Machanik trial lawyer change hitch
Category News
On Thursday former property doyenne Wendy Machanik and her lawyer Cyril Ziman appeared in the Commercial Crimes Court where the attorney withdrew his services because Machanik can no longer afford his fees.
Machanik and her financial adviser, Bruce Bernstein, are facing charges of fraud to the tune of R28 million.
At every court appearance her lawyer Cyril Ziman has been by her side. But this time the attorney was there to withdraw his services because Machanik can no longer afford his fees.
"Because of a lack of funds by accused number one (Machanik), my mandate has been withdrawn," said Ziman.
He will still be acting for Bernstein.
Machanik's legal woes are not so far gone that she cannot afford an attorney, however.
A new attorney, Michael Salomon, and advocate, Sam Cohen, will now be acting on her behalf.
Machanik is alleged to have dipped into trust accounts and embezzled more than R28m of clients' money.
She was once known as the best estate agent in SA. Last year she had to auction off her home and her company is under liquidation.
The luxurious Athol home - boasting four bedrooms, a chef 's kitchen, a scullery, walkin cold room and a Zen bathroom - was sold to a businessman for R7.8m.
A liquidator's report last year indicated that Wendy Machanik Properties (WMP) had a shortfall of more than R16m. The report, which estimates the shortfall from preliminary investigations, was sent to estate agents who worked for the agency.
In the report sent out by liquidator D&T Trust, estate agents, which are named as preferent creditors (creditors who are paid first), have been told they will each be paid R12 000 in salaries owed to them.
This does not include their commission from houses sold, which has been placed in a trust account and will be paid to them as concurrent creditors (creditors who are paid last, if there is any money left).
The report shows that WMP had encumbered assets - or book debts owed to banks - of more than R21m. Secured creditors are claiming R6m, and preferent creditors, including Sars and staff, are owed R5.5m.
Concurrent creditors are claiming R26m, which includes claims from Machanik herself under members' loans and inter-company loans.
Machanik will return to court next month.
