Mungo Soggot and Belinda Beresford
Magnus Heystek is fighting a summons from a businesswoman after he allegedly breached the terms of an out-of-court settlement for more than half-a-million rand.
Last year the financial guru settled with Beulah Bonugli for the full R655 000 she had demanded. The dispute stemmed from a share deal he had executed through his stockbroker allegedly on her behalf.
Before settling, Heystek presented a defence to her lawsuit which appears to differ from versions offered by his stockbroker and Bonugli. On Heystek’s version, contained in a three-page plea with no dates attached to the transactions, there was no paper trail to substantiate his defence.
Bonugli’s long-running dispute with Heystek started when she asked him to sell about R1-million of shares in listed company Kohler. Instead of depositing the full proceeds of the share sale in her bank account, Heystek transferred only R440 000.
Bonugli issued summons against Heystek for the outstanding R655 000. According to Heystek’s defence plea, Bonugli gave oral instructions to use the outstanding proceeds of the Kohler share sale to buy 100 000 shares in Armato. Both Heystek and his stockbroker insist Bonugli spoke to them about the Armato shares, but their accounts of the transactions differ.
Bonugli’s lawyers, Brown Rachbuch, say their client had never instructed Heystek to buy Armato shares of which she had “never heard”. Attorney Howard Brown confirmed “certain” Armato share certificates had been sent by Heystek’s office.
Brown added that, according to a stockbroker’s note in his possession, the Armato shares in question had been issued in Heystek’s name before Bonugli had told Heystek to sell her Kohler shares. The broker confirmed Bonugli had obtained a note.
This week Heystek said the shares had been bought before Bonugli requested the sale of her Kohler shares: “I had already bought the Armato shares. When I spoke to her I said I had bought some Armatos and had made some money, and did she want to take them over. She was quite happy while the shares were going up.”
It is difficult to reconcile this version with Heystek’s claim that the Armato shares were registered in his name because his broker “made a mistake. I told him they were for Mrs Bonugli, but he registered them in my name. And I was not aware of it until later. It was quite embarrassing.”
Heystek’s broker, Neville Stevens-Burt of BP Bernstein, agreed he had made a mistake. But he was adamant the Kohler shares were sold before the Armato shares were bought.
“The Kohler shares were sold on her behalf and the Armato shares were bought in Heystek’s name on her behalf … We often buy and sell shares for his clients on his dealing accounts … For people who are one- off traders, we don’t go opening up accounts because it is a very expensive process to go through … We sold the Kohler brothers shares first … We needed funds to buy them.”
Heystek disagreed with Bonugli’s statement that she had never heard of Armato, saying she had spoken to his broker about the shares. “Let’s just say we have a difference of opinion … But I didn’t want to get into a fight, so I took the shares and gave her the money. End of story.”
Heystek has been hit with the latest summons after allegedly failing to meet the terms of his original settlement. Bonugli had agreed to waive one month’s interest on the settlement, providing he paid within a month. After he failed to do so, her lawyers served summons on Heystek for about R11 000 of interest.
Heystek said : “I took advice from my attorney. I paid the full amount. I came back three days later. My attorneys say they are being ridiculous. I thought that was the end of it.”