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Author Topic: The San Jose: another case of defrauding investors  (Read 187 times)
Description: American treasure hunters disappears with the money
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Sovereign
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« on: July 06, 2007, 12:56:41 PM »


The shipwreck of the San Jose is thought to have $2 billion worth of gold, silver and emeralds in what may be the world�s largest sunken treasure.

Here is yet another - oh-so-typical - story of secrecy, fraud and deceit, surrounding marine salvage. Do investors ever learn?

Colombia Fights U.S. Diver for Treasure:
In 1994, Colombia hired treasure hunter Tommy Thompson to verify Sea Search's coordinates. Thompson, an American who has since disappeared allegedly with millions in investors' loot from a previous deep-sea find, turned up nothing.

'Holy grail' of sunken treasure in dispute
In 1982, Sea Search announced to the world it had found the San Jose's resting place 700 feet below the water's surface, a few miles from the historic Caribbean port of Cartagena. Under well-established maritime law, whoever locates a shipwreck gets the rights to recover it in a kind of finders-keepers arrangement meant to offset the huge costs of speculative exploration.

Harbeston claims he and a group of 100 U.S. investors � among them the late actor Michael Landon and the late convicted Nixon White House adviser John Ehrlichman � invested more than $12 million since a deal was signed with Colombia in 1979 giving Sea Search exclusive rights to search for the San Jose and 50 percent of whatever they find.

All that changed in 1984, when then-Colombian President Belisario Betancur signed a decree reducing Sea Search's share from 50 percent to a 5 percent �finder's fee.�

Current President Alvaro Uribe's office declined to discuss the impending court decision, which is expected by Wednesday.

During the years successive governments have argued that Colombia's maritime agency never had the authority to award exploration contracts to Sea Search because the wreck is part of the country's cultural patrimony.

The government also may be motivated by dollar signs. Harbeston said he believes that if sold skillfully to collectors and museums, the San Jose's treasure could fetch as much $10 billion � more than one-third of Colombia's foreign debt.

The real value is impossible to calculate because the ship's manifests have disappeared. The San Jose is known to have been part of Spain's only royal convoy to try to bring colonial bullion home to King Philip V during the War of Spanish Succession with England from 1701 to 1714.


...
Besides Sea Search, rival salvage companies and the Colombian government, Spain also has actively defended its sovereign rights over sunken ships that flew its flag. Last week, Spain filed claims in a U.S. federal court seeking up to $500 million in colonial treasure a Florida firm estimates it found recently in a shipwreck in the Atlantic Ocean.

Archaeologists also have voiced concern, pointing to a 2001 UNESCO convention � backed by Spain but not signed by Colombia or the United States � that outlaws commercial exploitation of sunken cultural heritage.

�People forget the San Jose is an underwater grave of 600 men,� said Carla Rahn Phillips, a University of Minnesota historian and author of the new book �The Treasure of the San Jose.� �The wreck deserves to be treated with respect, and most salvors I know only pay lip service to its historical importance.�

The Colombian court ruling also will affect other commercial salvage companies eager to dive for more than 1,000 galleons and merchant ships believed to have sunk along Colombia's coral reefs during more than three centuries of colonial rule. Almost none has been recovered because of the legal limbo in the San Jose case.
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Sovereign
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« Reply #1 on: July 06, 2007, 01:04:46 PM »


Cartagna

The history:

SAN JOSE -- 1708

        By 1708, the War of Spanish Succession had the English and the Dutch attacking Spanish galleons wherever they could be found. Their success at Vigo Bay in 1702 had whetted the appetite for Spanish gold, and now a fleet of four English warships cruised the waters off Cartagena and then to Havana. Rumor was that the galleons were heavily laden with gold.

       The South Seas Armada, or Conde de Casa Alegre's Armada, was under the command of General Don Joseph de Santillan. The armada consisted of seventeen vessels, three of which were major galleons. The capitana was the San Jose, carrying 64 bronze cannon and almost 700 men aboard. In her hold she had almost seven million pesos in registered gold; contraband treasure would easily have doubled that amount. The almiranta was the San Jaochin [sic], with 64 bronze cannon and between 400 and 500 men aboard. Admiral Villanueva was in command.

       Then there was the Vice Admiral, the Conde de Vega Floride, on board the Santa Cruz, with 44 bronze cannon and 300 men. A fourth large vessel of 700 tons, the urca, Nietto [sic], under Captain Don Joseph Francis and with 40 bronze cannon and 140 men, rounded out the complement of "big guns". The other ships of the armada were mostly small merchantmen; a French frigate, Le St. Esprit of thirty cannon; and the Spanish patache, Nuestra Senora del Carmen.

...

Isla de Bar�

       By June 7th they had reached Isla de Baru, a small group of islands about sixteen nautical miles southwest of Boca Chica, the entrance to the harbor at Cartagena. The winds were from the east-northeast, as were the currents, and the armada was unable to tack around the islands. They spent the night just to the south of the islands with luffed sails, and by morning they again attempted to sail around the islands. Again, the winds were against them, and at 3:00 p.m. the afternoon of the 8th they spotted the first three sails, and then a fourth on the horizon. It was soon determined that the sails were English and that they had the wind on their sterns, making straight for the armada.

        Around 5:00 p.m. Villanueva ordered his armada into line of battle facing to the northwest, with about one-half mile between his major galleons. The gobierno, or the Santa Cruz, was in the van. In the center and slightly to the windward was the capitana, San Jose. And bringing up the rear was the almiranta, or San Jaochin. the patache, Carmen, was two ship lengths behind the capitana, and the urca, Nietto, was close behind the patache.

       The English warships under Admiral Wager included his own 72-cannon command ship H.M.S. Expedition, the Kingston with 64 cannon, and the Portland with 58 cannon. The fourth vessel was a fire ship, the Vulture. At 5:30 p.m. the Kingston came alongside the almiranta and gave her a broadside. The almiranta responded, and the battle was on. At 6:00 p.m. the quartermaster on Admiral Wager's warship took a bearing on Isla de Siruelo (Isla del Rosario), which has a high knoll on the southwest tip. He estimated the distance at two leagues (six miles), the bearing 101.25 degrees (east by south).

       Shortly after, Wager brought his ship alongside within pistol shot of the capitana and, keeping his ship to windward, he began exchanging broadsides with the San Jose. There was some confusion aboard San Jose, with seamen stumbling over each other. But it was a fierce fight that lasted for one and one-half hours. Then, as described by Captain Arauz on the Spanish patache, "a great fire, which seemed to come from within the capitana. It rose to the topmast and topsails, giving the appearance of a volcanic eruption. Accompanying this was a great pall of smoke that lasted for fifteen minutes. When it cleared, the capitana was gone!"

       Admiral Wager described the action, "It was just sunset when I engaged the Admiral [San Jose], and in about an hour and a half, it being them quite dark, the Admiral blew up. I being than along his side, not a half pistol's shot from him, so that the heat of the blast came very hot upon us, and several splinters of plank and timber came on board us afire. We soon threw them overboard. I believe the ship's side blew our, for she caused a sea that came in our ports. She immediately sank with all her riches."
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Bart
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« Reply #2 on: July 06, 2007, 05:31:58 PM »

" The Colombian court ruling also will affect other commercial salvage companies eager to dive for more than 1,000 galleons and merchant ships believed to have sunk along Colombia's coral reefs during more than three centuries of colonial rule. Almost none has been recovered because of the legal limbo in the San Jose case."

   If a govt can set all sorts of bureaucracies in motion, you would think they would do the same as part of the cultural heritage department, and simply make these recoveries themselves, for the benefit of their own country, or at least knock down some of their debt.

   It isn't economical to hire salvors and get ripped off. And what is the point if a govt contracts with a salvor and reneges on the deal later anyway? We hear about the billions in value of the cargos of many of these ships, and we know that some of these recovered items will be marketed, that much is a given. It isn't all going to end up in museums. Who would want to visit a few dozen museums just to see tons and tons of silver and gold?

   There are problems with any position, but it seems there would be far fewer problems than exist currently, with such a system.

Bart
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Learning is a treasure which accompanies its owner everywhere.
Solomon
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« Reply #3 on: July 06, 2007, 08:40:00 PM »

I would not expect the the governments of many nations to stick to an agreement with a successful treasure hunter. One should be very selective in which nation to work with.

In this particular case, as I understand it, no shipwreck has been identified and no artefacts recovered, so this is a story of greed running away with itself.

Solomon
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Tags: San Jose salvage fraud Cartagena Columbia  War of Spanish Succession 
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