Directors Nefarious Use Of Liquidation Process To Avoid Consequences Or Discovery

[Lawyer Destroyer]

In this thread, I intend to debunk the myth that liquidators act in the best interests of the creditors and reveal to you all how they operate, what they do, how they get paid and ultimately what roles they play, this will include significant revelations about certain firms and certain lawyers who will be carefully referenced to ensure that forum rules are adhered to. In the meantime as I prepare to fly to Cape Town shortly, I will consider where to start on this fairly broad subject.

Please feel free to contribute -...

[KimH]

I was personally affected by this very practice earlier this year - after raping a very profitable and viable group of companies, my ex employers filed for liquidation - many of my colleagues were left with nearly 3 months of unpaid salaries and all of them are patiently waiting for the liquidators to pay them what is due, call me cynical but somehow I doubt any of them will see a cent.

I look forward to reading your further postings on this.

[Koos C]

8 lawyers in 3 years and now my stuf aregoing to get sold to pay sombody else's debts. the liquidator was worned that it tools and assets do not belong to them but he just collect stuf to sell. Will plase the whole story later

[Asterix]

LD - There are a lot - an incredible amount of these happening - and it is just like fraudulent insurance claims - in concert with a supplier of retail goods.... a drain on the whole country. There are rumours that this is just a dirty revenue gathering excercise for some directors who work with lawyers and liquidators, planning the steps and executing them neatly. This is almost like daylight robbery and just about everyone I know has been affected - it's just another form of crime....

Look forward to reading your posts and information on this.

[Koos C]

This morning I got the liquidators report. Apparently there were a meeting held on feb but non of the creditors were notified of this. The seconda meeting was held in may and again non of the creditors was notified of the meeting.
I have a high court judgment against this company that concerns two properties and R500k + but the liquidator disregard my claim. According to reg 80 of the liquidation act I must give my permision in writing to athorize the sale of the propertry but the liquidator did not contact me in this regaurd

where do I go to report a liquidater who is braking the law nowingly ???

8 lawyers in 3 years and now my stuf aregoing to get sold to pay sombody else's debts. the liquidator was worned that it tools and assets do not belong to them but he just collect stuf to sell. Will plase the whole story later

[Lawyer Destroyer]

Koos C I have PM'd you details....

[Lawyer Destroyer]

A lot of people have pm'd me to ask when I will continue this thread. The answer people is soon. I have a high case load at present and am also assisting a private investigation which started on this Forum - great tool Dave A. Bringing people together. It has surprised me just how much information has surfaced from the few references to this Dr DS Grieve Ponzi Scheme case on this board and I am impressed by the amount of volunteers willing to provide, share and give information, advice and even assistance. This is a very useful and largely underestimated resource to anyone in the legal field as well as anyone with a business related problem -

I will continue this shortly - probably within the next two or three weeks. I want to make it inspirational, encouraging and educational.

[ReliaGains]

I have very basic question with regards to the employer's ability to abuse the liquidation process.

I received an award from the CCMA related to a matter involving an unscrupuloius CEO. Long story short...the company informed me that they would be taking the matter for review with the labour court, started the process, but after the first step they indicated that they would be liquidating.

We tried to arrange for meetings with the liquidator since April (without success) and just found out the company had changed it's name and landed anew contract. The company profile uses the "old" company's history, trademarks and copyrights. The methodologies and most of the writings are materially the same. The old and new profiles are essentially identical. The new name does not exist on CIPRO, but the "old" company shows as being in force and, bothe profiles mentions that the business was known by the same name in years gone by.

The Question: Is the use of the this information allowed, if the old company had been liquidated, or am I right in my view that these companies are on and the same entities?

[Dave A]

Kim's probably got a fair gripe. Directors who plunder the company and then toss the scraps into liquidation should not be getting away with it easily.

But blaming things on the liquidator is a bit rich. The liquidator's job is to attend to the burial of a failed enterprise - as cost effectively as possible. If they burn cash on doing forensic audits sniffing for past transgressions just sommer, the creditors would be the very first bitching and moaning about the waste of cash.

If you know of hijinks, get hard evidence (or at least submit affadavits) to the Master. Attend the meetings of creditors and raise a stink there.

[Lawyer Destroyer]

Dave - fully agree - there are a lot of good liquidators who don't take nonsense from dodgy directors - many of them take their work seriously and take professional pride in what they do and the important role they play in business and the countries economy. But like every trade - there are always a few rotten eggs, low class characters, unscrupulous who simply use their powers (or don't) obscenely....

OK – Back from Cape Town and catching up. I asked around a bit on this saga and got a colleague who has some specialist access to have a quick glance and do some research for me as well. Asterix (and friend/s – fellow Gauls?) – You must push this particular issue into criminal charges, there are several reasons, some which I cannot share with you right now, but which will become clear later. There is an old maxim “seek and ye shall find…�. You may not have the tools or the access at the moment, but there are those that do and they are already briefed and waiting in the wings – waiting and watching…..

This situation is going from Gray to Black very quickly. You need to determine initially if it is a Ponzi scheme or not. Once that is determined the way forward becomes very very clear – quickly. As I wrote earlier and presented a definition, you need to match this up to available information and facts – once established, the fun and games begin. From what I can see and from what I have gathered……it smells like a Ponzi scheme, it sounds like a Ponzi scheme, and it clearly resembles a Ponzi scheme. This is a serious situation and needs to be treated seriously ok. People who commit these are always con artists with silver tongues, credible people who present well, convincing individuals who have support from their own family members and relatives, their own “infrastructure� – “vra my broer Jack, hy lieg net so hard soos ek….�who for the large part have been compartmentalised and only have parts of the truth….. If your friend has not spent the money on a private investigator yet – now is an ideal time….there are a number of really good ones and alongside a good reputable law firm are an arsenal and formidable force – . Next he/she must team up with the group who are already contesting/investigating the business collapse (unity is strength). Lastly – go in and see a member of the SAPS who deals with this type of action. Just ask at your local police station – they will point you in the right direction. This will prepare you for what you have to do next. Finally and I have PM’d you both a specific checklist. This is a dirty situation and you need to ensure that you stay and play by the rules all the time. There will be many opportunities to slide bases – take no shortcuts, just do this one step at a time, one day at a time. Remember if you sit by the river of life long enough the bodies of your enemies will eventually float by you…..

In the greater scheme of things this is a small fry liquidation, but a very good example to be set especially from what I have seen and can gather. So, persist in your efforts and remember the words of Winston Churchill – Never, never,never,never, never, never give up.

I have asked a number of friends and colleagues to follow this particular case and we will send you a PM link to a separate location where we will give you the benefit of specialist advice (not professional mind you) as well as otherwise unobtainable information that your friend/s will find invaluable. We will not mention names or anything else – don’t want the bad guys in this story knowing any more than they do ok.

As things develop I will let you know, but in the meantime, I want to rather focus on the other thread http://www.theforumsa.co.za/forums/s...ead.php?t=8355 to the benefit of the broader business community. It is a very sensitive subject and I am going to try and play it out as an educational process in steps. Please follow that one too….it is important and will also reference several areas and information you and your friend may find applicable and useful.