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robt
04-02-2012, 03:35 PM
Auction Alliance staff are leaving the company in droves and others who are still there have been given a month’s notice and been informed that the company is winding up its affairs.

This follows hot on the heels of the National Consumer Commission’s ruling last week which found company founder Rael Levitt had used “ghost bidder” Gideon Leygonie to bid against Wendy Appelbaum, contravening Section 45 of the Consumer Protection Act.

Levitt is in Israel but is expected to return to SA this month.

The Cape Argus has reliably learnt that some Auction Alliance staff were retrenched on Friday, that others were given a month’s notice and that the company was winding up its affairs and will be closing down.

http://www.iol.co.za/business/companies/auction-alliance-staff-going-gone-1.1268684

Wow that was quick - almost as fast as their auctions :).

I'm quite surprised that the company folded. I thought after Rael resigned it would still chug along albeit at a slower pace.

robt
04-02-2012, 03:38 PM
On Friday the National Consumer Commission laid bare its findings on allegations of bid rigging and fraud against Levitt and his company.

Levitt could face a year in prison or a R1 million fine. If the company is found guilty of transgressing the Consumer Protection Act, it can expect to receive a hefty fine equivalent to 10 percent of its annual turnover.

Last year, AA recorded turnover of R300m, based on asset sales to the tune of R6 billion, according to an affidavit signed in February by Levitt, founder and former CEO of the company.

Didn't realise Levitt could face jail time and the figures involved are quite hefty - 10% of R300 million is nothing to sneeze at.

McT
04-03-2012, 06:40 PM
So Rael Levitt was Auction Alliance then... or so it seems. It's his staff, the innocent only, for which I feel sorry. I have no time for corruption, so Rael will get what's due to him.

peterson
04-04-2012, 10:17 AM
Why did Auction Alliance have to get into this type of stuff? They were surely making enough money?

robt
04-04-2012, 05:57 PM
Why did Auction Alliance have to get into this type of stuff? They were surely making enough money?

I think people get greedy and want more and more money. Or perhaps this auction business just attracts those types of people who like to take chances and cut corners.

Bottom line it's back for all auction houses as people will trust them less now.

McT
04-04-2012, 06:56 PM
Why did Auction Alliance have to get into this type of stuff? They were surely making enough money?

It might be a case that they weren't making the money 'conventionally' and had to rig it to get more into it, or just simply greed. As they say, the love of money is the root of all evil.

McT
04-04-2012, 06:58 PM
Bottom line it's back for all auction houses as people will trust them less now.

100% agreed. It's going to take an awful amount of work and PR to get their image out of the pig manure and the trust of their consumers.

John
04-05-2012, 12:51 PM
It's going to take an awful amount of work and PR to get their image out of the pig manure and the trust of their consumers.If it is at all possible. How will people trust them again? Why not just use another company?

peterson
04-11-2012, 11:39 AM
I see Levitt did not show up for the hearings ... Warrant for his arrest issued.

robt
04-11-2012, 05:54 PM
Yup he's in Israel. Wonder if he's having a bit of a kuier with Mr Dealstream? :D

McT
04-11-2012, 07:46 PM
Surely the authorities should have foreseen him taking flight? I mean they clipped Wendy Machanik's wings before she could gap it.

Do we have an extradition treaty with Israel?

peterson
04-12-2012, 12:33 AM
Do we have an extradition treaty with Israel?I do not think so - http://mybroadband.co.za/vb/showthread.php/146971-Extradition-treaties

robt
04-12-2012, 06:37 PM
To the best of my know no extradition treaty. lastest news is he missed a court hearing with the national consumer commission (I think?). So he has 14 days to appear or the SAPS get involved.

McT
04-12-2012, 08:53 PM
Heard on radio news this afternoon that he is in the US :confused:

peterson
04-16-2012, 11:18 PM
I see he is becoming very sorry about what has happened.

McT
04-17-2012, 08:05 AM
I see he is becoming very sorry about what has happened.

But still not making plans to come back yet.

robt
04-20-2012, 02:30 PM
I see he is becoming very sorry about what has happened.

If he's so sorry he must come back and face the music :).

I'm tired of reading about these businessmen who face finacial difficulties and then duck out when it gets tough.

I bet right now he's saying ... now that I have no money all my friends have gone. Not so true mate - it was when you ducked out of the country without telling anyone why that you lost your friends. You've gotta be accountable.

McT
04-20-2012, 07:28 PM
He is extremely unlikely to come back if there's any prospect of jail/trouble.