After complaints from members of the public in 2015, the Reserve Bank commissioned an extensive investigation into the affairs of certain entities that appeared to be the chosen vehicles for running the Ponzi scheme.
The Bank had reason to believe the accused were illegally conducting “the business of a bank” contrary to the relevant provisions of the Banks Act.
“The investigation revealed that over the period 2012 until 2016, all three accused and the late Weimar acted as the major role players in the scheme, chiefly using a company called FinCapital and related companies to commit the fraud.
“The accused would, through television, newspapers and other means, approach members of the public (described as “licence partners” once they joined and invested) and inform them about passive income and/or investment opportunities in the entities linked to the Ponzi scheme.”
They allegedly enticed investors by offering them high and unrealistic monthly income/returns of between 25% and 45% on their investments.
“More than R100m was lost by members of the public who were allegedly persuaded to invest in the scheme.”
The seized assets were put in the custody of the curator in line with the restraint order, pending the outcome of the criminal case.
TimesLIVE
Alleged Ponzi scheme masterminds have assets worth R59m attached
Accused were suspected of 'conducting the business of a bank'
Image: NPA/Hawks
Various assets estimated to be worth more than R59m, belonging to the suspects of an elaborate Ponzi scheme, were attached on Tuesday after a restraint order was granted by the Johannesburg high court.
The national director of public prosecutions applied for the restraint order against assets located in various parts of the country, including Mpumalanga, Eastern Cape, Gauteng, and North West. They consist of, among other things, vehicles, game farms and holiday homes.
“The assets mainly belong to the three accused in a Ponzi scheme matter, their associates and other individuals who appear to have benefited from the scheme,” said a joint statement issued by the National Prosecuting Authority (NPA) and the Hawks.
Kelvin Cholwich, Theunis Johannes Schoeman and Johan de Clerk are facing various charges in the Johannesburg specialised commercial crimes court, ranging from fraud to contraventions of the Banks Act. The fourth alleged mastermind of the scheme, Robert Paul Weimar, died in 2017 before the start of the trial.
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After complaints from members of the public in 2015, the Reserve Bank commissioned an extensive investigation into the affairs of certain entities that appeared to be the chosen vehicles for running the Ponzi scheme.
The Bank had reason to believe the accused were illegally conducting “the business of a bank” contrary to the relevant provisions of the Banks Act.
“The investigation revealed that over the period 2012 until 2016, all three accused and the late Weimar acted as the major role players in the scheme, chiefly using a company called FinCapital and related companies to commit the fraud.
“The accused would, through television, newspapers and other means, approach members of the public (described as “licence partners” once they joined and invested) and inform them about passive income and/or investment opportunities in the entities linked to the Ponzi scheme.”
They allegedly enticed investors by offering them high and unrealistic monthly income/returns of between 25% and 45% on their investments.
“More than R100m was lost by members of the public who were allegedly persuaded to invest in the scheme.”
The seized assets were put in the custody of the curator in line with the restraint order, pending the outcome of the criminal case.
TimesLIVE
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