Plett businessman forfeits R13million to the state
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A Dutch national with permanent residency in the country has been convicted and sentenced for fraud in the Bellville Commercial Crimes Court.
Martin Lennard Korver, 59, from Plettenberg Bay, was convicted of fraud in the amount of R6.8 million and theft in the amount of R4 million. The total amount of loss was R10.9 million.
He entered into a plea and sentencing agreement with the State, where he confessed to his crimes.
The complainants in his case were Gustav Schaefer and Jan Eberhard Schliemann, directors of Cobow (Pty) Ltd and Korevest Investments Group (Pty) Ltd, based in Somerset West.
Korevest Investments Group (Pty) Ltd is a 100% shareholder in Cobow (Pty) Ltd, and the latter conducts the business of a guesthouse in Somerset West. The court heard Korver was a director of the two companies until his resignation on August 16, 2016. He and the complainants were in control of both companies' financial and banking affairs.
Korver was also the sole director of Korevest Leisure Group B.V., based in the Netherlands. Korevest Leisure is a 47% shareholder in Korevest Investments Group (Pty) Ltd, while the Schliemann Family trust holds 28% and the Finserf Foundation 25%.
In November 2013, Korver opened bank accounts with Investec South Africa on behalf of the two companies. The bank accounts were linked to his personal bank account without the knowledge and/or consent of the complainants, as this was done before their involvement.
During May and June 2015, he opened a call deposit account and a loan account on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius.
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He claimed the complainants were aware of the call deposit account. He entered into a loan agreement on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius and secured €442 602.94, which equates to R6.8million between the two companies and the bank. Korver used an immovable property (guest house in Somerset West) as collateral to secure the loan from Investec Bank of Mauritius.
Arguing in aggravation of sentence, Senior State Advocate Denzyl Combrink said the accused was in a position of trust which he abused to his financial benefit. Korevest Investments Group (Pty) Ltd incurred excessive expenses relating to loans and legal fees due to its illegal actions. These include R1.5 million, the company had to pay to Investec Bank of Mauritius to settle the loan the accused took out and failed to repay. The company also paid R3 million in legal expenses, due to the various civil litigations between the parties. One of the complainants had to lend Korevest Investments Group (Pty) Ltd R1.5m to ensure that the business stayed afloat. Korevest Investments Group (Pty) Ltd incurred a deficit relating to its tax liabilities with the South African Revenue Services (Sars).
The court sentenced Korver to 10 years direct imprisonment for each count of which both were wholly suspended for five years on condition he is not convicted of fraud, theft, and/or any offence of which dishonesty is an element during the period of suspension.
The court further made a confiscation order in the amount of R13.4million following the Asset Forfeiture Unit's investigation of his assets.
Korver was also sentenced to 36 months of correctional supervision, which includes house arrest for 24 hours per day. He will be allowed to leave home between 7am and 7pm on weekdays for work. The court sentenced him to community service for 16 hours per month for the duration of his sentence. It ordered him to attend rehabilitation programmes (including a stop crime or similar programme) as determined at re-assessment by the social worker at the community correction office, to substantiate the goals of correctional supervision.
The Commissioner of the Department of Correctional Services in George will determine the reasonable content and length, times, and places of such programmes. The department will recover the costs of the programmes from the accused.
The court also allowed for Korver to attend a spiritual growth service, including at a church or mosque, or have free time on Saturdays from 12pm until 4pm, and Sundays from 8am until 12pm.
Korver is not allowed to leave the magisterial district of his residence or work without the permission of his Correctional Supervision Officer and is prohibited from using alcohol or drugs other than those prescribed by a medical practitioner. He must obtain written permission before he changes his residential or work address.
The court further ordered that as part of Korver's sentence he will ensure that the 47% shareholding held by Korevest Leisure Group BV in Korevest Investments Group (Pty) Ltd is transferred to the Finserf Foundation, upon presentation to him of the necessary documents by the complainants. He also accedes to the confiscation order in the amount of R1.2 million, which will be paid as a lump sum within five court days of the agreement being made an order of the court. The money will be transferred from the accused' attorney's trust bank account to the complainant's nominated bank account.
Provincial NPA spokesperson Eric Ntabazalila welcomed the sentence.
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