Eight years in jail for fraudster Rajbansi
VIMAL Rajbansi showed little emotion when he was told he would spend eight years in jail for fraud.
Before being escorted to the court grills on Thursday, he waved to his ex-wife, Sonia van Eck, who was seated in the gallery.
Magistrate Judy Naidoo, sitting in the Specialised Commercial Crimes Court, sentenced Rajbansi and his co-accused, Gideon Pretorious, to an effective eight years in prison. The men, both aged 51, were found guilty of defrauding Merchant West, an asset finance company, of more than R3 million.
In November 2010, Brainwave Projects, which supplies office automation equipment, approached Merchant West KZN for finance to pay for office equipment for its client, Ditona Construction.
Rajbansi, the son of the late Minority Front leader Amichand Rajbansi, was an agent for Brainwave Projects, while Pretorius, a NorthWest businessman, was the director of Ditona Construction.
Both men then generated an invoice with the serial numbers of the equipment. Based on this invoice, Merchant West KZN provided the finance on a rental/lease agreement. They did not know the equipment had already been purchased and financed by another company called Rentworks.
Two months later, when Ditona went into liquidation, Merchant West KZN tried to claim the assets they had financed so they would not be included in the liquidation. This was when they discovered they had paid for equipment that had already belonged to Rentworks.
In 2011, Rajbansi and Pretorius were charged with fraud and were each released on R25000 bail.
During mitigation of sentence, the first time offenders asked for suspended sentences.
Rajbansi, of Shannon Drive in Reservoir Hills, said he suffered from chronic conditions, including hypertension, and had two minor children. Pretorius said he was remorseful and suffered from insomnia, stress, anxiety and depression.
During aggravation of sentence, Nevas Heeralall, a senior State advocate, said chronic illness should not deter the court from doing its duty and called for their imprisonment.
In sentencing, Magistrate Naidoo said the court had to take into account the nature of the offence and the interests of the community in arriving at an appropriate sentence.
“With regards to the nature of the offence, the court cannot begin to emphasise the seriousness and prevalence of the type of offence of which the accused has been found guilty.”
She said white-collar crimes of this nature were often committed by people who claimed they were from respectable backgrounds and were not prison material.
“This is a clear fallacy that cannot be entertained. Crimes such as fraud have an even more corrosive impact on the individual and society. It is usually committed by educated persons who have access to modern technology to implement their deception for large amounts of money, as was in this case.”
Magistrate Naidoo said the actions of the accused were planned and premeditated. She also considered the impact the matter had on the complainant, Paul Buckle, the CEO of the Merchant West Group.
“The complainant had a lucrative business, and this had a negative impact on him. He had to close some of his offices. He also suffered emotionally. His family relationships have deteriorated. The court notes that this trial was a traumatic event for him.”
She then looked at how the complainant instituted civil proceedings to recover the loss, but the matter was delayed by the accused.
“The complainant has given up hope and has requested for a Section 300 order as he has paid more than R900 000 from his own pocket for the civil matter. It has been more than 10 years, and no financial compensation has been provided.”
The complainant sought a Section 300 order in terms of the Criminal Procedure Act. It makes provision for an award of compensation by the court during criminal proceedings.
Naidoo also took into account the personal circumstances of the accused, which she said were both similar.
“Both are now 51 and divorced. Both accused placed emphasis on the fact that a period of time had lapsed from the time they were first charged. But the delay was mainly due to their frivolous applications until the court forced their hand to proceed with the case in 2017. They further argued the impact of the custodial sentence on their children. However, when they committed the offence, they should have thought about the consequences of their actions on their family as well as that of the complainant.”
Magistrate Naidoo also said the accused did not show remorse.
“The court is of the view that the nature of the offence and the interest of the community far outweigh the personal circumstances of the accused,” she said.
She took note of the probation officer and correctional officer’s reports, which recommended a suspended sentence. But Magistrate Naidoo said it was merely an expression of an opinion to guide the court.
“The accused do make suitable candidates for correctional supervision.
“However, in the court’s view, this would be tantamount to a mere slap on the wrist and could send out the wrong message.
“Both accused emphasised their ill health. However, medical conditions placed on record are not out of the ordinary for persons of their age. Their reference to anxiety stems from their own criminal conduct and is not a sufficient reason for a non-custodial sentence.”
She said that focusing on the well-being of the accused, at the expense of other aspects of sentencing, such as the interests of the community, would distort the process.
Magistrate Naidoo said she understood why the complainant called for the minimum prescribed sentence of 15 years. But she said she had to take into account their age and the likelihood that they would have learnt their lesson.
She believed the accused could use prison as an opportunity to rehabilitate.
Naidoo looked at Brainwave Projects and the role they played. “It is not clear whether it has been de-registered or not and is still capable of being used by Rajbansi to conduct business as he is self-employed and is still conducting business that he did previously.”
She sentenced the accused and fined Brainwave Projects R500 000. The fine was wholly suspended for five years on condition that it not be implicated in a similar incident.
Magistrate Naidoo also ordered each of the accused to compensate Buckle an amount of R1 million.
Advocate Jay Naidoo, who represented Rajbansi, and Pretorius, who represented himself, applied for leave to appeal on conviction and sentence, but both applications were dismissed.
Speaking outside the court, Buckle said he felt relieved the matter had been finalised.
“I would have liked it if they received the full 15 years, but I suppose it’s fair. I honestly don’t think Vimal Rajbansi will make a good candidate to get out of jail because of his arrogance. He definitely deserves to be in jail, and he is going to get what’s coming to him.”
Chris Shipley, the CEO of Merchant West KZN, said an eight year sentence was too short.
“When we consider how they strung this court along for so long, it is not enough. I think justice has been served to a point in that they will serve time in prison.”