No wrongdoing associated to the switch of funds – Zephan and Orthotouch BRP


Jacques du Toit, the enterprise rescue practitioner of Orthotouch and Zephan, has vehemently denied any wrongdoing in having instructed that an quantity of R1.12 million on account of Orthotouch buyers be transferred from an lawyer’s belief account to Orthotouch.

In a 100-page affidavit in response to allegations by Robert Black, a former investor within the HS firms, Du Toit additionally states he has already instructed his lawyer to institute defamation proceedings towards Black, and his lawyer Ilze Eichstadt. He additionally intends to put a grievance misconduct towards Eichstadt “for getting ready an affidavit which she ought to have identified incorporates false allegations”.

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Du Toit submitted this affidavit to the South African Restructuring and Insolvency Practitioners Affiliation (Saripa) after the physique requested a response to Black’s affidavit.

Du Toit has additionally repaid the cash right into a belief account till there’s readability concerning its standing.

In his founding affidavit, Black alleged Du Toit unlawfully authorised the switch of the R1.12 million to Orthotouch. The cash was initially on account of former buyers within the Highveld Syndication schemes, by way of the Part 155 Scheme of Association (SOA) which introduced Orthotouch about.

Nonetheless, in 2018 Zephan, owned by Nic Georgiou and the underwriter of the SOA, terminated all curiosity funds to round four 500 buyers who have been deemed to assist authorized motion towards Georgiou and entities associated to him.

Learn: Criminal charge laid against Orthotouch BRP

This was in contravention of the SOA, and the curiosity was paid into an lawyer’s belief account on demand of the previous receiver of the scheme, Derek Cohen, over which he had full management.

An escrow settlement was signed by Cohen and Georgiou, on behalf of Zephan and Orthotouch in November 2018, which offered that the monies could be held within the belief account “till directed by the Receiver to make cost to every investor, alternatively return the cost to Orthotouch/Zephan.”

Nonetheless, Cohen resigned shortly afterwards in 2019, and no substitute has been appointed thus far.

Du Toit was appointed because the enterprise rescue practitioner of Zephan and Orthotouch in 2019 and assumed management of each firms.

Learn: No more interest payments for investors fighting Georgiou, Orthotouch

In response, Black laid felony fees of theft towards Du Toit.

Du Toit’s affidavit

Du Toit states in his affidavit that he had authority to entry the funds because the enterprise rescue practitioner of Zephan and Orthotouch. He provides that the escrow settlement entered into by the events additionally allowed him to take action.

“It’s inconceivable on what foundation Black may have come to the conclusion that I’ve stolen these funds. I’ve instructed my lawyer to concern summons towards Black and Eichstadt primarily based on defamation and to put a grievance misconduct towards Eichstadt for getting ready an affidavit which she ought to have identified incorporates false allegations.”

Regardless of these views that he had the authority to entry the funds, Du Toit has however positioned the cash again into an unbiased belief account. That is confirmed in an e-mail Johan Victor, Du Toit’s lawyer, despatched to Saripa CEO René Bekker.

“I want to verify that the deposit of the disputed quantity has certainly now taken place and the funds will probably be held in Belief pending a dedication of whether or not the collectors, to whom these funds could relate to, are secured or unsecured for functions of the enterprise rescue course of,” Victor wrote.

Moneyweb approached Eichstadt for remark. She declined to touch upon the content material of Du Toit’s affidavit, however mentioned an answering affidavit is being ready.

Enterprise rescue plans

Throughout the course of communication between Moneyweb and Victor, Moneyweb requested an replace associated to the enterprise rescue strategy of Zephan and Orthotouch.

By Victor, Du Toit said that he’s busy with a revision of the enterprise rescue plans and that he’ll publish a revised plan inside the subsequent few weeks.

Victor mentioned the Zephan and Orthotouch draft Enterprise Rescue Plans had been supplemented with extra data to handle issues raised by affected events and their attorneys. “A number of the extra data pertains to funds made to pre-2011 collectors (not addressed in earlier draft plans). Additionally, complete data got here handy about properties which fashioned a part of the earlier Scheme of Association – which in flip was the consequence from the earlier Enterprise Rescues (of assorted underlying firms [of which Hans Klopper was the BRP]).

“Ample details about the 17.29% mark-up by Bosman & Visser and the HS Corporations, which was added to properties acquired for R3.9 billion can be included within the revised plans along with the distribution breakdown of such mark-up.”

Victor additionally mentioned this plan would come with data associated to the second collectors’ assembly the place events will vote on the adoption of the plan. “It’s foreseen that this assembly will probably be a hybrid assembly, the place collectors can both attend personally or through an digital feed.”