Cape Town - The Bellville Specialised Commercial Crimes Court finally sentenced insolvency practitioner, Bernard Gutman, to 10 years direct imprisonment after he delayed the fraud and money laundering case against him for over 15 years.
The National Prosecuting Authority said Gutman caused unreasonable delays and numerous frivolous review applications to the high court.
He was convicted on 29 counts of fraud and a count of money laundering, and was sentenced to 12 years imprisonment of which four years was suspended on condition that he was not convicted for the same charges throughout suspension.
He was also handed eight years direct imprisonment and the court ordered six years imposed on the money laundering count run concurrently with the sentence imposed on the fraud counts.
The NPA said he was effectively sentenced to 10 years direct imprisonment.
“Gutman practised as an insolvency practitioner between 2001 and 2006 and would receive a certificate of appointment from the Master of the High Court appointing him in respect of the insolvent estate in question.
“He was expected to hold the insolvent estate in trust to preserve the assets for the benefit of the legitimate creditors, and administer the estate to ensure that creditors are paid and pay the legitimate creditors of the estate.
“He misappropriated funds held by him in a trust which were supposed to be paid to the insolvent estates he was an administrator of.
“He diverted the monies to his bank account for his benefit.
“As a result of the misappropriation of the funds from the insolvent estates, the surety policies were called up by the Master of the High Court because of the pecuniary losses suffered by the insolvent estates.
“Santam Insurance Company paid R1.8 million; Constantia Insurance Company Limited (CICL) furnished R2.1 million and South African Eagle Insurance Company paid R1.5 million.
“He argued that the monies were loans he intended to repay,” the NPA said.
Gutman was removed from the estates in January 2006.
Director of Public Prosecutions in the Western Cape, Nicolette Bell, said the case was a “classic example of the wheels of justice moving slowly but, in the end, ensuring that the accused pays for his actions”.
“The accused in this case tried all tricks in the book to frustrate justice and avoid going to jail. He failed,” she said.