The two former joint chief executives of the now-defunct company LeisureNet Ltd, appeared in the Wynberg Magistrate’s Court on Tuesday on charges of fraud and violations of the Companies Act.
Peter Graham Gardener (53) and Rodney Mitchell (51) were arrested in March 2002.
Scorpions prosecutor Phyllis Atkinson told the court Gardener would face an additional charge of ”insider trading”.
However, both face three fraud charges, of which one relates to a violation of the Tax Act, and a contravention of the Companies Act.
Gardener faces an additional fraud charge, involving an alleged violation of the Value Added Tax Act.
Both produced bank guarantees for their R1-million bail each.
LeisureNet, which is owned the Health and Racquet Club network, was placed under final liquidation by the Cape High Court in November 2000.
Mitchell was arrested at Cape Town International Airport last year while waiting with his wife and family for a flight to Mauritius, their holiday destination.
It is alleged that the fraud, perpetrated between April and December 1999, caused the collapse of the Health and Racquet Club network.
The charge sheet gave Gardener’s address as Canterbury Drive, Bishopscourt, and Mitchell’s as Monterey Drive, Constantia.
Both have assured the court they have no intention to abscond, and will stand trial to prove their innocence.
Defence counsel John Butler — their third lawyer since their first court appearance — told the court he needed time to study the additional charge against Gardener.
At an earlier hearing, the court heard that Gardener and Mitchell had recently formed a business partnership for the sale of imported gym equipment. – Sapa