Fidentia boss faces 25 years

01 September 2009 - 21:51 By ZWELI MOKGATA
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J ARTHUR Brown, allegedly the kingpin in the R1.4-billion Fidentia fraud, faces as much as 25 years in prison if convicted, legal experts said yesterday.

Steve Goodwin, a former director of Fidentia, an asset management company, was convicted yesterday on 36 counts of fraud, corruption and money laundering - and sentenced to a total of 50 years in prison.

Goodwin made a plea bargain with prosecutors following his arrest in the US last year and his extradition to South Africa.

According to the National Prosecuting Authority, Goodwin will serve a minimum of 10 years.

Tlali Tlali, the NPA spokesman, said Goodwin laundered R90-million in investor funds.

Graham Maddock, Fidentia's accountant, also made a plea bargain and, in February last year, was sentenced to seven years for his part in the theft and laundering of nearly R1.4-billion.

Fidentia was managing the funds on behalf of investors, including 46000 widows and orphans.

In May last year, Brown was reported to have been raped in the back of a police van on his way from the Cape Magistrate's Court to Pollsmoor prison.

In October, he was released on bail after more than a year in police custody.

Shortly afterwards, he made a bail application, supported by a psychiatrist who diagnosed him as suffering from stress and depression.

Last month, while out on bail, Brown appeared briefly in the Cape Regional Court in an attempt to have embezzlement and theft charges against him dropped.

Dines Gihwala, appointed curator of Fidentia, said: "He [Brown] lives like a lord here in Cape Town. He drives around in a R2-million car, lives in a multi-million rand house and has a new girlfriend," Gihwala said.

"He will definitely be prosecuted and the beneficiaries will be paid out. It won't be nearly as much as they were entitled to, but they'll get something.

"It's just unfortunate that they have to hear about this man's extravagant lifestyle and think we're not doing our job."

He said that many of the Fidentia problems could have been substantially minimised if the Financial Services Board had been allowed to investigate the company earlier.

Attorney Marius du Toit said Brown could be sentenced to as much as 20 to 25 years in prison if he were found guilty.

"If you are the kingpin, you get a heavier sentence, depending on

the case and the evidence that is available.

"If the offence is in excess of R500000, you face an automatic sentence of 15 years," he said.

"There's no way that he would get a lighter sentence [than Maddock and Goodwin], even if he plea-bargained."

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