J Arthur Brown has been found guilty on two counts of fraud in the Western Cape High Court today. Brown had handed in a document last week admitting to two major charges of fraud relating to the Transport Education and Training Authority (Teta) and Mantadia Asset Trust Company (Matco) in his embezzelment trial.

Judge Anton Veldhuizen said:

We are satisfied the admissions (made by Brown) are sufficient for conviction. At this stage I do not find it necessary to elaborate on the exact basis for this.

Teta had advanced two promisary notes and two cash amounts totalling R200 million to the Fidentia group as an investment on a non-discretionary mandate. R15 million of that cash amount had been returned.

Brown admitted that these amounts had been invested from time to time in asset classes, but were different to those specified in the investment mandate. He further admitted that monthly statements prepared for Teta between May 2003 and September 2006 were incorrect.

Brown admitted that Fidentia misrepresented itself when it said that the full purchase price would be paid before Fidentia took control of Matco.

He faces a minimum of 15 years imprisonment and was cleared of seven minor charges, including theft.

His sentencing is set to take place on 29 April 2013.

[Source: Fin24]