Court of Appeal judges ruled that Italian law firm Giambrone Italian must compensate the approximately180 British investors after determining it was liable for failing to properly advise them about the potential risks of investing in an Italian resort development - a property scheme alleged to be a money laundering vehicle for the mafia and the IRA.

Luxury property deals

Giambrone has offices in its home country in Rome, Milan and Tunis and international bases in London and New York. The court heard how the firm had been approached by developers of two property projects in Calabria to act on behalf of prospective purchasers – the Jewel of the Sea and El Caribe.  Neither development met the terms of its contract in relation to when they were to be finished.

Seized and struck off

Italian authorities have since seized the Jewel of the Sea in connection with allegations of a £400 million money-laundering operation organised by the mafia and the IRA. The firms senior partner Gabrielle Giambrone has also been sanctioned and struck off in connection with the claims.

Seeking return of deposits

Deposits paid by the investors litigating ranged between £30,000 and £105,000 and they want it back. They are being represented by two firms - Penningtons Manches and Edwin Coe.