciones Organizadas, S.A. (Ceosa), sold them four lots that were not properly titled in Las Tablas.

"We are six people that were treated badly by Mr. Erkamps," Craig told La Prensa, who added that the group is assessing its options for recovering its money.

Erkamps said that Craig has not understood that the titles are being processed and that’s why his company has been unable to deliver them.

The director of Ceosa, Armando Castro, noted that the delay is due to the requirement of an environmental impact assessment.

"This was resolved on Nov. 12, and we are proceeding to get the titles to each buyer. We will try to get the first to Craig to show that this is not a scam," said Castro.

The project has also faced legal problems from the family that sold the land to Erkamps. A court will soon decide whether or not the sale was legal.

Despite this, Erkamps has announced that within 10 days he expects to begin construction of the first phase of the project, which will have an initial investment of $50 million.

Although Erkamps is moving forward, the Dirección de Migración said the Dutch investor’s visa application is still pending. Migración Director Tayra Barsallo reported that Erkamps’s entire history will be considered by the Consejo de Seguridad del Estado in deciding whether to grant him a visa.

Barsallo also noted that it is verifying the source of funds that Erkamps is investing in Panama. The United States Consulate has also requested information his operations.

Erkamps said he decided to settle in Las Tablas because "This is the country of the future, here is where there are opportunities to grow."

The Asociación de Corredores de Bienes Raíces (Acobir) said that the country has struggled with fraudulent activities in the real estate industry.

Iván Carlucci, sales manager of Natasha Bienes Raíces, said consumers need to be aware of whom they are dealing with."The wisest thing to do is to work with licensed promoters," Carlucci said.

He added that the majority of realtors operating in Panama are reputable, and that problems are isloated.