TheBest of FA News.co.za

This month’s most popular piece looked at the controversial sentencing of former Fidentia boss J Arthur Brown. Brown received a sentence of 36 months in prison or a fine of R150 000 in the Western Cape High Court on 15 May; he was sentenced to 18 months of jail on each count of fraud and suspended for four years on condition that he not be convicted for fraud again.

The Financial Services Board (FSB) said it was ‘disappointed’ with the sentence because it ‘does not acknowledge the extent of the damage caused by Mr Brown’s actions’. Brown was convicted on two counts of fraud which allowed him access to funds intended for the beneficiaries of Mantadia (Matco), which was renamed the Living Hands Umbrella Trust by Fidentia.

This sentence does nothing to deter white-collar criminals and only furthers the perception that crime can pay.

"The Regulator had hoped that Mr Brown would be sentenced to a jail term that adequately reflected the seriousness of the crimes he has admitted to committing (at least the prescribed minimum of 15 years),” the FSB stated. "The type of sentence handed down today does very little to inspire the public’s confidence in the country’s judiciary system.”

 

The National Prosecuting Authority (NPA) also came under fire for possibly bungling the case and is likely to appeal.

 

In a strange twist, about 500 former mineworkers declared their intention to sue the Fidentia curators, Dines Gihwala and George Papadakis, saying they believe Brown can help them to recover their money. Brown previously made allegations against the curators so it’s not surprising he is fashioning himself as a post-trial ‘Robin Hood’, vowing he will not rest until the money is recovered. This neatly takes the focus off his own misdemeanours.

However, any allegations made against the curators in the past have not stuck and they appear to have done no worse than pay themselves first and run up forensic accounting fees that amount to R15m to date. To target the curators may be misguided – though it is understandable the former mineworkers are desperate to get their money back. Meanwhile, the FedGroup Beneficiary Fund Administrators stepped forward on 16 May and announced a R1m pledge to assist the mineworkers with the recovery of their missing millions – the sole heartwarming news in what continues to be a sad, sorry saga.

 

Readers were outraged at Brown’s lenient sentence. However, they suggested that the FSB and the NPA were equally to blame. Cynic said the error lay in prosecutorial incompetence on the part of the State and the FSB. "For them to now publicly try and shift accountability to the Court is obscene and reflects poorly on the integrity of the FSB,” he wrote.

 

"If the FSB is so outraged by the sentence, why did they not ensure that the NPA proceeded on all the counts against Brown? Surely they and the curators should have been ableto produce the evidence to convict Brown on the other counts?” wrote Concerned.

 

Readers also reflected on the unfairness of the verdict – the bottom line is that Brown is effectively a free man, while his victims are still suffering. "This is the worst sentence I've seen in many years in the industry. How on earth can this be? What message does this send to my clients and investors?” wrote Paul. "This is outrageous!” wrote Elsie. "Even brokers who have been misled by these investment companies have received heavier punishment, while CEOs and company directors get away with it.”

Lorraine referred to Judge Anton Veldhuizen’s comment that Brown’s ‘trauma and personal suffering’ had played a role in the judgment. "Who gives a fig about that, after seeing photos of him in a luxury home, driving a luxury car with his girlfriend. What about the misery he has caused?” she wrote. What indeed?