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Property magnate backs down, pays costs

In a surprise move property magnate Nic Georgiou agrees that he acted unethically and abused the legal system.
Nic Georgiou in happier times. Picture: Moneyweb

More than a year after two High Courts found that property magnate Nic Georgiou tried to scuttle the class action application by the Highveld Syndication Action Group (HSAG), Georgiou withdrew his appeal in the Supreme Court of Appeal and tendered punitive costs.

This unfolded in the SCA in Bloemfontein on Tuesday where Georgiou withdrew the appeal against two scathing judgments in the Pretoria and Johannesburg high courts that found he acted unethically and abused the legal system in an effort to thwart the class action application.

He was granted leave to appeal against these judgments, but on Tuesday withdrew his appeal and tendered punitive costs to the HSAG after several of full bench of judges severely criticised his, as well as attorney Jeff Donnenberg’s conduct.

Georgiou did not respond to requests for comment on why the application was withdrawn before a judgment could be handed down, as well as why punitive costs were tendered without being ordered to do so.

This effectively means that Orthotouch investors will be footing the punitive legal bill without being ordered to do so.

The appeal follows a bizarre set of events when Georgiou secretly approached the six applicants who applied for certification in the class action suit on behalf of the 7 000 HSAG members to have the Section 155 Scheme of Arrangement set aside. Georgiou then settled the claims of these six applicants on the condition that they change lawyers and withdraw their applications, effectively bringing an end to the class action.

This was done without informing Jacques Theron of Theron and Partners, the six applicants’ and the HSAG attorney of record.

In a statement, Theron stated that the full bench of judges made it clear that it was a deliberate scheme to stop the class action. “This was on account of the gross abuse of the court process and because Georgiou/Orthotouch deliberately conspired to derail the class action, and in the process delayed the certification and rescission application by 18 months.”

Says Theron: “This represents yet another major victory for the HSAG. It is unheard of that an appellant withdraws an appeal and then tenders attorney client costs. The HSAG can now continue with the application for certification of the class action and the application for rescission of the Section 155 Scheme of Arrangement.”

 

 

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COMMENTS   4

Comments on this article are closed.

It is time to get Connie Myburgh in court for hijacking and abusing the Sharemax syndication. Him and other directors ripped the profits away that should have paid out to investors. I hope Gerrie Nel can take this up.

I am an investor in the Higveld Syndication / Orthotouch / Nic Georgiou saga. We are mostly old people. Apart from this mess we are in we only get a 2% interest on our investment. We are supposed to get that according to the 155 Agreement on the 7th of every month but for the last four month it has varied. April some people only got paid on the 18th. This month we received a sms to warn us that interest payments will only be finalised by MONDAY. But I am so happy for all the publicity regarding this matter in the VOLKSBLAD, DIE BEELD and today in MONEYWEB. Thank you Ryk

A form of Expropriation Without Compensation??

This Pickvest/Ortotouch mess started when there was a dispute over money of R800 Million plus not received by Zepan ( Nic Georgio)for properties sold to Bosman Visser owned by Rikus Mybugh CEO of Pickvest This dispute was never verified and was the core of all the heartbreak of many investors.Where are the legal protection against such entities?All that they need to do is follow the flow of funds from Eugene Kruger the trust attorney to Bosman Visser to Zephan Properties to establish where the investors money went to. That simple paper records and bankstatements cannot dissappear!!!! Accelerate property fund with Michael Georgio son of Nic Georgio as CEO had some properties of the Highveld Companies that was paid by investors in their stable Confused????

End of comments.

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