Eco Beach claim

We originally proposed a two-stage strategy. The first stage involved pursuing an out-of-court claim and was completed in May and June 2025. We are now at the second stage, which involves bringing criminal proceedings. Other legal options remain available, but we consider criminal proceedings the best fit for the facts and the most likely to deliver an effective and timely outcome.

We sent a formal notice to both PT Eco Beach and Carlos de Ory demanding repayment of the sums invested. A formal notice is optional before bringing criminal proceedings.

Out-of-court negotiations took place in May and June 2025 and ended without an agreement.

Any civil claim would be brought solely against the company. The claim could ask the court to declare the amounts due under the contract payable ahead of schedule and to declare unfair terms void. Although the company is based in Indonesia, we expect the Spanish courts to accept jurisdiction because the website was in Spanish, investors were recruited in Spain and payments were made into EU bank accounts. The main obstacles are serving the claim in Indonesia, which is outside the scope of the Hague Service Convention, and enforcing a Spanish judgment there, as Spain and Indonesia have no bilateral treaty on the recognition of judgments.

* To date, none of the claimants has pursued this route, and we recommend criminal proceedings. We include it here for information.

The criminal proceedings are directed against Carlos de Ory. They may also extend to the company and others involved if there is sufficient evidence to proceed against them.

A key advantage of this route is the ability to apply for orders to seize assets in Spain, elsewhere in Europe and internationally. It also allows us to seek international arrest warrants and offers more effective legal remedies.

In the criminal proceedings, we seek to establish both criminal liability, which may result in a prison sentence, a fine or both, and civil liability, which allows us to seek recovery of the money allegedly obtained through fraud. We can seek repayment of the original investment, interest and compensation for losses without making a prior claim. If Carlos de Ory takes refuge in Indonesia, options include requesting an INTERPOL Red Notice or pursuing extradition, even without a formal bilateral treaty.

The criminal complaint sets out the following points.

a) Income inconsistent with Carlos de Ory’s lifestyle. Happy Low Cost was presented as evidence of financial standing, but our analysis found little online engagement. Its Instagram account had 15,000–20,000 followers and one or two likes per post, and its website received around 300–500 visits a month. The business was owned by an Estonian company that closed in 2022. These findings are at odds with the picture of an established business presented to investors. The complaint cites frequent travel to Japan, Taipei, Doha and Nepal, as well as trips via Amsterdam, Paris and London, and stays at expensive hotels such as Nihi. This suggests that investor funds may have been used to cover personal expenses.

b) A network of companies and accounts spans Dubai, the UK, the US, Belgium and Indonesia. It includes a 36% stake held by PT Eco Beach City in a Dubai company, another company in the UK, accounts in the US, Brussels, London, Indonesia and Dubai, and cryptocurrency wallets. Funds were transferred out of the wallets as soon as they arrived and moved to other wallets, possibly linked to exchanges. This makes the funds harder to trace and moves assets across locations.

c) Validity of the contracts. The leasehold interest must also be registered with the land registry. To be valid in Indonesia, the contracts must be signed there and notarised. These formal requirements appear to have gone unmet, supporting the view that the documents provided may have no legal effect in practice.

d) Comparable cases

   a. Startup Island. The government cancelled the project in April 2022, but it continued to be advertised as active. Some refunds were reportedly issued in 2023 after direct requests.

   b. Golden City (Indonesia). The complaint cites a similar scheme involving plans for a large eco-city, widespread investor recruitment, no construction and formal complaints.

   c. Fyre Festival. This widely reported case illustrates a similar pattern of extravagant promises that went unfulfilled.

Spain and Indonesia have no extradition treaty. Extradition can still be pursued through diplomatic channels. If Carlos de Ory travels to the US or another country with an extradition treaty in force with Spain, he could be arrested immediately.

We will also assess whether he holds assets in the EU that could be seized more readily under EU directives on the mutual recognition of judicial decisions or located through European Investigation Orders. For assets outside the EU, we can request an INTERPOL Silver Notice. The first Silver Notice was issued in January 2025.

If you would like to proceed, send us your documents so we can assess whether your claim is viable. We will then send you an engagement letter to sign and let you know when payment is due. The criminal complaint has already been filed and is awaiting the court’s decision on whether to admit it. If you decide to join, we will file a written application on your behalf to join the complaint.

Once your claim is under way, we will keep you informed of any significant developments.

If you have any questions, email [email protected].