BANK FRAUD IN SOUTH AFRICA

Absa's attempt to obtain summary judgment against Cape Town's Greg Smith over a home loan dispute was summarily thrown out of court last Friday. 

Ironically, Smith spent much of his life working on advertising campaigns for various banks. Now he's seen another side of the banking world he wished he hadn't. 

What's fairly unique about this case is Smith specifically accused the bank of securitising his loan. 

This time the judge wasn’t buying Absa’s application to urgently execute and foreclose on his home.

The judgment is a searing indictment of Absa’s now infamous attempts to pass off recreated documents as something similar to the originals which, it claims, were destroyed in the hugely convenient Docufile fire of 2009  (you can read more about that here). 

There is no way to test whether these recreated documents resemble the originals because, as already mentioned…the fire. 

While the judge didn't address this, he did not like that Absa turned up in court with recreated documents instead of the originals - and told them so in no uncertain terms.

 Acts Online News » Knock-out blow for Absa in Cape High Court over securitisation accusation | Blog
 

When Kevin Radford of Germiston, Johannesburg, was summonsed by Absa in 2012 for defaulting on a home loan, he asked the bank for a copy of his mortgage bond. 

 The bank replied that the document had been destroyed in the famous Docufile fire of 2009, along with possibly hundreds of thousands of other such documents. 

Docufile runs a document storage facility in Midrand (where the fire took place) which is used by Absa and other banks to store vital documents. Nedbank and other banks are also known to have lost documents in this fire.

Since then, in possibly thousands of cases, Absa has been relying on recreated, unsigned mortgage bonds which it presents to the courts as similar to the original. There is no way to test the truth of this, since the originals – by Absa’s version of events – were destroyed in the fire.

This argument was smacked down two years ago in the Joburg High Court when Absa was seeking summary judgment against two clients, James Grobbelaar and Kevin Jenzen. Justice Roland Sutherland ruled against the bank, arguing that Rule 18(6) of the court rules requires a plaintiff to produce the relevant documents when seeking to press their case.

 Absa had not done so. “There is no doubt that a failure to annex the loan agreement constitutes non-compliance with this rule,” said Sutherland.
 

 Acts Online News » Docufile called to court to answer questions over fire that destroyed thousands of bank documents | Blog 

Absa was attempting to obtain summary judgment against the homeowners, James Grobbelaar and Kevin Jenzen, on the grounds that they allegedly defaulted on their loans. 

But when asked to provide evidence of the loan agreements, Absa produced a standard loan agreement – not the one signed by the defendants. 

 The bank claimed the original documents had been destroyed in a fire – as they have done in scores if not hundreds of other similar cases. Instead of attaching the loan agreement to its court papers, Absa relied on a so-called “standard agreement” and claimed the originals were no longer available due to a fire which supposedly destroyed thousands of bank documents in 2009.

Securitisation experts have long argued that the prevalence of fires within the Absa group is highly suspicious, particularly as these fires seem to occur with abnormal frequency whenever a client seeks to ascertain whether or not their loan has been securitised. 

Securitisation is the practice of bundling loans together and on-selling them to investors as a way of freeing up capital by the banks. In doing so, banks lose legal title to the loans and in theory cannot then bring legal action against the borrower, though they have managed to side-step the law by drawing a veil of secrecy over this activity. 

Banks typically issue a bare-faced denial when borrowers ask whether their loans have been securitised, or they demand that borrowers provide proof of securitisation - a virtual impossibility, given the banks' secrecy surrounding this practice.   

 Justice Roland Sutherland issued judgment against the bank, arguing that Rule 18(6) of the court rules requires a plaintiff to produce the relevant documents when seeking to press their case. Absa had not done so.

 “There is no doubt that a failure to annex the loan agreement constitutes non-compliance with this rule,” said Justice Sutherland. 

 Acts Online News » Smack down for Absa in Joburg High Court | Blog 

Johannesburg businessman Damon Greville defended himself in the South Gauteng High Court this week against Sasfin Bank, which shut down his 67 year-old business in 2012 and is now attempting to repossess his house. 

The judge found "substantive evidence" that the bank's legal standing was in question after Greville presented evidence of securitisation and "contradictory" accounting by the bank. 

 Acts Online News » Johannesburg businessman defends himself in court against the bank - and wins | Blog 

I was liquidated over a fictitious R7 million loan, says Durban businessman.

In what must rank as one of the most bizarre legal cases in recent times, Durban-based businessman Ian Brakspear had his family business liquidated in 2009 for a R7 million bank loan he says he never asked for or received. 

 And, he claims the signature on the liquidation order that stripped him of everything he owns has been forged. It’s not just Brakspear saying that. The police and a top-flight forensic investigator agree with him.

Either he is delusional – as the opposing attorney claims – or he has stumbled on something rotten in the justice system.

Brakspear, as you can imagine, is pretty angry at the unfortunate turn his life has taken of late. The R7 million which was supposedly loaned by Nedcor-owned Fairbairn Private Bank in Jersey to the Westley Trust, of which he was a beneficiary, is a complete fiction, he says.

“The loan never happened. It was all based on fraud. From start to finish. I’ve been cleaned out.”

Up until this point he was a reasonably wealthy man – a successful futures trader, and beneficiary of a UK brewing business established by his father. 

 Acts Online News » I was liquidated over a fictitious R7 million loan, says Durban businessman | Blog 

 For a disturbing insight into modern banking ethics, look no further than the case of Royal Bank of Scotland and its “business recovery” division, Global Restructuring Group (GRG). 

 In 2008, at the peak of the world financial crisis, GRG suddenly changed its mission from business recovery to business bankruptcy. They didn’t quite put it like that, but that’s exactly what they meant. It’s no wonder RBS has been labelled “the vampire bank.”

This is how it worked: if you were a Royal Bank of Scotland (RBS) corporate customer in need of some financial assistance from your friendly bank, your relationship manager would “suggest” that you sign up with GRG as a way to boost your business and your cash flows. 

Or they would engineer an event to force you into GRG. Suddenly, your business was subject to all sorts of additional fees, charges and obligations, and you would be sold products you didn’t really need. 

Swamped with all these additional costs, you now found yourself drowning. Then, at the first sign of trouble, your company would be placed in administration, a precursor to outright bankruptcy.

In the case of RBS, its distressed assets arm, called West Register, would purchase your company assets at fire-sale prices and sell them later on at market value. All your life’s work would evaporate before your eyes and end up on the RBS balance sheet.

In South Africa it is even easier to do. You invent a debt, forge a high court order and then lay your hands on other people’s property. 

You pick up the assets at auction at a ridiculous price and later on-sell them for a profit. It’s a ruse that has been going on for decades, and it’s stunningly simple, as Durban businessman Ian Brakspear discovered to his cost. 

Either the courts are in on this, or they lack the oversight to bring the criminal syndicates to book 

 Acts Online News » The vampire bank | Blog 

Are crime syndicates operating out of our courts? The Auction Alliance scandal appears to be just the tip of the iceberg. 

There is mounting evidence of corrupt syndicates operating out of our courts, bankrupting solvent businesses for personal financial gain, and undermining the judiciary and the Constitution.  

Legal reform campaigner Justin Lewis believes the answer to this question is an unequivocal “yes” and that the court authorities are not only aware of this, they are allowing it to continue.

The presence of crime syndicates in the court system is, to use a legal term, “common cause.” It has been whispered about in the corridors for years, but evidence was hard to come by. 

The liquidation industry, in particular, seemed to be a particularly rich source of rumours and intrigue. Then along came the Auction Alliance scandal, and the first vapours of a gangrenous infestation started to assault the nostrils. 

Was there something more here than just a bunch of auctioneers off-loading other people’s properties to their mates at fire-sale prices? Auction Alliance was found to have paid off liquidators, banks and attorneys to send them business, while simultaneously running fake auctions with ghost bidders to artificially drive up prices. 

 Acts Online News » Are crime syndicates operating out of our courts? | Blog 

Cape farmer Yvonne Oberholster's home was invaded yesterday morning by the sheriff of Somerset West and agents of KPMG Services, despite her application to the Constitutional Court for leave to appeal against her sequestration. 

She was under debt review at the time. Now she is suing the liquidators for up to R10 million. 

Yvonne Oberholster’s home was invaded yesterday morning at about 10am by a group purporting to be the sheriff of Somerset West and agents of KPMG Services, the liquidation and debt recovery arm of KPMG.

Oberholster was sequestrated earlier this year despite being under debt review in terms of the National Credit Act, which supposedly protects South Africans from sequestration proceedings. 

 Acts Online News » Cape farmer launches R10 million damages suit against liquidators after home invasion | Blog 

Maybe it's not the mortgage payments that are killing you. Maybe it's the insurance premiums buried in the monthly mortgage instalments. This is no joke. 

Three cases have come to light where home owners found themselves drowning - not because of the mortgage payments, but because of the insurance products they were sold at the time they took out the loan.

In fact, I'd go so far as to say that thousands of South Africans may have lost their homes after falling into default on their mortgage loans, when in fact what was killing them was the insurance policies they were forced to take out as part of the loan. 

One Joburg man recently woke up to this fact and when he challenged the bank, his account was credited by more than R300,000 (on an outstanding loan of R900,000).

At this point, anyone with a home loan should rush to check what insurance policies they were sold when they took out the loan. 

You might just find that the bank sold you an insurance policy without giving you a competitive choice – as required in terms of the Financial Advisory and Intermediary Services (FAIS) Act.

Joburg home owner queries his insurance policy and gets R300,000 refund

Acts Online News » Bank pays home owner R300,000 after being caught in insurance rip-off | Blog 

 You Funded Your Loan ~ Living In The Private 

How to defend your home against bank foreclosure

How to check if your bank is ripping you off

How to free yourself from debt slavery and stop paying bank interest, bank charges and collection costs

Forget debt counselling - manage your own debt and get out of slavery

How to defend yourself against the banks

Here comes the seasonal blizzard of summonses from the banks

How to stop paying illegal garnishee orders in one simple step 

 Acts Online News » Blog | Consumer Protection 

 It’s an all too familiar situation for thousands of South Africans on a daily basis: your phone rings and you nervously look at the number on the screen, instantly your stomach turns with a knot as you recognise the number and once more you are faced with the dreaded choice of answering or blocking the call. 

You know if you answer you are undoubtedly going have to face a barrage of aggressive interrogation and questions from the person on the other end. If you don’t answer you know it will only be a matter of time before the cycle repeats itself.

For many people, this kind of harassment is happening on a daily basis. Well, hang in there, because there is a way to handle this. This out-of-control debt, triggered by reckless lending by the banks and a weakening economy, is affecting more and more South Africans. 

I do not purport to be a legal practitioner and anything stipulated herein should not be construed as legal advice but more of a guide for people to educate themselves about their rights.

The National Credit Regulator and Banking Ombud are hopeless at reigning in the banks and their fraudulent behaviour. They are tasked with providing those suffering from crippling debt a mechanism against unscrupulous attorneys and debt collectors. 

The intention of the National Credit Act is to provide relief for those in financial distress by affording them an opportunity to go under debt review. There are many who argue that going this route is fatal, as it prolongs the debt trap, but the intention is laudable.

 I suggest anyone in this position takes a good, hard look before appointing a debt counsellor, but this is not the focus of this article.

What if I were to a highlight aspects of the National Credit Act and the Banks Act which may offer reprieve from debt collectors and demands made on you by legal firms for defaulted loans? 

This is something you will never hear form the legal industry, law societies, regulators or debt counsellors as they all feast off the debt collection business.

I previously conducted extensive research into securitisation and sale of debts by the banks. More recently I have been looking at another aspect of banking. As a result I have uncovered further fraudulent activity being perpetrated on a mass scale collectively by the major banks, debt collectors and legal firms across the country.

It is no secret that the major banks are selling debt to debt collection firms and legal firms. A clear and coherent determination should be made here, however, to differentiate this practice from securitisation.

In a securitisation scheme the bank bundles loans together and sells this package to the Special Purpose Vehicle for the purpose of trading this debt on the JSE (see links to articles below).

This article covers a different kind of debt, such as credit cards, overdraft facilities, revolving credit facilities and so on. Normally, these debts do not form part of securitisation schemes and are therefore reflected on the banks’ books as assets.

Bank are in the business of loaning out money at interest, but unfortunately, due to banking laws, they are required to maintain a certain level of liquid cash in the bank in order to issue more loans (in terms of the Basel banking principles and rules). 

As such to loan out more at interest you have to retrieve some levels of cash from what you lent out before to enhance the baseline cash liquidity requirements.

Realising the cost of implementing legal action against thousands of defaulting borrowers on small loans would not be worth the cost. Instead, they sell off these “bad” loan packages to debt collection and legal firms. 

The banks sell off the debt at a discount to the face value so as to leave something in the pot for the debt collectors and legal firms. The collection agencies often buy this debt for 20% or 30% of the fae value. The truth is that much of this debt is prescribed (and therefore not collectible in law), but these firms will attempt to trick you into acknowledging that the debt is still alive, when it isn’t.

It could be that a lot of the old debt you are paying off every month is prescribed, yet you continue paying due to the threats of black-listing on the credit bureaus, or worse, potential legal action.

By selling off its toxic debt to legal firms and collection agencies, the banks are receiving some cash back which allows them to rinse and repeat the whole process of reckless lending.

You are likely scratching your head now and asking…well…how does this subject help me? 

 Acts Online News » The debt collection scam | Blog
 

As always, use this info to gather more info.

Subscribe to this channel – http://www.youtube.com/c/ProperGander
Where Does Money Come From? – 

http://www.pragcap.com/where-does-mon…
Everybody Should Read This Explanation Of Where Money Really Comes From – 

http://www.businessinsider.com/where-…
Where Does Money Come From? – 

http://neweconomics.org/search/?lost=…
Where does money come from? – 

http://www.workableeconomics.com/wher…
Federal Revenue: Where Does the Money Come From – https://www.nationalpriorities.org/bu…

Where Does Money Come From? – http://www.intelligenthq.com/finance/…

Why is there so much debt? – http://positivemoney.org/issues/debt/
Money As Debt – 

http://www.zerohedge.com/news/money-debt

Banks create money as a debt – http://www.michaeljournal.org/lesson3…
Federal Reserve Explained – The Fed is Out of Control – https://www.youtube.com/watch?v=Ydjop…

New World Order – Undeniable and Verifiable – https://www.youtube.com/watch?v=b6z-K…
Fractional 

Reserve Banking Explained – Fraud Becomes Legal – https://www.youtube.com/watch?v=JobaR…
Money:

The Greatest Scam In History – What Is Money? – https://www.youtube.com/watch?v=pKmJo…
Rothschild 

Family Banking Dynasty and the International Bond Market – https://www.youtube.com/watch?v=ktIcG…
All 

Wars Are Bankers Wars – A Very Clear Pattern Throughout History – https://www.youtube.com/watch?v=RKOSK…
The 

Money Game – The Greatest Scam Ever – http://www.rense.com/general9/scam.htm

Source: http://theglobalelite.org/six-myths-about-money-and-the-banking-system/

 EXPLANATION OF SECURITIZARTION CIRCULAR 12

Affidavits from a South African expert on finance and a statistician:

AFFIDAVIT BY EXPERT ON SECURITIZATION

AFFIDAVIT ON WINDEED SEARCH

The final proof! Thanks to Ciaryn from acts.online.co.za and to Ash Davenport:

The final proof 5 out of 5 securitization audits

http://news.acts.co.za/blog/2015/06/ostrich-farmer-from-eastern-cape-shows-court-his-mortgage-loan-is-now-in-Taiwan

Another RSA Court Ruling for precedent:

http://news.acts.co.za/blog/2014/11/absa-gets-snotklapped-in-pretoria-high-court-by-womens-army

Absa lost case absolution

http://news.acts.co.za/blog/2015/11/fnb-sells-r14m-property-for-r10000-move-along

http://news.acts.co.za/blog/2015/11/busted-joburg-man-catches-standard-bank-out-over-securitisation-denial

http://www.fin24.com/Economy/SA-tops-US-France-on-Swiss-hidden-cash-report-20151001

http://www.fin24.com/Companies/Financial-Services/HSBC-tries-to-stop-naming-of-SA-rich-in-scandal-20150215

2015 How credit is created

Mortgageholders – the 10 most important questions to ask your bank

Bancorruptcy – Scott Bartle

ALL BANK LOANS ARE FRAUD

Banks & gov foreclosed worldwide

Proof of corporate gov

The RSA Deception – corporations

Scott on Bank loans