Georgiou tried to ‘sabotage’ investors’ rights

Court has harsh words for property magnate’s attempt to scuttle class action suit.
Nic Georgiou

The South Gauteng High Court labelled property magnate Nic Georgiou’s latest attempt to scuttle the looming class action suit and the application for the revocation of the Orthotouch scheme of arrangement, an “act to sabotage the claims of investors”.

This judgement by Judge Mohamed Ismail follows an almost bizarre turn of events which saw Georgiou settle the claims of the six applicants, who represented around 7 000 other members of the Highveld Syndication Action Group (HSAG) late last year. After these claims were settled, the six applicants secretly appointed new attorneys and applied to the court to withdraw their original application against Georgiou and Orthotouch. This was done without notifying the HSAG legal team.

If this application had succeeded, it would have ended the HSAG class action suit.

When HSAG attorney Jacques Theron became aware of these developments, he opposed it stating that it was a clear attempt by Georgiou to “buy off” the six applicants and to “hijack” the class action suit.

He said the six applicants were mere representatives of the 7 000 HSAG members and could not withdraw the application in their personal capacity.

Judge Mohamed Ismail agreed and had some harsh words in his judgement:

“The court was requested to intervene in light of the alleged abuse by Mr Georgiou who it was submitted devised the scheme by using Mr Donnenberg (the new lawyer of the six applicants) to withdraw the main application thereby setting back the current application and delaying and prolonging the class action. It was submitted that the court cannot sit back by indifferently and nonchalantly permitting this type of abuse and egregious conduct by a litigant against others rights.

“This is exacerbated by attorney Donnenberg’s withdrawal of the main application without informing Mr Theron or the HSAG thereof timeously. This ‘scheme or stratagem’ it was submitted smacked of collusive behaviour on the part of Mr Georgiou and Mr Donnenberg to rid themselves of the HSAG investors claims.

“The withdrawal by the nominal applicants of the action was nothing other than an act to sabotage the claim of the other investors, in the form of the HSAG. I am of the view that this court cannot idly sit by and observe or countenance such conduct designed to deprive the investors of their rights to proceed with any intended action they may have.”

In response to the judgement, Theron said it “is another major victory for the HSAG as well as the administration of justice”.

He added that the path has been cleared for the HSAG members to pursue their claims against Georgiou and Orthotouch.

Theron said the next step is to execute Judge Brian Spilg’s order by compelling business rescue practitioner, Hans Klopper, to provide the names of the Highveld Syndication investors to the HSAG.

Klopper applied for leave to appeal in the Supreme Court of Appeal but later withdrew it.

HSAG management committee

Georgiou has not only targeted the applicants in the case, but also key individuals within the HSAG management committee. He allegedly settled their claims, or offered them employment. These include Elna Visagie, Herman Lombaard and Helgard Hancke.

Theron confirmed that a new committee member has been appointed to the HSAG, although he did not name the individual.

The HSAG was represented by Adv Watt Pringle SC, assisted by Adv CHJ Maree. Georgiou was represented by Adv N Redman SC, assisted by Adv Mostert.

Georgiou did not respond to emailed questions.

Read the judgement here.

Oops! We could not locate your form.



Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.


Like I have been saying….I think the Nick and Michael Georgiou should be sitting behind bars.

In 12 – 15 years time ? ? ?

I will second that.

It is sad that justice is so slow and these criminals are able to carry on for years getting away with this time of behaviour. Jacques Theron seems to be doing a good job for the HSAG, but it is hard to get too optimistic that justice will ever be fully surved. Sad.

I trust Judge Mohamed would now regard himself as being “seized with the matter” and will hear the class action as well.
No doubt this crook’s actions must be open to the court when the class action is heard

Once again – – – – Moneyweb censors comment – – not adverse or rude comment – – just good common sense comment

Self enrichment property companies very much in the news guilty of malpractice must surely be top of the NPA list?

Do you want to known what is the worst crime of all. Hancke and Visagie has held a meeting in Bloemfontein approximately 2 – 3 weeks ago and not all investors were “invited” to this meeting. It would appear that mostly pensioners were targeted to attend this meeting and these mostly aged pensioners weren’t informed whom they [Hancke, Visagie] were representing but was told in no uncertain terms that they [pensioners] should accept the offer on the table: “shares” in a “company” [what shares???, what company????], should accept the money as “offered” as there is “no chance that the Class Action would succeed”, etc etc. You can bet your bottom dollar that these pensioners weren’t told about this Court action taken against the Georgiou group as Hancke and Visagie is aware thereof that these pensioners doesn’t have internet access and is not well versed with the Law. As far as I’m concerned that in view of this Judgement legal action should be taken against Hancke and Visagie.

Just a correction of the comment of 23 March 2017 that was left by me. The meeting in Bloemfontein was held by Herman Lombaard and Elna Visagie. Apologies for any inconvenience caused. I do, however, still stand by my opinion that the actions of the said parties should be investigated in view of the judgement as it’s incomprehensible that vulnerable aged pensioners be targeted to such an extent.

Nic Georgiou and his sons need to be in jail.

Tell me, how is it that this man can still participate in a listed entity (Accelerate) with this criminal record?

End of comments.



Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.

Follow us: