He was was found guilty of misappropriating approximately R39.8 million from an escrow account entrusted to his care.
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An 82‑year‑old former attorney has been sentenced to 10 years’ direct imprisonment after the Specialised Commercial Crimes Court sitting in Palm Ridge convicted him on 290 counts of theft and money laundering.
Solomon Slom, a former senior partner at Fluxmans Incorporated, was found guilty of misappropriating approximately R39.8 million from an escrow account entrusted to his care.
Jail
The court sentenced him to 10 years’ imprisonment for the theft convictions and 10 years’ imprisonment for the money laundering convictions. The sentences will run concurrently, resulting in an effective sentence of 10 years.
The court heard that in 2018, Fluxmans Incorporated acted as the escrow agent under a subscription agreement and escrow agreement concluded among several parties.
In accordance with these agreements, R45 million was deposited into an escrow account administered by the law firm, pending the fulfilment of specific contractual conditions.
Dispute
Following a dispute between the contracting parties, the funds were required to remain in the escrow account until the dispute had been resolved.
National Prosecuting Authority (NPA) spokesperson Magaboke Mohlatlole said investigations revealed that approximately R39.8 million had been unlawfully removed from the escrow account through 145 fraudulent transactions authorised by Slom.
“The fraudulent payment requisitions directed the funds into a bank account over which Slom held power of attorney, despite the account having no connection to any of the parties to the escrow agreement,” Mohlatlole said.
Evidence presented in court further showed that Slom used the funds for his personal benefit, causing the complainant financial prejudice of R39.8 million.
Senior State Advocate Pretty Mabunda successfully proved that Slom unlawfully appropriated funds entrusted to him in his professional capacity and intentionally concealed the proceeds through a series of fraudulent transactions.
“The court accordingly found him guilty of both theft and money laundering,” Mohlatlole said.
Mohlatlole added that the NPA welcomes the conviction and sentence, which demonstrate that individuals entrusted with safeguarding others’ financial interests will be held accountable when they abuse that trust.
“This successful prosecution reaffirms the NPA’s commitment to combating serious commercial crime, protecting the integrity of the legal profession, and ensuring that perpetrators of financial crimes face the full might of the law,” he said.
