Alleged R500m KZN pyramid scheme scam artists in custody
The founder and director of a Pietermaritzburg-based investment company, who allegedly swindled about R500m from investors, appeared in court on Monday.
Sandile Sibiya, 29, and his alleged accomplice, 27-year-old Nomaliza Sibiya, appeared in the Pietermaritzburg magistrate's court for alleged fraud and contravention of the Bank Act.
“Between June 2019 to November 2019 the accused were receiving deposits from the potential clients as investment into their company. They were lured with a promise the company allegedly would utilise their investments to purchase horse-and-trailer trucks that would be working in coal mines,” said police spokesperson Capt Simphiwe Mhlongo.
“The income derived from the transporting of the coal was to generate a monthly return for the investors. Approximately R500m was deposited into their company account. However, no returns were paid to some of the investors,” said Mhlongo.
A case of fraud and contravention of the Bank Act was reported at Pietermaritzburg police station and the docket allocated to Hawks members from the Pietermaritzburg Serious Commercial Crime Unit for investigation.
“On Sunday, the two were arrested and charged accordingly. The case was postponed to January 10 for a formal bail application,” Mhlongo said.