The largest teak investment fraud of the 21st century — more than 14,000 defrauded investors, over €300 million invested, and billions in expected returns that were never paid out.
Summary
From 1995 onwards, approximately 14,000 Dutch private individuals were approached to invest in teak plantations in Brazil. Via Goodwood Investments B.V. they bought plots with teak wood, with sky-high returns being promised via professional brochures and telephone acquisition. The total amount invested is over €300 million (some sources speak of €225 million, but including all products and reinvestments via Floresteca this amount runs higher).
The value of the teak stands was estimated in 2006 by the renowned independent agency SGS at approximately €2.4 billion. Floresteca itself published valuations of over €4 to €5 billion in 2010 and 2013. At present, however, the defendants speak of a value of no more than €0.5 billion. This enormous difference has never been adequately explained to the investors.
The involved companies and entities Goodwood Investments B.V. (GWI)
The Dutch sales company that sold teak plots and guarantee plans to investors. Goodwood used a large team of telephone salespeople who worked with call scripts and revenue tiers. The company offered both plots without guarantee and guarantee plans, where a guaranteed payout on a specific date was promised. Goodwood had no license from the AFM and was ultimately forced to stop sales. The company went bankrupt.
Goodwood Direct Marketing B.V. (GDM)
The marketing branch of Goodwood, involved in the promotion and sale of the investment products.
Amazon Teak Foundation (ATF)
After the bankruptcy of Goodwood, ATF took over the management of the participations. ATF is responsible for providing information to participants, administrative tasks, and overseeing the exploitation of the plantations. It is striking that ATF is managed by the same person who also led Goodwood, which raises serious questions about conflicts of interest and independence.
Floresteca S.A. (Brazil)
The Brazilian parent company that manages and exploits the teak plantations in the state of Mato Grosso near the city of Cuiabá. Floresteca is responsible for planting, maintaining, harvesting, and selling the teak wood. The company is now considered “technically bankrupt” — the total debt is higher than the equity.
Floresteca B.V. (Netherlands)
The Dutch sales branch that sold bonds, Interest Certificates, Savings Interest Certificates, Annual Interest Certificates, and High Yield Notes to investors. Because these products were offered as bonds starting at €50,000, Floresteca B.V. did not need a license from the AFM — a deliberate structure to fall outside financial supervision. Floresteca B.V. has applied for a suspension of payment.
Foundation Tectona / SATT
Foundation Administration and Trust Office Tectona is responsible for paying out harvest proceeds to investors. Tectona must request the proceeds from Floresteca S.A. and pay them out to the entitled participants. However, payouts have been suspended for years because Floresteca S.A. claims to have insufficient liquid assets.
What exactly went wrong?
The core of the problem is that investors were approached via telephone acquisition with promising brochures presenting sky-high returns. The money was invested and immediately funneled to Brazil, where the investor had absolutely no control over what happened to their investment. The AFM had no jurisdiction over the foreign plantation exploitation.
The promised returns were never realized. Harvest proceeds were much lower than predicted, or failed to materialize altogether. Costs for maintenance and harvesting turned out to be much higher than presented to investors. There is a fundamental lack of transparency: BFRG cannot deduce from the reports what agreements the parties made with each other, how financial flows developed, what the actual harvest proceeds were, and why the value of the plantations dropped from billions to hundreds of millions.
Extensive timeline
1995-2006: Goodwood Investments sells teak plots and guarantee plans to approximately 14,000 Dutch investors via telephone acquisition. Total investment: €225-300+ million.
2006: The AFM and DNB force Goodwood to stop selling guarantee plans due to the lack of a license and the violation of laws and regulations. The best salespeople are transferred to Floresteca B.V. Netherlands, which sells bond products that fall just outside AFM supervision.
2006-2008: Goodwood investors are approached by former employees to exchange their participations for Floresteca bonds, often against substantial additional payments.
2008: After the bankruptcy of Goodwood Investments, ATF takes over management. Mr. Eibergen Santhagens, originally appointed as interim manager, dismisses the sitting directors and personally holds the director position at five entities simultaneously: Goodwood, ATF, Foundation ATF, Tectona, and Floresteca-related functions.
2010-2015: Floresteca B.V. Netherlands struggles with severe payment problems. Over €18 million in payment arrears to investors. Bureau Fraude Recht & Geldzaken builds files and conducts forensic investigation.
November 2015: BFRG files for preliminary relief proceedings at the Amsterdam District Court against Floresteca B.V., ATF, and Tectona. The final harvest on the plantations has started, but investors receive no information about the proceeds. BFRG demands access to the plantations, an audit, and answers to questions.
July 2018: Foundation Schadeclaimafwikkeling BFRG is formally established for claiming and settling damage claims.
2019: Floresteca B.V. Netherlands applies for a suspension of payment and offers an agreement to creditors. 96% vote in favor. The Amsterdam District Court homologates the agreement. BFRG files an appeal on behalf of 22 creditors.
November 2019: The appeal is heard by the Amsterdam Court of Appeal.
2020-present: The requesting of harvest proceeds from Floresteca S.A. is suspended due to insufficient liquidity. There is no concrete date for the resumption of payouts.
The role of BFRG
Bureau Fraude Recht & Geldzaken has spared no expense or effort to make it legally possible to recover the invested capital. Through highly thorough forensic investigation — conducted by its own investigators and international experts — the claim against the founders and directors has been legally substantiated and made possible. Our lawyers believe that this is a strong case with a good chance of success.
BFRG is handling more than 1,700 individual files, making it one of the largest claiming parties in this case. We are not just a foundation that bundles claims — we are the party that actively conducts investigations, gathers evidence, legally challenges the opposing party, and vigorously defends the interests of defrauded investors.
Attention!
This is the last opportunity for the time being to register as a defrauded claimant for the damage claim procedure to recover your damages via this upcoming legal procedure.
Bureau Fraude Recht & Geldzaken B.V. receives the registration forms from our Foundation and will contact you by telephone to discuss all the ins and outs with you. Register now while you still can!
