The managing director of PSC Guaranteed Growths Limited Funds, Jack Milne, was sentenced to an effective five years’ imprisonment by the Johannesburg Regional Court on Tuesday in a fraud case involving R160-million.
Three years of his eight-year sentence were suspended in terms of a plea-bargain agreement.
Milne (50) pleaded guilty to charges of fraud, corruption and share manipulation. He was arrested as part of a larger investigation into fraud involving Tigon Limited boss Gary Porritt.
Originally charged together with Porritt in respect of the fraud, Milne has turned state witness and will testify against Porritt as part of his plea bargain.
In documents his attorneys presented in court, Milne, a father of five children, named Porritt as the mastermind in the fraud case.
He said while investors lost millions of rands, he did not make any money out of the scheme, which included manipulating the company’s share prices.
Milne acknowledged in court documents the crime fell under the Minimum Sentence Act and 15 years’ imprisonment could be imposed.
His legal representative, Advocate Max Hodes, SC, told the court his client had gone out of his way to assist unravelling the fraudulent scheme behind the creation of PSC Guaranteed Growths.
”My client also articulated how funds were allocated and misappropriated. Mr Milne stated there was a hidden agenda to the establishment of the company.”
In terms of the sentence, Milne could be out of jail and under house arrest on correctional supervision in less than a year.
Magistrate Zac Machobane made an order that Milne could be considered for house arrest after serving a fifth of his jail term.
Certain sentence deductions were expected to be made in conjunction with the upcoming general election, he said. — Sapa