The National Prosecuting Authority's (NPA) Asset Forfeiture Unit (AFU) has obtained a forfeiture order of more than R475,000 held in an account opened by a foreigner suspected of being part of a Ponzi scheme.
“In terms of the order, the funds are proportionally divided among 65 victims according to the amounts they lost to the scheme, which was disguised as an online investment platform,” NPA spokesperson Luxolo Tyali said on Wednesday.
An East London resident laid a charge of fraud and theft at the Cambridge police station, saying he had been swindled in an online investment platform called Ant Ranch.
Under the scheme, “investors” deposited funds for the purchase of “farm animals” such as a ducks, cows or horses. The investors were encouraged to bring new investors to the platform and were supposed to receive payments for this.
There was no direct communication with “clients” during their investment period and communication was only through WhatsApp messages.
In October 2023, when the investors logged in to the Ant Ranch to check their investments, the site was blocked and they couldn't gain access. The WhatsApp numbers also stopped working.
“The East London complainant said he had started with small investment amounts but then became excited and started depositing larger amounts, up to R45,000,” Tyali said.
The AFU's East London office referred the matter to the Financial Intelligence Centre (FIC) and its investigation revealed many complainants around the country who had made deposits into various bank accounts linked to Ant Ranch.
“All these accounts, which were opened by Chinese nationals, were emptied and closed, except for one account, which had R475,000 in it. As one complainant had made one of his many deposits into this account, the FIC froze it on a temporary basis.”
The AFU then obtained a preservation order on November 7 2023 against that account and froze it. The account was opened by a Lesotho national whose whereabouts is unknown.
As there were many complainants who had deposited into this account the AFU investigator, in collaboration with the police investigator from the commercial crimes branch, began communicating with these victims and collecting their affidavits.
“Of the 82 identified victims, only 65 complied with the requirements to enter their appearance at the high court. On January 21 the AFU was able to obtain a forfeiture order to the state against the preserved funds,” Tyali said.
TimesLIVE
Ponzi scheme cash in bank account forfeited to the state
The state will distribute the money to 65 people who invested in the scheme
Image: REUTERS/SIPHIWE SIBEKO
The National Prosecuting Authority's (NPA) Asset Forfeiture Unit (AFU) has obtained a forfeiture order of more than R475,000 held in an account opened by a foreigner suspected of being part of a Ponzi scheme.
“In terms of the order, the funds are proportionally divided among 65 victims according to the amounts they lost to the scheme, which was disguised as an online investment platform,” NPA spokesperson Luxolo Tyali said on Wednesday.
An East London resident laid a charge of fraud and theft at the Cambridge police station, saying he had been swindled in an online investment platform called Ant Ranch.
Under the scheme, “investors” deposited funds for the purchase of “farm animals” such as a ducks, cows or horses. The investors were encouraged to bring new investors to the platform and were supposed to receive payments for this.
There was no direct communication with “clients” during their investment period and communication was only through WhatsApp messages.
In October 2023, when the investors logged in to the Ant Ranch to check their investments, the site was blocked and they couldn't gain access. The WhatsApp numbers also stopped working.
“The East London complainant said he had started with small investment amounts but then became excited and started depositing larger amounts, up to R45,000,” Tyali said.
The AFU's East London office referred the matter to the Financial Intelligence Centre (FIC) and its investigation revealed many complainants around the country who had made deposits into various bank accounts linked to Ant Ranch.
“All these accounts, which were opened by Chinese nationals, were emptied and closed, except for one account, which had R475,000 in it. As one complainant had made one of his many deposits into this account, the FIC froze it on a temporary basis.”
The AFU then obtained a preservation order on November 7 2023 against that account and froze it. The account was opened by a Lesotho national whose whereabouts is unknown.
As there were many complainants who had deposited into this account the AFU investigator, in collaboration with the police investigator from the commercial crimes branch, began communicating with these victims and collecting their affidavits.
“Of the 82 identified victims, only 65 complied with the requirements to enter their appearance at the high court. On January 21 the AFU was able to obtain a forfeiture order to the state against the preserved funds,” Tyali said.
TimesLIVE
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