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Bloemfontein - The effective prison sentence of convicted fraudster Jeff Levenstein, founder and CEO of Regal Bank, was reduced by the Supreme Court of Appeal on Tuesday.
Levenstein, who was initially sentenced to an effective 14 years' imprisonment and a fine of R500 000 for fraud, will now serve an effective eight years in prison.
On Tuesday, the SCA partially allowed Levenstein’s appeal in a majority judgment.
Levenstein was CEO of Regal Bank, a financial institution which collapsed in 2001 and was placed into liquidation in 2004.
He was charged in the Johannesburg High Court on eight counts - six of fraud and two under the Companies Act.
He was eventually convicted on all counts and effectively sentenced to 14 years’ imprisonment and a fine of R500 000 against which he lodged an apeal with the SCA.
On Tuesday, the court in a majority judgment, held Levenstein had been incorrectly convicted on three charges, two of fraud and one of having contravened the Companies Act.
The majority also held the trial court had misdirected itself in regard to the imposition of sentence and that it was at liberty to impose a new sentence.
The minority judgment, by two members of the court, expressed satisfaction that Levenstein had been correctly convicted on all counts and that interference was not justified in respect of the sentence imposed by the trial court.