Faced with claims amounting to about R45m thus far, the man in charge of wrapping up the financial affairs of disgraced lawyer Colin Cowan, has only managed to recover R7m. Cowan, once a well-respected attorney in Durban, committed suicide in November 2010, his death uncovering large-scale fraud he committed while working as a consultant at law firm Garlicke & Bousfield, notes a Times Select report.

While some of his victims have lodged claims against his estate – which is being handled by insolvency practitioner Rahim Khan – others have filed claims in the courts against the law firm, the first of which will begin in the KZN High Court (Pietermaritzburg) on Tuesday.

In essence, the claimants say they handed over millions of rands to Cowan to be used in a ‘bridging finance scheme’ which he operated from the firm’s premises.

They were given letters of undertaking signed by some of the directors of the firm. Many eyes will be focused on local businessman Merlin Stol’s claim for R7m. His attorney, Dave Randles, said there were several other cases ‘waiting in the wings’.

Randles said he had other matters totalling about R11m. Two other attorneys confirmed they had claims totalling more than R50m. Garlicke & Bousfield has successfully managed to join other parties to the litigation, including its auditors Deloittes, local financial adviser Patrick Robert who is said to have allegedly helped Cowan in signing up investors, and PKF Durban, an audit company allegedly involved in managing elements of the scheme.

They all deny liability.

Full Times Select report