Former CEO of housing association Vestia Erik Staal has managed to avoid a prison sentence for fraud on appeal. Staal led Vestia when it emerged in 2012 that the then largest housing association in the country was in major financial problems due to risky billion-dollar speculation with derivatives (insurance against interest rate fluctuations on long-term loans).
More than five years ago, he was sentenced to two years in prison for a series of offences. Staal made agreements with the judiciary. As a result, he did not have to spend two years in prison, but was fined 100,000 euros. He may transfer that amount to the state in eleven installments via a payment arrangement. He was also sentenced to 31 days in prison, but he had already served it in pre-trial detention. He also received a suspended sentence of twelve months.
1What case is it about?
In January 2020 the Rotterdam court sentenced Steel up to two years in prison for forgery, embezzlement, theft and money laundering. The court considered it proven that Staal had embezzled more than 1.7 million euros. That money belonged to HASA, a social housing foundation in South Africa. Under Staal’s leadership, Vestia had invested millions in HASA. When he was arrested in 2017, he was the only director at HASA. He had, among other things, forged the deed of sale of a villa in Johannesburg, so that he became the owner for a fraction of the market price and could receive rental income instead of HASA.
2What did Staal do with HASA’s money?
He took good care of himself. He siphoned off a quarter of a million euros through the account of his sister-in-law, who was then a security officer at the European Parliament in Brussels. He also purchased a jet ski (12,019.23 euros) for his beach villa on Bonaire, he bought tens of thousands of euros worth of airline tickets and a Mercedes GL400 (25,173 euros, with winter tires) for his wife. Ultimately, Staal HASA compensated the damage suffered of approximately 2.4 million euros. Before that, he sold his luxurious beach villa on Bonaire.
3What happened with the Vestia affair again?
This fraud by HASA took place in the wake of a much larger scandal at the Rotterdam housing association Vestia. Staal resigned as CEO of Vestia in early 2012 when the derivatives scandal at the corporation came to light. He was not a suspect in the criminal case that followed against Vestia’s cash manager Marcel de Vries and financial intermediary Arjen Greeven. Staal managed to avoid this by settling for 1 million euros with Vestia to buy off director’s liability. According to the Public Prosecution Service, that money largely came from HASA.
4Why were the agreements with the judiciary only announced after six months?
The judgment of the Court of Appeal in The Hague has been in place since the end of May online. Only apparently no one in the media had bothered to watch it and publish about it. Last weekend came de Volkskrant with a big story about Staal and the agreements with the judiciary, after which other media picked up the news.
In the judgment, the court underlines the seriousness of the case: that Staal used money “intended for the less fortunate in South Africa” exclusively for his own gain. On the other hand, Staal’s family has been affected by the publicity and the case has been going on for a very long time. Due to Staal’s health condition, the Public Prosecution Service decided on the settlement with the defense. The court agreed to this.
5What happens next with Staal?
Staal is now 74 years old and does not have to go to prison. During the first instance trial he said he had cancer and had only a short time to live. The judgment states that doctor’s statements show that there has been a “clear deterioration” in his health since 2024. It can also be read that Staal is satisfied “if he can throw off ‘this backpack’, as he experiences the criminal case.”
NEW: Give this item as a gift
As an NRC subscriber you can subscribe every month 10 articles give as a gift to someone without an NRC subscription. The recipient can read the article directly, without a paywall.