Garden Route's R278m Ponzi scheme mastermind jailed for 15 years

21 September 2017 - 17:57 By Philani Nombembe
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File Photo of a prison jail cell.
File Photo of a prison jail cell.
Image: Gallo Images/Thinkstock

A wealthy Western Cape businessman has been handed a 15-year prison sentence for running a R278-million Ponzi scheme.

Graeme Minne hoodwinked close to 1 000 victims by enticing them with unrealistic returns of up to 65% from foreign exchange trading between 2002 and 2009.

Thembalethu Regional Court‚ in George‚ slapped Minne with the lengthy sentence on Thursday. His wife‚ Caroline‚ was sentenced to three years of correctional supervision. The court convicted the couple in July of fraud and contravention of the Banks Act .

Their assets‚ totalling R12-million and including R6-million in bank accounts and a black Lamborghini with a number plate that read “UNREAL” — were seized in 2009. The couple also owned two luxury homes on the Garden Route.

Eric Ntabazalila‚ the provincial spokesman for the prosecution‚ said Minne intended to appeal against his conviction and sentence.

“[Minne] held himself to be an expert in forex trading and even offered courses in the field‚” said Ntabazalila.

“He received monies from various investors on the basis of 4% per month interest over 12 months or 65% on a once-off payment in 12 months. At the end of the term the investor would get the capital investment back.

“The monies were paid into an Absa account belonging to his wife‚ Caroline. Between 2002 and 2009 the accused had about 735 clients and monies estimated at about R278 786 853 were going through the wife’s bank account.”

Ntabazalila said a bank employee reported suspicious transactions and the Reserve Bank investigated. “It was discovered that the accused was trading a minimal amount in forex trading and at that made a loss. He spent the bulk of the money on his family’s luxurious lifestyle and to pay the investors the interest as promised.”

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