More on the liquidators scam

Februarie 23, 2012 in Sonder kategorie

Reveived from the Johan Joubert foundation:


This could turn into the biggest financial scandal in South Africa’s history. Following my report on Monday, “Liquidator Scandal”, emails have been streaming in from people who feel they’ve been swindled by the auction houses. I even received an email from an accountant who previously worked at an auction house, and who confirmed that the newspaper reports are true and that these fraudulent practices are standard practice.


I’ve also had emails from members who bought at these auctions and are now very concerned – and I think there may be good reason for serious concern! If the allegations of fraud against Auction Alliance are true, it will have far-reaching consequences, because apparently it’s a serpent’s nest, involving many roleplayers. The papers say that banking officials were bribed to repossess properties from people who were experiencing financial difficulties, and then these properties were passed on to the auction houses to be sold. Apparently other auction houses were also implicated in Auction Alliance’s alleged fraud, and they all shared in the proceeds of the alleged crimes.


Liquidators, like typical vultures, were also implicated by the reports – because just like in nature, where there are financial carcasses, there are financial vultures. Many attorneys and valuators are also involved, of course.


Although the current allegations are only allegations – and we also know how the papers can take things out of context – the court has already found that Auction Alliance is intentionally misleading people. On 3 August 2011, Acting Judge LP Halgryn handed down the judgement in the Gauteng High Court, and fined Auction Alliance millions of rands. You can read the full judgement at the following link:


What does this mean for us, the ordinary people? I am not a legal expert, but let’s speculate a little. If the court finds that an auction house’s auction process was fraudulent and illegal, it means that all properties sold by them during the period when they were using the fraudulent procedure were sold illegally. This means that all these transactions are null and void, and the previous status must be restored. People who bought properties at their auctions will have to give the properties back, and will have to get their money back from the auction house if they still have the money!


All liquidations that were the result of these fraudulent auctions, where houses were “stolen” at prices far below market value and where the owners were then sued by the bank for the shortfall on the price and were consequently liquidated, are null and void. The houses must be returned to the owners, their legal status and credit status must be restored, and the bank’s repossession process must start from the beginning again. This means, of course, that investors who bought houses on the fraudulent auctions could lose their houses, and possibly any money that they’ve already paid for them. This is the bad news!


The good news is that people whose houses were repossessed by the banks as part of the auction house’s fraudulent scheme and bribery must get their houses back, and must very possibly also be compensated for the damages they suffered. This could run to enormous amounts when the personal trauma that results from an illegal liquidation is translated into rands and cents! One thing that counts in Auction Alliance’s favour is that they apparently have lots of money and can finance massive, long court cases. Their friends – the banks, and the banks’ owners, the insurance giants – will naturally also help, because if they don’t win this one, it’s the end of the whole Evil Empire.


They could perhaps tire their enemies out through fighting and win the case that way. One thing that counts against them is that one of their buyers who has now laid charges, Wendy Appelbaum, is a billionaire, who, according to Die Burger of 20 February, has already made it clear that this is a matter of principle for her. She says, “I will not stop fighting for what is right.” I wonder whether she knows what she’s up against? These are BIG powers.


Blikskottel: Knows recognizes big trouble when he sees it.

6 antwoorde op More on the liquidators scam

  1. Hierdie is al vir baie, baie jare ‘n probleem.

  2. Dis so, maar nou gaan dinge oopgemaak word.

  3. Wendy is Donald Gordon van Liberty Life se dogter. Sy het genoeg geld om hule aan te vat.
    Hulle het egter nie haar aanbod vir die Wynplaas aanvaar nie, so sy het niks verloor nie.

  4. Sy het dalk ‘n geleentheid verloor Neander. Dit tel ook as skade.

  5. Dis verseker en die keer lyk dit of die wat juis die wet moet onderhou ook deel van alles is.

  6. Ek hoop net sy word regverdig voor die reg behandel.

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