South African businessman Antonio Iozzo has threatened to sue the state after prosecutors withdrew fraud charges arising from a family trust dispute involving alleged lost returns of approximately $50 million.
The National Prosecuting Authority withdrew the case against Iozzo, Alpha Group chief financial officer Werner Roets and attorney Abraham Johannes van Rensburg on September 1.
Iozzo said he intends to claim substantial damages for the financial and reputational harm allegedly caused by the investigation, arrests and police statements.
*Business Day* reported the withdrawal and Iozzo’s proposed action.
The amount he intends to seek from the state has not been disclosed in a court filing.
**The accusations behind the case**
The criminal allegations developed from an ongoing dispute involving Iozzo, his older brother Nicola and former childhood friend Gregory Hutchinson.
Police accused Iozzo, Roets and Van Rensburg of forging signatures and using false documents to remove three family trusts from an umbrella investment trust.
Investigators alleged that the action caused the complainant to lose approximately $50 million (R800 million) in financial returns.
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That figure is an allegation about lost returns. It is not proven stolen money and should not be described as the confirmed value of the trusts.
The three men handed themselves over to police and were each released on R50,000 bail.
They did not enter pleas before the prosecution was withdrawn.
**Iozzo says the case should never have reached court**
Iozzo said documents provided to investigators disproved the allegations against him.
He claimed police failed to consider that information properly and should not have announced the arrests publicly.
His lawyers previously approached the High Court for an urgent order requiring the South African Police Service to withdraw its statement about the case.
Iozzo said a review of the complaint and the documents he supplied showed there was no evidence of wrongdoing. That is his description of the review’s outcome.
The NPA has withdrawn the prosecution but has not published detailed reasons declaring every accusation false.
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The police and prosecutors should be invited to respond to Iozzo’s allegations before publication.
**Withdrawal is not the same as an acquittal**
The withdrawal ended the immediate prosecution, but it was not an acquittal following a trial.
No court heard witnesses, tested the disputed documents or delivered a judgment on the allegations.
Prosecutors may withdraw a case when they conclude that the available evidence does not provide a reasonable prospect of conviction. They may also withdraw while further evidence or legal issues are considered.
The NPA must clarify whether the decision is final and whether charges could legally be restored if new evidence emerged.
The withdrawal also does not resolve the underlying private disagreement concerning the trusts.
Civil litigation over ownership, investment returns or documents can continue even when prosecutors decide not to pursue criminal charges.
**The businesses behind Iozzo’s wealth**
Iozzo leads Alpha Group, a privately held collection of businesses covering insurance, property, hospitality and fitness.
He founded underwriting manager Alpha Insure and owns Body Action Gym, Uber Property Developments and the 11th Floor rooftop restaurant and cocktail bar.
Some South African publications describe him as a billionaire.
That description appears to refer to wealth measured in rand. No publicly accessible assessment establishes that he is a US-dollar billionaire.
“*Businessman*” or “*tycoon*” is therefore more defensible for an international audience.
**A second legal battle could now begin**
Iozzo’s threatened action against the state would be separate from the withdrawn prosecution and the family trust dispute.
To succeed, he would need to establish the police or prosecutorial conduct he considers unlawful, prove that it caused him damage and justify the amount claimed.
He has not yet received compensation, and no settlement has been reached.
The case has therefore moved from criminal accusations against Iozzo to the possibility of a civil action by Iozzo against the authorities.
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