Coal mine owner alleges R1m trust fund theft by law firm

A JOBURG law firm is facing serious allegations of the theft of trust fund money following a complaint laid against it by a mining boss.

A few months ago, businesswoman Luda Roytblat filed papers in the high court in Joburg against BDK Attorneys, accusing it of theft of more than R1 million.

BDK has recently paid some of the money. The firm has denied any wrongdoing.

Roytblat, who owns two coal mines, opened a case of fraud and theft against the law firm and also reported it to the Law Society after she tried in vain to recoup R1m she had transferred into the BDK trust account.

Roytblat said she appointed BDK to represent her when one of her companies, Transasia 1, entered into a contract with Umsobomvu Coal to acquire its mining prospects. She later decided to stop using BDK after her relationship with the law firm broke down.

“As part of the transaction with Umsobomvu Coal, I transferred the funds into the trust account of BDK Attorneys,” she said. This money was to be invested on behalf of Transasia 1, she added.

Roytblat said the law firm acknowledged receipt of the money, and it was to be paid to Umsobomvu Coal when ministerial consent for the transfer of certain minerals rights to Transasia 1 had been obtained.

But then she decided not to use BDK anymore and asked for her money back.

“I had become dissatisfied with the nature and level of professional service I was receiving from them. There was no response,” she said.

On February 17, Roytblat wrote to BDK Attorneys requesting them to transfer the money to the legal firm she had appointed.

Roytblat said a month later, BDK Attorneys wrote to her lawyers, stating that they were “exercising a lien” over the money for outstanding fees owed by another of her businesses, Transasia Minerals SA.

Roytblat disagreed with this, saying Transasia 1 and Transasia Minerals SA were separate clients, and that no work had been done on behalf of Transasia 1.

“BDK Attorneys have no right to withhold this money, especially after I had informed them that I was able to pay them for all work done in respect of Transasia Minerals SA, provided they have their bill taxed. They have failed or refused to have the said bill taxed,” Roytblat said.

BDK director Rudi Krause said: “BDK Attorneys have acted professionally, ethically and properly at all material times.”

Krause said Transasia Minerals SA refused to pay BDK Attorneys for the legal professional services rendered. “In fact, Transasia stated in writing that BDK Attorneys must issue summons against them if we want to be paid.”

He said the law firm decided to withhold the funds after it became apparent it wouldn’t be paid for services rendered. “I am not prepared to disclose the amounts, save to say it is substantial,” Krause said.

BDK Attorneys’ high-profile clients include Czech businessman Radovan Krejcir and first lady Nompumelelo NtuliZuma, who hired BDK to deal with allegations that she is being investigated for trying to poison her husband, President Jacob Zuma.