Cohen resigns from Orthotouch

IMPLICATIONS: INVESTOR UNCERTAINTY OVER PAYMENTS

Current environment is too tough.

as a result of the unfair and inaccurate character assassination and vilification campaigns by certain investor groups, which may have caused aggression by certain of their members towards me. I know this is hearsay, but I cannot afford to take any risk in this regard,” Cohen said without identifying the investor groups.

He added “for example, one group made a statement to the effect that I had stolen the investors’ funds placed in a trust”.

“Not only is it patently untrue but inflammatory. I have been advised that this constitutes a potential risk to me and my family because one doesn’t have to be Einstein to assess potential risks.”

Moneyweb put questions to Georgiou regarding Cohen’s resignation but did not receive a response.

Cohen also stated that his office was broken into on Tuesday night.

The resignation follows several turbulent months and escalated tension. It began when Georgiou withdrew his appeal application in the Supreme Court of Appeal in May against several harsh judgments against him. This paved the way for the Highveld Syndication Action Group (HSAG) to proceed with its application for a class action certification and the rescission of the Scheme of Arrangement.

Advocate Louis Bolt also applied for the liquidation of Zephan, the underwriter of the scheme responsible for the monthly interest payments, after winning several judgments against Georgiou on behalf of individual clients.

Zephan then announced the suspension of monthly interest payments to investors who support any of the legal challenges. This decision was made without any apparent consultation with Cohen.

Cohen intervened and demanded that the interest due to these investors be paid into an independent trust account under his control.