Ex-finance agent unable to pay debt

THE Port Elizabeth High Court has granted a provisional sequestration order against a former financial consultant who had been paid R1.7-million to lure him away from his previous employer.

The application for final sequestration will be heard next month.

The consultant, James Stern of Walmer, did not make the grade with Old Mutual and, following a complaint from a client and a forensic investigation, was debarred just a year after starting the job.

Because the agreement between Old Mutual and Stern was terminated in under three years, the company demanded immediate repayment of the once-off establishment and restraint fee paid to him.

According to court papers, it also demanded R67734 in respect of a debit balance on his commission account with Old Mutual and R192130 under a deed of suretyship signed in 2006 when Old Mutual concluded a broking agreement with Stern's previous firm, Quantum Investments.

In addition, Old Mutual is claiming damages against Stern, yet to be quantified, for losses suffered and costs incurred "as a result of his conduct which culminated in his debarment".