‘It’s all a smear campaign’
CLAIMS APPLICANT JUMPED SHIP AFTER SETTLING CLAIM The gloves are off in the application for leave to appeal by Nic Georgiou against a judgment that he illegally tried to scuttle a potential class action suit.
In an affidavit, attorney for the Highveld Syndication Action Group (HSAG) Jacques Theron responded to allegations by former HSAG member Helgard Hancke in an application to become an intervening party in property magnate Nic Georgiou’s application for leave to appeal against a judgment in May.
This judgment found Georgiou acted unethically and abused the court process when he secretly settled claims of applicants of the class action on condition they withdraw their application.
Hancke stated in his affidavit that some facts in Theron’s founding affidavit, on which the judgment was based, were false. He strongly criticised Theron, saying he wasn’t acting in investors’ best interests and was only driving the process for his financial gain.
But in his opposing affidavit, Theron alleged Hancke “jumped ship” after Georgiou secretly settled his wife’s claim and he’s waging a smear campaign to discredit Theron to try and turn investors against the class action.
Allegations denied
Theron strongly denies Hancke’s allegations. Elsewhere in his affidavit, he states: “It is clear that Hancke is dancing to the tune of Georgiou, who is funding and using Hancke as another of his ‘front persons’ to further frustrate the class action litigation with delays and additional costs.”
Theron questioned why Hancke’s applying to become an intervening party as his wife’s claim was settled.
Hancke’s response
Hancke strongly denied Theron’s allegation that he “jumped ship”, stating he decided to turn against the class action when he believed it was no longer to investors’ benefit. Hancke stated he’s opposing the HSAG’s application to have the section 155 Scheme of Arrangement set aside as it would be “devastating” to investors. He rejected Theron’s contention that Georgiou secretly paid him to settle his wife’s claim or that he’d received funding from Georgiou.
Another point of contention is Georgiou’s investor settlements. In his original affidavit, Hancke alleged Theron was against investors settling claims, as it wasn’t in his financial interest.
These settlements refer to a process where Georgiou, via Orthotouch, offers to repay around 50% of investors’ original investments’ capital value in Highveld Syndication companies over about a three-year period.
Theron denied he was against settlements per se but said investors should be aware such agreements with only Orthotouch could severely damage their rights.
He added investors who settled with Orthotouch would be left destitute if the company goes into liquidation. Hancke also alleged Theron demanded a 1% negotiator’s commission on settlements and Georgiou refused to pay this. This demand, according to Hancke, resulted in Georgiou not settling the claims of around 800 HSAG members keen to settle.
Theron strongly denied he ever demanded a 1% commission for settlements. He said Georgiou didn’t want to sign the 800 settlements after the parties met for two days to do so. He also alleges Hancke “betrayed” the HSAG as he conveyed confidential strategies to Georgiou which resulted in Georgiou not signing the agreements.