One of the alleged masterminds in the Fidentia scandal was arrested by the Federal Bureau of Investigation in the United States, the National Prosecuting Authority said on Tuesday.

Spokesperson Tlali Tlali said Steven William Goodwin was arrested following a request by the Directorate of Special Operations (Scorpions).

According to the NPA Goodwin was detained on Saturday at Los Angeles airport by US authorities and the Customs and Immigration Department.

"Their intervention followed an alert issued by Interpol that Goodwin was en route to the USA and that a warrant for his arrest had been issued in SA in July 2007.

"Goodwin left SA for Australia in early February 2007, following the appointment of a curator to manage the Fidentia group of companies and before the Scorpions investigation was authorised in February 2007," said Tlali.

The ‘real founder’ of Fidentia

Goodwin was described as the ‘real founder’ of Fidentia and has been named repeatedly in a draft indictment against J Arthur Brown.

Goodwin left South Africa just days before Brown was arrested in March last year.

The draft charge sheet says that at the time Goodwin owned and was managing director of a company named Worthytrade 185.

Acting as a broker, he initiated the contact that resulted in Teta entrusting promissory notes worth R100.3-million to Maddock Incorporated in April 2003.

The NPA had 60 days within which to apply for Goodwin's extradition and was preparing papers to launch such an application, said Tlali.

"The Scorpions are currently working with the US Department of Justice to ensure the matter is resolved speedily and successfully. Once on SA soil Goodwin will face charges of theft, fraud and corruption running into millions," he said.

Providing a R6-million bribe

The charge sheet says Brown acted "in the execution of a common purpose" with Goodwin in providing a R6-million bribe to ensure that the Teta board made the investment with FAM.

Goodwin is also named repeatedly in the section of the charge sheet that deals with money laundering.

Brown will go on trial in September on fraud and theft charges.

The financial director of Fidentia, Graham Maddock, was effectively jailed for seven years on 54 counts involving fraud, theft, money laundering, contraventions of the Financial Intelligence Centre Act and the reckless or fraudulent conduct of business.

Sapa