Regulators fail to stop convicted directors
Publish date: 10 January 2008
Issue Number: 95
Diary: Legalbrief Forensic
Category: Risk Management
Certain convicted financial criminals have been able to slip under the radar screens of regulators and set up new businesses, says Moneyweb, which sites three examples of this happening.
In one of these cases, the CE of Rudco Finance Company, Rudi Visagie, was convicted of theft in 1995. He was barred from being a company director. Despite this, the Companies and Intellectual Property Registration Office somehow registered Visagie as a director of Rudco. Visagie also registered his company with the National Credit Regulator and was awaiting approval for his licence application. Rudco accepted installments worth R7m from about 1 800 clients without granting them loans. Many of these clients were already in deep financial distress before they approached Rudco as a possible solution to their woes. Rudco was recently liquidated by the Cape High Court. It remains uncertain whether clients will see their money again. Full Moneyweb report
