His high life was funded by ‘a terrible mistake’
● He drove a Porsche, lived on a posh housing estate, co-ran a thriving restaurant and was a popular figure at charitable events.
But Durban chartered accountant Gareth Ducler was leading a double life. Behind the scenes, he was dipping into clients’ bank accounts and, when the game was up, admitted that he had stolen more than R29m.
About R21m was taken from the deceased estate of Roy Ekstein, who made his fortune in the shoe business and was the first chairperson of Gold Circle Horse Racing & Gambling. The rest came from entities linked to Ekstein, including his trust and a company, Topspec Investments.
Damon Pronk, also a CA and Ducler’s partner in their accountancy practice in Hillcrest, Durban, blew the whistle on the alleged theft earlier this year.
Following an application to the high court in Durban, their firm, Finance Spec CC, was liquidated. Pronk said he and Ducler had both qualified as CAs in 2008 and were friends before setting up business in 2012. They had more than 1,000 clients.
Pronk said in court papers that Ducler, who co-ran a franchise restaurant in Hillcrest with his father, Chris, was extravagant, “but I accepted that because he was a very successful accountant”.
Early this year a staff member told Pronk she’d heard rumours that Ducler had misappropriated large sums of money.
“He said it was malicious rumours spread by his estranged wife,” said Pronk. “He said the rumours were related to that fact that he was working on the Ekstein account, which had previously been ripped off by attorney Colin Cowan, who ran a Ponzi scheme.”
Pronk still felt unsure and contacted a trustee of the Ekstein estate, Harry Spain. They agreed to meet in February.
“Shortly before, Ducler called me. He admitted that he had stolen the money and was in the process of repaying it by selling his shares in property companies, selling his house in the gated Cotswold Downs estate and repatriating R8m, which he had moved to Mauritius,” said Pronk.
Pronk said he was “shellshocked”.
Then he noticed that Ducler began raiding the firm’s bank account, withdrawing more than R100,000.
Pronk began disciplinary proceedings against Ducler, who failed to attend an inquiry. He was found guilty and dismissed.
But the account raiding continued. Pronk said Ducler went behind his back to clients, advising them to pay fees directly into a bank account that he controlled.
In a letter to staff in March, Ducler wrote: “I have made a terrible mistake but I am in the final stages of reaching a financial settlement with the aggrieved party.”
I have made a terrible mistake but I am in the final stages of reaching a financial settlement Gareth Ducler
In a letter to clients, he admitted he had “misappropriated funds”. He said he had been “out of my depth suddenly controlling large sums of money” and suggested that his clients remain with him.
The firm is now in liquidation, an order that Ducler is not opposing. Lists of creditors are being drawn up.
Ducler did not respond to questions, and e-mails to his father were ignored.
Pronk has launched another high court application asking for an order setting aside a subpoena, initiated by the Ekstein group, ordering him to testify at an interrogation of the finances at Finance Spec.
He said the group was not a creditor of the firm and that it owed the firm money (in fees).
But those managing the Ekstein group are opposing his application and the matter is expected to be set down for argument soon.
Spain, in his affidavit, said: “We expected nothing but the highest degree of honesty and reliability from Pronk and Ducler. It appears our confidence in Ducler, and possibly Pronk, was totally misplaced.”
He said the interrogation was necessary to find out exactly what was owed and to whom.
Andries Geyser, an attorney who represents the Ekstein group, said criminal complaints were currently being formulated against Ducler.