Levenstein case highlights difficulty of fraud prosecutions

The report says the time taken to secure the conviction underlines the near impossible task of prosecuting complex corporate fraud. Levenstein's case is the first to reach judgment out of a number of corporate prosecutions started early this decade, a list that includes Tigon CEO Gary Porritt and alleged tax offender Dave King. Levenstein himself was arrested in May 2003. The case has now been postponed to August for sentencing, while Levenstein remains under house arrest on R500 000 bail. Levenstein said after sentencing that he planned to apply for leave to appeal - implying further delays, the report noted. But Levenstein isn't the only one with much to lose after Pandya's judgment. Certain of Regal's non-executive directors now face a R170m legal claim, the report adds. Full Financial Mail report (subscription needed)

Another example surfaced yesterday (Wednesday) when two men were jailed for fraud following a prosecution that lasted nine years. Cornelius Abraham Lottering and Beatrix Johannes Lottering were jailed for their roles in a fraudulent foreign exchange scheme. According to a Beeld report, the sentencing followed their conviction in the Commercial Crimes Court in Pretoria on 248 charges of fraud and two charges of contravening the Banks Act. The men accepted investments amounting to more than R400m through their business, Apex Forex Trading, without conducting a sustainable business. The court found that they were never authorised to trade in foreign exchange, did not register as a bank that accepts deposits, and committed fraud. They were sentenced to 14 years and 11 years imprisonment respectively. Full Beeld report