LEW GEFFEN SOTHEBY’s INVOLVED IN TRUST FUND FRAUD – NEW EVIDENCE FOLLOWING GEFFEN’S COVER-UP in MARCH 2011.

Sandy Geffen's email to their Accountant

On the 20 January 2011, a Whistle Blower’s report was submitted to the Estate Agency Affairs Board (EAAB) alerting them to the fraud surrounding the Lew Geffen Sotheby’s Trust account. The Whistle Blower explained how the fraud was committed by Lew Geffen Sotheby’s and said that the Sotheby’s case was no different to the Wendy Machnick fraud, which resulted in her being found guilty, for which she is currently out on bail pending her trial.

Soon after the Lew Geffen Sotheby’s investigation started in early 2011, Mrs Nomonde Mapetla, (CEO at the EAAB) was dismissed, so too was Mrs Lindiwe Bulo, the Compliance Executive handling the case; instead Clive Ashpol and close acquaintance of Lew Geffen was appointed as the new compliance officer at the EAAB. Clive Ashpol produced un-circulated minutes to exonerate Lew Geffen, subsequently stopping the independent investigation by Pasco.

Both Mrs Nomonde Mapetla and Mrs Lindiwe Bulo were shocked regarding the manner in which the cover up was orchestrated within the EAAB – furthermore, there has been no formal explanation regarding their sudden dismissal.

There has been another Whistle Blower’s report that has brought new light to the Geffen saga. In this latest report, the anonymous caller provided proof that Sandy Geffen, (director of Lew Geffen Estates), in an email to company’s auditor, instructed them to tidy up the Sotheby’s Trust account. This email was sent in March 2011. In Sandy’s email she says “ .. in case of inspection (by the EAAB), we should be aware of all discrepancies .. forewarned is forearmed”.

Sandy Geffen adds: “Before we do any transfer from Trust to Business to pay any creditors/agents this exercise must be redone again and I or Lew or Yael need to approve the transfer and sign it off”

The first Whistle Blower explained how the Lew Geffen Sotheby’s fraud was committed: “… when a person buys a house they deposit money into the trust account … it would amount to fraud if this money is used for anything either than for the acquisition of the house that the person was intending to purchase and if an estate agent is having problems in their business … they then use the trust fund money illegally to pay salaries, rent and their day to day operating costs”

Sandy concluded in her email to the auditor “The agents already want 60k from Bedfordview”. Trust accounts and money, under the law, may NOT be tampered with - they are to be held in a separate bespoke bank account and may only be used in the purchasing of a house, and most certainly there can be no transfers from the Trust account to Business account as Sandy Geffen warns her auditor to clean up.


There are a number of unanswered questions:

1. Where are the minutes of the Exco 14th February meeting Geffen reports took place, who signed them and what do they say?
2. What did the minutes of the 16th February Exco meeting record which resulting in the CEO shake up on the 17th February? 
3. What is the official reason for Nomonde Mapetla and Lindiwe Bulo sudden suspension on the 17th February, the day following the Exco decision to investigate Lew Geffen Estates? To date no official reason has been given, there has been no official enquiry and no disciplinary procedures have taken place.
4. Why was the official investigation by Pasco into the matter suddenly halted by Clive Ashpol?
5. Why has the EAAB not replied to the Whistle Blower’s report sent to them on 20th January 2011.
6. What cover up will Lew Geffen and the EAAB now come up further to Sandy Geffen’s email to their auditor regarding the transfer of funds from their Trust account to their business account?
7. Why is Minister Rob Davis protecting the EAAB, defending the likes of Sotheby’s and Seeff? 
8. There are numerous other Whistle Blower’s reports that have been ignored by the EAAB, yet the likes of small fish like Wendy Machnick are targeted, seemingly as scapegoats for the main perpetrators. Is this justice for all?

In 2010 Lew Geffen was dragged to Court when he tried to sell his auction company, Savile Row to Rael Levitt’s Auction Alliance Company.

Geffen’s partner’s in Savile Row took the matter to the High Court. Here is a synponsis of the case.

Lew Geffen

Rael Levitt

 

 

 

In the High Court matter between Geffen/Akoojee and Savile Row in 2010, Geffen contrived a scheme to sell Savile Row Auctions to the Alliance Group, without the approval of the Savile Row directors and shareholders.

Geffen had told Auction Alliance he could quickly get rid of the Savile Row MD and simultaneously withdraw his financial guarantees “so that the business will collapse in weeks”

Geffen promised Alliance a comprehensive due dilligence into the Savile’s affairs without any of Savile’s shareholders and directors knnowing about it. The court ordered that the due dilligence be halted and that Geffen and Auction Alliance be prevented from using any confidential information.

Stephen Thomson, Geffen’s trusted Attorney, contrived court papers in a manner, which were frequently unsubstantiated. By way of example, in the extract from the court papers in the aforementioned case, the opposing party revealed in their replying affidavit how Thomson, on behalf of Geffen, “made allegation that are unsubstantiated and unfounded without providing a shred of evidence, in a vindictive campaign, using sworn affidavits in support of their unsubstantiated allegations”

Geffen, via Thomson too uses the “urgency” aspect of a High Court application to expedite his cause, introducing elements that are aimed to convince the Judge that Geffen is a  victim of an urgent gross injustice, whereas in fact Geffen is frequently the real perpetrators.

The extract below from the court papers, summarised Thompson’s tactics succinctly:

“It is further submitted that clear and undoubted proof of the applicants’ (Lew Geffen and Akoojee) scurrilous, false and unsubstantiated allegations is the applicants’ reckless behaviour in bringing an application where:

•    they know evidence to be false;

•    they know certain allegations to be without any justification or substantiation; and

•    they ought to have foreseen a real dispute of fact.”

Neither Geffen nor Thomson have no morals or ethics when it comes to doing battle, and Thomson will draft affidavits for his clients without regard to substantiated facts or evidence and frequently entices his clients to make statements that are clearly false. Rouge clients and attorney exist in every walk of life; Thomson though pushes the boundaries further than most.

The following court statements, made in defence of the trumped up charges, in the same case cited above, substantiate the above:

• Geffen’s behaviour was unacceptable and disgraceful; to such an extent that it caused the gradual corrosion of the relationship, trust and goodwill between all the parties at Savile Row. Geffen’s treachery was the symbolic ‘straw’ that broke the camel’s back, and resulted in the respondents (and others) concluding that a continued relationship and association with Geffen was unsustainable, and would be tantamount to professional suicide;
• Geffen’s conduct was so deplorable and unacceptable to the respondents, that internal steps were taken against Geffen, including his retraction “from operational issues” and to act only as non executive chairman and director
• Another facet of Geffen’s cleverly laid out plans to collapse Holdings and Savile Row, became evident in April 2010, when Geffen sought to effect the departure of the CEO of Savile Row, Townes. Clearly, if Geffen could get his hands on this shareholding, he would be able to control the group of companies (with the help of “his accountant”, Bloch), and answer to no-one. This was ultimately prevented from happening.
• Geffen’s June 2010 offensive communication to staff: Geffen has sent, on a number of occasions, demoralising, insulting, offensive and inappropriate communications to members of staff within Savile Row, purely with the objective of demoralising them, and destabilising the business.
• Geffen’s September 2010 approaches to competitors: Geffen’s campaign to collapse and bring down Savile Row continued, when he approached competitors in the auction industry, with a view to establishing a new auction business. Geffen’s intent was to set up his own, new competing interest, to the detriment of Savile Row (the same company he now professes to “protect”).
• The harm caused by Geffen’s conduct: the constant fighting of internal battles within Savile Row, which battles were fomented by Geffen in his effort to destabilise the business, was another factor that significantly affected the respondents’ abilities to focus their efforts and attentions solely on rendering efficient and profitable service to Savile Row and their clients.

Thomson, frequently undermines the integrity of his opposition, labelling them dishonourable, unethical, scum, pests and the like, and if he does not get his way, he threatens them with various charges, High Court injunctions, contempt of court and the like. This pattern repeats itself time and time again.

Security alert for head of estate agents watchdog

WERNER SWART and SASHNI PATHER | 27 February, 2011 00:04

Suspended Estate Agency Affairs Board CEO Nomonde Mapetla has been given 24-hour protection after a "threat assessment" determined that her life was in danger.

Mapetla, who has been instrumental in launching an anti-corruption campaign, was suspended last week.

A source close to the beleaguered CEO revealed that her dog was beaten and stabbed and left in front of her door several weeks ago - and unmarked cars have followed her.

In another incident, a senior manager at the EAAB, whose name is known to the Sunday Times, was also followed in a car, which then pulled up next to her. Men inside took photographs of her, apparently with the intention to intimidate her.

The EAAB said on Friday that Mapetla faced charges relating to "operational and governance issues", but she said she had yet to be informed of the case against her.

"I believe I am being vilified for doing my job," she said.

"When I joined the organisation, the board was over R7-million in debt. Since I took over, the board has had clean audits over the last six years, and now the system works."

She has sent EAAB chairman Thami Bolani a lawyer's letter, saying the board did not have the power to suspend her, as it was "improperly constituted".

The new board was appointed in January and consists of 11 members.

Mapetla pointed out that, in terms of the Estate Agency Affairs Act, "t he board shall consist of 15 members appointed by the minister".

The letter says : "Our client shares the widely held belief that her suspension is directly linked to the ongoing anti-corruption campaign which she has championed to clean up the industry, thereby stepping on some big and powerful toes who wield considerable influence and whose interest her inexplicable removal would obviously serve."

High-profile probes were recently launched against property doyenne Wendy Machanik, who has been accused of dipping into trust fund accounts. The EAAB won an interdict to stop her from trading, effectively shutting down operations . The matter returns to court in April.

Also under investigation is a fractional ownership scheme marketed by Seeff Properties. The Sunday Times recently revealed that shocked shareholders had discovered their luxurious holiday homes were heavily bonded without their knowledge.

And the Sunday Times has established that the EAAB recently received a whistle-blower's claim that property mogul Lew Geffen, the South African chairman of Sotheby's International Realty, was allegedly involved in trust fund account abuse.

Although a source claimed a decision to investigate Geffen was taken at an exco meeting, the EAAB board and Geffen have denied this.

Geffen said on Friday: "The minutes of the exco meeting to which you refer do not reflect any decision by the exco to investigate Lew Geffen Estates ... in fact, my attorney, Stephen Thomson, spoke with Mr Sigaba from EAAB exco, (who) was at the meeting held on February 14, and he denies that a decision was made to investigate Lew Geffen Estates."

He called on the EAAB to "immediately put an end to this matter or we will have no other choice but to legally force the board to audit our trust account without delay".

He claimed he was being used as a "scapegoat of internal politics in the EAAB". "All this unwarranted speculation is prompting unnecessary attention on my good name and my impeccable trading record."

Bolani responded to Mapetla's claims, saying: "The board has always had 11 members, and all decisions taken have been lawful. Not long ago, she (Mapetla) asked that her contract be extended another two years, and she didn't complain then because it benefited her."



George Nicholls, CEO of Pasco, which the board appointed to carry out investigations, confirmed that Mapetla had been given extra security.

The Sunday Times has learnt that "prominent estate agencies" are being inspected to protect the public's interests, more especially with the developments of luxury estates.

A source close to the investigation said: "These agents claim to be developers so that they can bypass regulations covered by the Estate Agency Affairs Act. We are also looking into how the sale of properties is being disguised to look like a loan and agents are taking their commissions off these loans, which is illegal."