FORMER Fidentia boss J Arthur Brown was found guilty on two counts of fraud by the Western Cape High Court yesterday.
“We are satisfied the admissions are sufficient for conviction,” Judge Anton Veldhuizen said.
The charges related to dealings with the Transport Education and Training Authority and the Mantadia Asset Trust Company (Matco).
Brown was acquitted on seven other charges of corruption, money-laundering, theft and fraud.
Dressed in a smart grey suit, he sat quietly listening to proceedings and seemed tired.
His bail of R1-million was extended and he was told to return to court on April 29 for sentencing arguments.
Outside court, prosecutor Jannie van Vuuren said he was relieved the trial was almost over and thanked the police and the Financial Services Board for their support.
He also praised Brown for his willingness to find a resolution in the matter.
“The accused made a huge contribution to the matter by negotiating and being willing to settle the matter in the way we settled it.”
Brown handed in an admissions document last week in relation to the two fraud charges he was convicted on, but the court had misgivings about the strengths of the admissions. He then handed in an altered admissions document which the court accepted on Wednesday.
He initially admitted Fidentia did not have enough liquid cash at the time of purchase, but said it had enough assets in the form of negotiable instruments.
He also admitted Fidentia had misrepresented itself by saying the full purchase price for Matco would be paid before it took control.
The admission handed in on Wednesday included the terms of the purchase agreement and made it clear the purchaser had to have “immediately available funds”.
“Fidentia and I misrepresented Fidentia was able to do so and induced the shareholders of Matco to enter into the agreement and sell their shares to Fidentia,” Brown said in the altered document.
The minimum sentence for fraud is 15 years in jail, unless extenuating circumstances can be proven.
Ex-Fidentia head guilty of fraud
“We are satisfied the admissions are sufficient for conviction,” Judge Anton Veldhuizen said.
The charges related to dealings with the Transport Education and Training Authority and the Mantadia Asset Trust Company (Matco).
Brown was acquitted on seven other charges of corruption, money-laundering, theft and fraud.
Dressed in a smart grey suit, he sat quietly listening to proceedings and seemed tired.
His bail of R1-million was extended and he was told to return to court on April 29 for sentencing arguments.
Outside court, prosecutor Jannie van Vuuren said he was relieved the trial was almost over and thanked the police and the Financial Services Board for their support.
He also praised Brown for his willingness to find a resolution in the matter.
“The accused made a huge contribution to the matter by negotiating and being willing to settle the matter in the way we settled it.”
Brown handed in an admissions document last week in relation to the two fraud charges he was convicted on, but the court had misgivings about the strengths of the admissions. He then handed in an altered admissions document which the court accepted on Wednesday.
He initially admitted Fidentia did not have enough liquid cash at the time of purchase, but said it had enough assets in the form of negotiable instruments.
He also admitted Fidentia had misrepresented itself by saying the full purchase price for Matco would be paid before it took control.
The admission handed in on Wednesday included the terms of the purchase agreement and made it clear the purchaser had to have “immediately available funds”.
“Fidentia and I misrepresented Fidentia was able to do so and induced the shareholders of Matco to enter into the agreement and sell their shares to Fidentia,” Brown said in the altered document.
The minimum sentence for fraud is 15 years in jail, unless extenuating circumstances can be proven.
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