Dutch national who defrauded companies sentenced to house arrest and community service
Image: File
A Dutch national with permanent residency in South Africa has been convicted and sentenced for fraud in the Bellville Commercial Crimes Court.
Martin Lennard Korver, 59, from Plettenberg Bay in the Western Cape, was convicted of fraud in the amount of R6.8 million and theft in the amount of R4 million. The total amount of loss was R10.9 million.
He entered into a plea and sentencing agreement with the State, where he confessed to his crimes.
Complainants in his case are Gustav Schaefer and Jan Eberhard Schliemann, directors of Cobow (Pty) Ltd and Korevest Investments Group (Pty) Ltd, based in Somerset West, Western Cape.
Korevest Investments Group (Pty) Ltd is a 100% shareholder in Cobow (Pty) Ltd, and the latter conducts the business of a guesthouse in Somerset West. The court heard Korver was a director of the two companies until his resignation on August 16, 2016. He and the complainants were in control of both companies' financial and banking affairs.
Korver was also the sole director of Korevest Leisure Group B.V., based in the Netherlands. Korevest Leisure is a 47% shareholder in Korevest Investments Group (Pty) Ltd, whilst the Schliemann Family trust holds 28% and the Finserf Foundation holds a 25% shareholding in Korevest Investments Group (Pty) Ltd.
In November 2013, Korver opened bank accounts with Investec South Africa on behalf of the two companies. The bank accounts were linked to his personal bank account without the knowledge and/or consent of the complainants, as this was done before their involvement. During May and June 2015, he opened a call deposit account and a loan account on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
He claimed the complainants were aware of the call deposit account. He entered into a loan agreement on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius and secured €442 602.94, which equates to R6.8million between the two companies and the bank. Korver used an immovable property (guest house in Somerset West) as collateral to secure the loan from Investec Bank of Mauritius.
Arguing in aggravation of sentence, Senior State Advocate Denzyl Combrink said the accused was in a position of trust which he abused to his financial benefit. He committed the offences to gain an unfair and unjustified financial advantage. Korevest Investments Group (Pty) Ltd incurred excessive expenses relating to loans and legal fees due to its illegal actions. These include R1.5 million, the company had to pay to Investec Bank of Mauritius to settle the loan the accused took out and failed to repay. The company also paid R3 million in legal expenses, due to the various civil litigations between the parties. One of the complainants had to lend Korevest Investments Group (Pty) Ltd
R1.5m to ensure that the business stayed afloat. Korevest Investments Group (Pty) Ltd incurred a deficit relating to its tax liabilities with the South African Revenue Services (Sars).
The court sentenced Korver to 10 years direct imprisonment for each count of which both were wholly suspended for five years on condition he is not convicted of fraud, theft, and/or any offence of which dishonesty is an element during the period of suspension.
The court further made a confiscation order in the amount of R13.4million following the Asset Forfeiture Unit's investigation of his assets.
Korver was also sentenced to 36 months of correctional supervision, which includes house arrest for 24 hours per day. He will be allowed to leave home between 7am am and 7pm on weekdays for work. The court sentenced him to community service for 16 hours per month for the duration of his sentence. It ordered him to attend rehabilitation programmes (including a stop crime or similar programme) as determined at re-assessment by the social worker at the community correction office, to substantiate the goals of correctional supervision.
The Commissioner of the Department of Correctional Services in George will determine the reasonable content and length, times, and places of such programmes. The department will recover the costs of the programmes from the accused.
The court also allowed for Korver to attend a spiritual growth service, including at a church or mosque. Or have free time on Saturdays from 12pm until 4pm, and Sundays from 8am until 12pm.
Korver is not allowed to leave the magisterial district of his residence or work without the permission of his Correctional Supervision Officer and is prohibited from using alcohol or drugs other than those prescribed by a medical practitioner. He must obtain written permission before he changes his residential or work address and not commit any further offence(s).
The court further ordered that part of Korver's sentence is that he will ensure that the 47% shareholding held by Korevest Leisure Group BV in Korevest Investments Group (Pty) Ltd is transferred to the Finserf Foundation, upon presentation to him of the necessary documents by the complainants. He also accedes to the confiscation order in the amount of R1.2 million, which will be paid as a lump sum within five court days of this agreement being made an order of the court. The money will be transferred from the accused' attorney's trust bank account to the complainant's nominated bank account.
The Western Cape spokesperson for the National Prosecuting Authority (NPA), Eric Ntabazalila said it welcomed the sentence as a strong affirmation of the uinwavering commitment to prosecuting corruption and fraud.
'These crimes not only erode public trust but also undermine economic growth and discourage local investment. This outcome demonstrates the NPA's dedication to protecting the integrity of South Africa's economy and promoting a fair, accountable business environment,' Ntabazalila said.
robin.francke@iol.co.za
IOL
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
3 hours ago
- TimesLIVE
Ballito residents warned of indecent exposure by young man
Ballito residents have been warned to be on the lookout for a young man who has been indecently exposing himself to women in the popular KwaZulu-Natal north coast town. Ballito Neighbourhood Watch (BNW), on its Facebook page on Monday, issued an alert about 'unfortunate incidents of indecent exposure' in the town. The body said it had received two reports about a white male, believed to be in his early 20s, who has been exposing himself to women. 'In the first incident a female jogger had passed the Boathouse when the driver of a white Toyota Aygo with GP plates stopped and asked for directions. He then exposed himself to her before driving away.' In a separate incident two holidaymakers aged about 16 and 20, were walking on the boardwalk on Saturday when they were confronted by the man. 'When they got close to Clarke Bay, a young, clean-cut white male exposed himself to the women.' BNW appealed to women to 'report immediately if you fall prey to this person'. The body also posted an image of the man from behind walking on the boardwalk. 'If you happen to know who this man is, please contact the authorities immediately. The lack of respect for females in our town is definitely not something that will be tolerated.' BNW did not immediately respond to a request for comment. Public indecency can lead to a fine of up to R4,000 or imprisonment for up to two years, or both, according to the Sexual Offences Act. Public indecency is a common law crime, not always specified by legislation but rather determined by court rulings. The severity of the act and circumstances influence the sentence. According to Psychology Today, a publication that focuses on psychology matters and human behaviour, 'exhibitionistic disorder is a condition marked by the urge, fantasy or act of exposing one's genitals to non-consenting people, particularly strangers. 'People with exhibitionistic disorder may have a preference to show their genitals to prepubescent children, adults or both. Some people may deny they show their genitals to unsuspecting others or deny the act causes them distress. If they have exposed themselves repeatedly to non-consenting people, they may receive a diagnosis of exhibitionistic disorder.'
IOL News
6 hours ago
- IOL News
Plett businessman forfeits R13million to the state
The sentencing was handed down in the Bellville Specialised Commercial Crimes Court. Image: File A Dutch national with permanent residency in the country has been convicted and sentenced for fraud in the Bellville Commercial Crimes Court. Martin Lennard Korver, 59, from Plettenberg Bay, was convicted of fraud in the amount of R6.8 million and theft in the amount of R4 million. The total amount of loss was R10.9 million. He entered into a plea and sentencing agreement with the State, where he confessed to his crimes. The complainants in his case were Gustav Schaefer and Jan Eberhard Schliemann, directors of Cobow (Pty) Ltd and Korevest Investments Group (Pty) Ltd, based in Somerset West. Korevest Investments Group (Pty) Ltd is a 100% shareholder in Cobow (Pty) Ltd, and the latter conducts the business of a guesthouse in Somerset West. The court heard Korver was a director of the two companies until his resignation on August 16, 2016. He and the complainants were in control of both companies' financial and banking affairs. Korver was also the sole director of Korevest Leisure Group B.V., based in the Netherlands. Korevest Leisure is a 47% shareholder in Korevest Investments Group (Pty) Ltd, while the Schliemann Family trust holds 28% and the Finserf Foundation 25%. In November 2013, Korver opened bank accounts with Investec South Africa on behalf of the two companies. The bank accounts were linked to his personal bank account without the knowledge and/or consent of the complainants, as this was done before their involvement. During May and June 2015, he opened a call deposit account and a loan account on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading He claimed the complainants were aware of the call deposit account. He entered into a loan agreement on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius and secured €442 602.94, which equates to R6.8million between the two companies and the bank. Korver used an immovable property (guest house in Somerset West) as collateral to secure the loan from Investec Bank of Mauritius. Arguing in aggravation of sentence, Senior State Advocate Denzyl Combrink said the accused was in a position of trust which he abused to his financial benefit. Korevest Investments Group (Pty) Ltd incurred excessive expenses relating to loans and legal fees due to its illegal actions. These include R1.5 million, the company had to pay to Investec Bank of Mauritius to settle the loan the accused took out and failed to repay. The company also paid R3 million in legal expenses, due to the various civil litigations between the parties. One of the complainants had to lend Korevest Investments Group (Pty) Ltd R1.5m to ensure that the business stayed afloat. Korevest Investments Group (Pty) Ltd incurred a deficit relating to its tax liabilities with the South African Revenue Services (Sars). The court sentenced Korver to 10 years direct imprisonment for each count of which both were wholly suspended for five years on condition he is not convicted of fraud, theft, and/or any offence of which dishonesty is an element during the period of suspension. The court further made a confiscation order in the amount of R13.4million following the Asset Forfeiture Unit's investigation of his assets. Korver was also sentenced to 36 months of correctional supervision, which includes house arrest for 24 hours per day. He will be allowed to leave home between 7am and 7pm on weekdays for work. The court sentenced him to community service for 16 hours per month for the duration of his sentence. It ordered him to attend rehabilitation programmes (including a stop crime or similar programme) as determined at re-assessment by the social worker at the community correction office, to substantiate the goals of correctional supervision. The Commissioner of the Department of Correctional Services in George will determine the reasonable content and length, times, and places of such programmes. The department will recover the costs of the programmes from the accused. The court also allowed for Korver to attend a spiritual growth service, including at a church or mosque, or have free time on Saturdays from 12pm until 4pm, and Sundays from 8am until 12pm. Korver is not allowed to leave the magisterial district of his residence or work without the permission of his Correctional Supervision Officer and is prohibited from using alcohol or drugs other than those prescribed by a medical practitioner. He must obtain written permission before he changes his residential or work address. The court further ordered that as part of Korver's sentence he will ensure that the 47% shareholding held by Korevest Leisure Group BV in Korevest Investments Group (Pty) Ltd is transferred to the Finserf Foundation, upon presentation to him of the necessary documents by the complainants. He also accedes to the confiscation order in the amount of R1.2 million, which will be paid as a lump sum within five court days of the agreement being made an order of the court. The money will be transferred from the accused' attorney's trust bank account to the complainant's nominated bank account. Provincial NPA spokesperson Eric Ntabazalila welcomed the sentence. Cape Times
The Herald
8 hours ago
- The Herald
Fraudster forfeits R13.4m in Cape guest house loan scam
A Dutch businessman who duped a bank into giving him a R6.8m loan using a four-star guest house as security has forfeited R13.4m to the state. The Bellville Specialised Commercial Crimes Court sentenced Martin Lennard Korver to 36 months under correctional supervision. Korver, 59, who lives in Plettenberg Bay and has permanent residency in South Africa, faced charges ranging from theft to fraud and money laundering. He admitted to duping Investec Bank Mauritius into giving him a loan using a four-star guest house in Somerset West as security. He instructed a law firm to register a mortgage bond over the guest house in 'favour of Investec Bank Mauritius to secure the said loan'. Korver was the director of a company, Cobow, that owns Albourne Guest House, until he resigned in 2016. His co-directors, Gustav Schaefer and Jan Eberhard Schliemann, were not aware of Korver's intentions and that the account was linked to his personal account. Korver was arrested in 2018 on 'two counts of fraud, alternatively, theft, totalling R6.8m, five counts each of forgery, uttering and theft amounting to R5.5m and one count of money laundering'. Eric Ntabazalila, spokesperson for the National Prosecuting Authority (NPA), said Korver opened the bank accounts in November 2013. 'The bank accounts were linked to his personal bank account without the knowledge and/or consent of the complainants, as this was done before their involvement,' said Ntabazalila. 'During May and June 2015, he opened a call deposit account and a loan account on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius. He claims the complainants were aware of the call deposit account. He entered into a loan agreement on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius and secured €442,602, which equates to R6.8m, between the two companies and the bank. He used an immovable property [guest house in Somerset West] as collateral to secure the loan from Investec Bank of Mauritius.' Korver entered a plea and sentencing agreement with the state. He was convicted of a charge of fraud in the amount of R6.8m and theft in the amount of R4m. He was sentenced to 10 years' direct imprisonment for each count, both wholly suspended for five years on condition he is not convicted of fraud, theft or any offence of which dishonesty is an element, committed during the period of suspension. The court ordered he forfeit R13.4m to the state after an Asset Forfeiture Unit investigation into his assets.
