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.

“The 59-year-old was also sentenced to 36 months of correctional supervision, which includes house arrest for 24 hours per day,” said Ntabazalila.

“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 as determined at reassessment 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.” 

Ntabazalila said Korver may attend spiritual services, such as at a church or mosque, or have free time on Saturdays from 12pm to 4pm and Sundays from 8am to 12pm. He is not allowed to leave the magisterial district where he lives or works without permission from his correctional supervision officer. He is also banned from using alcohol or drugs, unless prescribed by a doctor. He must get written permission before changing his home or work address and not commit any further offences. 

“Part of his 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,” said Ntabazalila.

“He also accedes to the confiscation order in the amount of R1.2m, 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 [Korver’s] attorney’s trust bank account to the complainant’s nominated bank account.” 

Prosecutor advocate Denzyl Combrink said Korver 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,” said Combrink.

“These include R1.5m 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 R3m in legal expenses, due to the various civil litigation 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.”