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Rael Levitt

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This is an old revision of this page, as edited by HenryHunterZA (talk | contribs) at 12:29, 26 March 2022 (Incorporate details of 86 page forensic report prepared by auditor Allan Greyling and Accounts at Law at the behest of the board of Auction Alliance). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Rael Levitt (born 10 May 1971) is an entrepreneur, business owner, and business leader from South Africa. He was found guilty by the National Consumer Commission of ghost bidding and fraud while managing Auction Alliance,[1][2][3] and admitted to auction rigging.[4] He is currently the CEO of Inospace, a commercial real estate company dealing in retail, office, and industrial space. [5]

Career

Rael Levitt founded multiple real estate, investment and asset management companies. He is best known for developing both auctions and business parks in Southern Africa.[6] He began his career with his first property sale at the age of seventeen and the formation of Levco Property in 1989.[6] In 1992, he founded his first property company, Levco Group.[7] Levitt was responsible for most of South Africa’s most high-profile property sales including the assets of Freddie Steenkamp and politician Allan Boesak’s Foundation of Peace and Justice. In 1995, Levitt sold Levco to Seeff Holding's Chairman, Lawrence Seeff, and after acquiring Boland Bank’s auction arm, became the Managing Director of Seeff Auctions.[8] Levitt was named Chairman of the South African Institute of Auctioneers and was inducted into its Hall of Fame.[9]

After the delisting of Seeff Holdings Ltd in 1998, Levitt completed a management buyout, renamed the company Auction Alliance and became its CEO.[10]

The company opened in several cities, including Pretoria, Johannesburg, Durban, Port Elizabeth, Nelspruit, Upington, Windhoek and Dubai (United Arab Emirates).[11] Auction Alliance became South Africa’s largest auction house.[12] Levitt also started several other companies including Salesbid, Asset Alliance, Alliance Business Brokers, Alliance Finance, and Valuation Alliance.[13] Levitt acquired several real estate, management and valuation companies.

Levitt developed the auction industry in South Africa by various approaches including Multiple Auctions[14] and the development of the RAP (Rapid Auction Programme).[15] In 2006 Auction Alliance sold a 25.1% stake to Amabubesi Investments[16] and in 2010 a 31% stake to Transaction Capital.[17] By 2010 Auction Alliance's turnover was over R300 million,[18] with sales of over R6 billion.[citation needed]

In 2013, Levitt acquired Bonathaba Farms, a bankrupt pomegranate orchard, and by 2015 it became South Africa's largest pomegranate fruit exporter.

In 2017 Levitt founded Inospace, an owner and manager of serviced business and logistics parks.[19] Inospace became the largest owner of business parks and centres in South Africa and in 2020 launched its 25th site in the United Kingdom. Under Levitt, Inospace grew to over 45 sites by 2021 with a market value of close to R2Billion.

Dispute at Auction Alliance

In 2011, a dispute arose over a property that Levitt brought to public auction.[20] The dispute was covered extensively in the media, and Levitt stepped down as CEO of Auction Alliance and as a board member of the national auction association. [21]

He was accused by the National Consumer Commission of bid-rigging and activities that could be construed as fraudulent including falsifying bidding records, planting a ghost bidder, and knowingly provided false information regarding the incident.[22] A forensic investigation by Auction Alliance found that he colluded with attorneys, auctioneers, banks and liquidators in a money making racket paying millions of rands in bribes.[23][24]

He went into hiding, publicly admitted to making mistakes and issued an apology subsequent to the allegations. Levitt said: "I made some mistakes at that auction and I am sincerely sorry about them."[25]

The National Consumer Commission eventually found Levitt guilty of bid rigging and fraud[26], although he was never charged in a criminal trial. [27][28][29]

Philanthropy

Levitt organized and conducted charity auction events between 1992 and 2012, raising over R250 million for various charities including the Nelson Mandela Children's Trust.[30] Many of the country's leading auction fundraisers in South Africa were trained by him under his "auctiontainment" brand. Levitt was appointed as trustee of the Rambam Trust, and founded the Tsojana Trust,[31] which built schools and educational facilities in the rural Eastern Cape of South Africa. He has served on the boards of various other charitable institutions including the Glendale Home, the United Jewish Campaign and the Edom Trust.

Religious affiliation

Levitt is a member of the Cape Town Jewish community. He was executive committee member of South Africa’s largest synagogue, Green and Sea Point Hebrew Congregation. In 2010 he was appointed as the Chairman of YAD[clarification needed] and sat on the board of the United Jewish Campaign.[32]

Awards and recognition

Levitt was the recipient of the South African Jewish Entrepreneur of the Year Award in 2008,[33] and was a finalist for the South African Ernst and Young World Entrepreneur competition in 2011. He also won the USA Today National Auctioneering Association’s annual awards several times.[34]

References

  1. ^ "Auction Shock".
  2. ^ "The future bears more pain for Auction Alliance". 4 March 2012.
  3. ^ "Auction boss found guilty". www.iol.co.za.
  4. ^ Geldenhuys, Henriëtte. "Levitt admits rigging auction". www.iol.co.za.
  5. ^ "The origins of Inospace - A property company growth story". Bizcommunity.
  6. ^ a b "On the fall of the hammer". The South African. 10 August 2013. Archived from the original on 10 December 2013.
  7. ^ "Realised vision. WHAT IT MEANS".
  8. ^ http://investing.businessweek.com/research/stocks/private/person.asp?personId=595605&privcapId=595604&previousCapId=595604&previousTitle=Industrial%20Consumables%20Exchange
  9. ^ "The South African Auctioneering Conference". SAIA Events. 13 March 2011.
  10. ^ "Business Day". Retrieved 17 December 2018.
  11. ^ "Auction Alliance expands to United Arab Emirates". Eprop.co.za. 13 March 2011.
  12. ^ "Auction Alliance employees turn bosses". Property24. 28 December 2012.
  13. ^ "South Africa: Property Boosts Auction Industry". All Africa. 2 December 2005.
  14. ^ "Cut-price commissions at "jumbo" property auctions". Money Web. 12 May 2009. Archived from the original on 10 December 2013.
  15. ^ "Netassets.co.za".
  16. ^ "Major BEE deal signed under Property Charter". 4 May 2006.
  17. ^ Kamhunga, Sure (16 July 2008). "Transaction Capital acquires 31% of Alliance". BusinessLIVE. Retrieved 6 August 2012.
  18. ^ "Auction group may face fine of R30m".
  19. ^ "Auction Alliance's Rael Levitt returns to property arena". BusinessLIVE. Retrieved 3 May 2019.
  20. ^ "The bidder who smelt a rat | Saturday Star". www.iol.co.za. Retrieved 29 August 2019.
  21. ^ "Levitt quits auction body | IOL News". www.iol.co.za. Retrieved 3 May 2019.
  22. ^ "Levitt faces fine over dodgy deal". TimesLIVE.
  23. ^ "Auction kickback scandal revealed". News24.
  24. ^ "Exposed: Rael Levitt's kickback racket".
  25. ^ "Rael Levitt admits career gone and says sorry". SA Commercial Prop News.
  26. ^ "Auction Alliance boss wins court case". Fin24.
  27. ^ "Rael Levitt not found guilty of fraud". Moneyweb. 2 April 2012. Retrieved 3 May 2019.
  28. ^ "Levitt and Others v National Consumer Commission and Another (7708/12) [2012] ZAWCHC 93 (18 June 2012)". www.saflii.org. Retrieved 29 August 2019.
  29. ^ "Auction Alliance (Pty) Ltd and Another v Minister of Police and Others (8324/2014) [2014] ZAWCHC 180 (3 December 2014)". www.saflii.org. Retrieved 29 August 2019.
  30. ^ "R50 000 for sperm bank but no deposits". IOL. 25 August 1999.
  31. ^ "Rael Levitt - Biography". Archived from the original on 7 August 2013. Retrieved 10 December 2013.
  32. ^ "New chairman at the head of YAD" (PDF). Cape Jewish Chronicle. Vol. 28, no. 2. March 2011. Archived from the original (PDF) on 23 September 2015.
  33. ^ "Capetonians shine in Achiever Awards" (PDF). Cape Jewish Chronicle. Vol. 25, no. 7. August 2008. Archived from the original (PDF) on 21 November 2008.
  34. ^ 2011 NAA - USA TODAY Marketing Competition Winners Archived 12 March 2014 at the Wayback Machine, 11 May 2011
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