Fidentia's curators have been probing a deal involving "a significant entity in the financial-services industry", according to a report made public on Monday.
In the report, dated March 10, curators Dines Gihwala and George Papadakis detailed how they had recovered, or had firm agreements on, about R160-million of Fidentia cash. They also listed a number of assets that still had to be sold, including the Sante Winelands Hotel and Spa at Franschoek, and Fidentia's former headquarters in Cape Town's Century City, for which they are seeking more than R53-million. "There is also a transaction involving a significant entity in the financial-services industry, which may be liable to the curators in a transaction that appear[s] to be a sham," they said. "Inasmuch as the curators are still investigating this claim, they are reluctant to disclose the identity of such entity to ensure no reputational damage is suffered by such entity, just in case it turns out that the information at the disposal of the curators is unreliable and/or inaccurate."
Former Fidentia boss J Arthur Brown is currently facing criminal charges related to the Fidentia debacle. One-time Fidentia accountant/financial director Graham Maddock is behind bars after entering a plea agreement with the Scorpions, which involves testifying against Brown. The curators said in their report that Maddock had undertaken in the plea agreement to pay them R6,3-million. Of this they had so far received R2,8-million, from the sale of the Maddocks' Constantia family home.
An associate of Brown's, Louis Koen, had agreed to repay R10,9-million, and had so far handed over R3,2-million of this. Johan Linde, who received R5,1-million as purported dividend and restraint of trade agreements, had paid over the entire amount to the curators. These amounts make up part of the R160-million total. The curators said summonses for similar payments, totalling more than R20-million, had been issued against Johan de Jongh, Hjalmar Mulder and Zacharias Brown.
Also unresolved were claims of R8,5-million against former Fidentia director Rudi Bam, R24,7-million against Brown and his wife, Susan, and R77-million against businesses formerly controlled by broker Steve Goodwin. Goodwin was jailed two months ago, in another Scorpions plea agreement, after being apprehended in the United States. Gihwala has previously said that the shortfall on Fidentia's books could be as much as a billion rand.
The publication of the curators' report, available on the Financial Services Board's website, follows an order made by the Cape High Court last week.
Source: Mail & Guardina
Showing posts with label Steve Goodwin. Show all posts
Showing posts with label Steve Goodwin. Show all posts
Monday, June 22, 2009
Monday, April 20, 2009
Fidentia's Goodwin goes to jail
A key figure in the Fidentia saga, Steve Goodwin, has been convicted of fraud and corruption, and of money laundering involving about R93m. In terms of a plea agreement endorsed by the Cape High Court on Monday morning, he has been sentenced to an effective 10 years in jail. Part of the deal is that he will testify in criminal proceedings against his former associate, ex-Fidentia boss Arthur Brown.
Goodwin, a broker, fled to Australia in early 2007, shortly before the Scorpions began probing the Fidentia affair. He was arrested by the FBI at Los Angeles airport in the United States in April last year, and launched a protracted legal challenge - which he lost - to the extradition agreement between the US and South Africa. When he appeared before acting Cape judge president Jeanette Traverso on Monday morning, prosecutor Jannie van Vuuren said Goodwin had agreed to return voluntarily, and had waived his rights in terms of formal extradition proceedings.
The bespectacled Goodwin, sporting a bushy black beard and wearing a white shirt with no tie or jacket, was brought into the courtroom in handcuffs. He answered "I do, your honour," when Traverso asked him if he understood the terms of the 12-page agreement. She sentenced him to 20 years jail on one count of fraud, of which 10 years was conditionally suspended for five years.
On two counts of corruption, he was sentenced to one jail term of 15 years, of which five were suspended. On 33 counts of money-laundering, he was sentenced to one term of 15 years, of which seven was suspended. Traverso said the corruption and laundering sentences would run concurrently with the fraud. The 12 months he had spent in a US detention centre since April 7 would be subtracted from the jail time, she said. One of the conditions of the suspensions is that he testify against Brown, who is facing a range of fraud and theft charges.
According to the agreement, Goodwin played a key role in getting the Transport Sector Education and Training Authority (Teta) to transfer investments to Fidentia's control. To do this, he paid former Teta chief executive Piet Bothma bribes totalling R4.6m, which were disguised first as commission payments, then as a sale of shares in a shell company that had no assets. Although the plea agreement does not mention the amount of the investments, according to other prosecution documents it involved promissory notes worth just over R100m, which Fidentia then sold off to pay personal and company expenses and creditors. According to the agreement, Goodwin himself got about R32m of the Teta funds as his own share of the loot. To disguise what had happened, he complied fictitious monthly statements for the benefit of the Teta board, showing what the funds would have been at prevailing interest rates. The money laundering charge involved the flow of this cash through bank accounts controlled by Goodwin or companies he owned,including Worthytrade and Intaband. "To facilitate the aforementioned theft, and corrupt payments, devices were created and measures were taken to disguise the origin, nature and destination of monies," the agreement read.
It said though Goodwin had not been employed by Brown's Fidentia Asset Management, or privy to its internal arrangements, he had suspected a theft had taken place. "He was not aware at the time of the exact nature, quantum and source of the funds that are the subject matter of the theft. "He accepts that an amount of approximately R93m was laundered by him." In terms of the agreement, Goodwin would co-operate fully with prosecutors on the Fidentia investigation, assist Fidentia's curators "in their restitution efforts", and assist investigators in tracing the missing funds.
National Prosecuting Authority spokesman Tlali Tlali said outside the court afterwards that the state was "very pleased" with the outcome of the matter. "We are talking about a situation that involves acts of criminality that hit the hardest on the poorest of the poor," he said. Investigators were still pursuing "other legs of the investigation". "Hopefully soon we'll still be in court again, because we have other outstanding investigations that have to be concluded in terms of two other suspects."
Former Fidentia director and accountant Graham Maddock last year began a seven year jail sentence after pleading guilty to theft and money laundering. Prosecutors have also charged Teta's Bothma and broker Jacobus Theart. Though he is challenging the charges in the Cape High Court, Brown has been involved in plea bargain talks.
Source: News 24
Goodwin, a broker, fled to Australia in early 2007, shortly before the Scorpions began probing the Fidentia affair. He was arrested by the FBI at Los Angeles airport in the United States in April last year, and launched a protracted legal challenge - which he lost - to the extradition agreement between the US and South Africa. When he appeared before acting Cape judge president Jeanette Traverso on Monday morning, prosecutor Jannie van Vuuren said Goodwin had agreed to return voluntarily, and had waived his rights in terms of formal extradition proceedings.
The bespectacled Goodwin, sporting a bushy black beard and wearing a white shirt with no tie or jacket, was brought into the courtroom in handcuffs. He answered "I do, your honour," when Traverso asked him if he understood the terms of the 12-page agreement. She sentenced him to 20 years jail on one count of fraud, of which 10 years was conditionally suspended for five years.
On two counts of corruption, he was sentenced to one jail term of 15 years, of which five were suspended. On 33 counts of money-laundering, he was sentenced to one term of 15 years, of which seven was suspended. Traverso said the corruption and laundering sentences would run concurrently with the fraud. The 12 months he had spent in a US detention centre since April 7 would be subtracted from the jail time, she said. One of the conditions of the suspensions is that he testify against Brown, who is facing a range of fraud and theft charges.
According to the agreement, Goodwin played a key role in getting the Transport Sector Education and Training Authority (Teta) to transfer investments to Fidentia's control. To do this, he paid former Teta chief executive Piet Bothma bribes totalling R4.6m, which were disguised first as commission payments, then as a sale of shares in a shell company that had no assets. Although the plea agreement does not mention the amount of the investments, according to other prosecution documents it involved promissory notes worth just over R100m, which Fidentia then sold off to pay personal and company expenses and creditors. According to the agreement, Goodwin himself got about R32m of the Teta funds as his own share of the loot. To disguise what had happened, he complied fictitious monthly statements for the benefit of the Teta board, showing what the funds would have been at prevailing interest rates. The money laundering charge involved the flow of this cash through bank accounts controlled by Goodwin or companies he owned,including Worthytrade and Intaband. "To facilitate the aforementioned theft, and corrupt payments, devices were created and measures were taken to disguise the origin, nature and destination of monies," the agreement read.
It said though Goodwin had not been employed by Brown's Fidentia Asset Management, or privy to its internal arrangements, he had suspected a theft had taken place. "He was not aware at the time of the exact nature, quantum and source of the funds that are the subject matter of the theft. "He accepts that an amount of approximately R93m was laundered by him." In terms of the agreement, Goodwin would co-operate fully with prosecutors on the Fidentia investigation, assist Fidentia's curators "in their restitution efforts", and assist investigators in tracing the missing funds.
National Prosecuting Authority spokesman Tlali Tlali said outside the court afterwards that the state was "very pleased" with the outcome of the matter. "We are talking about a situation that involves acts of criminality that hit the hardest on the poorest of the poor," he said. Investigators were still pursuing "other legs of the investigation". "Hopefully soon we'll still be in court again, because we have other outstanding investigations that have to be concluded in terms of two other suspects."
Former Fidentia director and accountant Graham Maddock last year began a seven year jail sentence after pleading guilty to theft and money laundering. Prosecutors have also charged Teta's Bothma and broker Jacobus Theart. Though he is challenging the charges in the Cape High Court, Brown has been involved in plea bargain talks.
Source: News 24
Friday, April 4, 2008
FBI nabs Fidentia fugitive
One of the alleged masterminds in the Fidentia scandal was arrested by the FBI in the United States, the National Prosecuting Authority said on Tuesday. Spokesperson Tlali Tlali said Steven William Goodwin was arrested following a request by the Directorate of Special Operations, better known as the Scorpions.
According to the NPA, Goodwin was detained on Saturday at Los Angeles airport by US authorities and the Customs and Immigration Department. "Their intervention followed an alert issued by Interpol that Goodwin was en route to the US and that a warrant for his arrest had been issued in South Africa in July 2007. "Goodwin left South Africa for Australia in early February 2007, following the appointment of a curator to manage the Fidentia group of companies and before the Scorpions investigation was authorised in February 2007," said Tlali.
Goodwin was described as the "real founder" of Fidentia and has been named repeatedly in a draft indictment against Fidentia boss J Arthur Brown. He left South Africa just days before Brown was arrested in March last year. The draft charge sheet says that at the time Goodwin owned and was MD of a company named Worthytrade 185. Acting as a broker, he initiated the contact that resulted in the Transport Education Training Authority (Teta) entrusting promissory notes worth R100,3-million to Maddock Incorporated in April 2003.
The NPA has 60 days within which to apply for Goodwin's extradition and is preparing papers to launch such an application, said Tlali. "The Scorpions are currently working with the US Department of Justice to ensure the matter is resolved speedily and successfully. Once on South African soil, Goodwin will face charges of theft, fraud and corruption running into millions," he said. The charge sheet says Brown acted "in the execution of a common purpose" with Goodwin in providing a R6-million bribe to ensure that the Teta board made the investment with FAM. Goodwin is also named repeatedly in the section of the charge sheet that deals with money laundering.
Brown will go on trial in September on fraud and theft charges. He is out on R1-million bail.
The financial director of Fidentia, Graham Maddock, was effectively jailed for seven years on 54 counts involving fraud, theft, money laundering, contraventions of the Financial Intelligence Centre Act and the reckless or fraudulent conduct of business.
Source: Mail & Guardian
According to the NPA, Goodwin was detained on Saturday at Los Angeles airport by US authorities and the Customs and Immigration Department. "Their intervention followed an alert issued by Interpol that Goodwin was en route to the US and that a warrant for his arrest had been issued in South Africa in July 2007. "Goodwin left South Africa for Australia in early February 2007, following the appointment of a curator to manage the Fidentia group of companies and before the Scorpions investigation was authorised in February 2007," said Tlali.
Goodwin was described as the "real founder" of Fidentia and has been named repeatedly in a draft indictment against Fidentia boss J Arthur Brown. He left South Africa just days before Brown was arrested in March last year. The draft charge sheet says that at the time Goodwin owned and was MD of a company named Worthytrade 185. Acting as a broker, he initiated the contact that resulted in the Transport Education Training Authority (Teta) entrusting promissory notes worth R100,3-million to Maddock Incorporated in April 2003.
The NPA has 60 days within which to apply for Goodwin's extradition and is preparing papers to launch such an application, said Tlali. "The Scorpions are currently working with the US Department of Justice to ensure the matter is resolved speedily and successfully. Once on South African soil, Goodwin will face charges of theft, fraud and corruption running into millions," he said. The charge sheet says Brown acted "in the execution of a common purpose" with Goodwin in providing a R6-million bribe to ensure that the Teta board made the investment with FAM. Goodwin is also named repeatedly in the section of the charge sheet that deals with money laundering.
Brown will go on trial in September on fraud and theft charges. He is out on R1-million bail.
The financial director of Fidentia, Graham Maddock, was effectively jailed for seven years on 54 counts involving fraud, theft, money laundering, contraventions of the Financial Intelligence Centre Act and the reckless or fraudulent conduct of business.
Source: Mail & Guardian
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