Exotic car dealer off the hook in fraud case
A Cape Town car dealer who was accused of fraudulently selling a bank-financed exotic car, without informing the bank first, stepped out of the dock of a court a free man.
|||Cape Town - A Cape Town car dealer who was accused of fraudulently selling a bank-financed exotic car, without informing the bank first, stepped out of the dock of a court a free man on Thursday.
Khatib Mahmoed, 42, of Athlone, appeared in the Specialised Commercial Crime Court in Bellville, where the prosecutor, senior State advocate Ezmarelda Johnson, informed magistrate Sabrina Sonnenberg that the fraud charge was withdrawn.
The magistrate told him he was free to go.
The charge sheet had cited his company, High End Exotics, as accused number one, and Mahmoed himself as accused number two.
The company itself was found guilty of a violation of the National Credit Act, and was fined R30 000.
The fraud charge against both Mahmoed and the company was withdrawn, after defence attorney Mushtak Parker made representations to the head of the Specialised Commercial Crime Prosecuting Unit, deputy director Malini Govender.
The fraud charge alleged that Mahmoed and the company sold an exotic car to a customer, who wanted it as a gift for his wife.
According to the charge sheet, the company advertised a 2011 model red Audi R8V-10 Tronic Spyder for sale in June, 2013, and was offered R1,5 million for it.
Soon afterwards, the buyer wanted confirmation that the car was unencumbered, and asked in whose name the car was currently registered.
He was incorrectly informed by staff that the car’s Natis registration documents were in the name of MK Exotic Cars.
In fact, the car still belonged to a bank, and R1 422 816 was still owing on it.
Parker explained to ANA that the sale of bank-financed cars, whilst they were still encumbered – without the bank’s permission - was illegal, but common in the motor trade.
To avoid the consequences of the transgression, dealers settled the outstanding amount immediately after the purchase price was paid by the new buyer.
In this case, however, the buyer withdrew from the transaction before it was finalised, Parker said.
He said Mahmoed was in fact out of the country when the deal happened, and could not stop it, to prevent the transgression.
African News Agency
* Use IOL’s Facebook and Twitter pages to comment on our stories. See links below.