Home of diamond Ponzi scheme accused to be preserved

The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) obtained an order in the Pretoria high court this week to preserve a house in Hartbeespoort belonging to Johannes Badenhorst and his wife, Christelle Badenhorst.

The couple, together with alleged diamond Ponzi mastermind Louis Petrus Liebenberg and six others, are facing counts of fraud, racketeering, money laundering, theft and various statutory offences, including contraventions of the Companies Act. 

NPA spokesperson Lumka Mahanjana said the house was bought in May 2022 for R2.2m and registered in the names of Johannes Badenhorst and Christelle Badenhorst, who are still residing in the house. 

“Investigations by the AFU revealed that the funds used to purchase the property originated from Tarioco (Pty) Ltd, which is one of the companies founded by Louis Petrus Liebenberg as part of the Forever Diamonds and Gold [FDG] group of companies. Johannes Badenhorst was one of the directors of Tarioco.” 

Mahanjana said they allegedly ran a syndicate where members of the public were enticed to participate in a joint venture agreement with FDG by purchasing diamond parcels, which would supposedly be sold by FDG and the profits shared.

The joint venture partners were promised high returns on their investments. However, evidence revealed that the scheme was fraudulent, the diamond parcels did not exist and the investors’ funds were used to purchase a mine and properties for the directors.   

“The house that is preserved does not form part of the assets seized by the liquidators of Tariomix.” 

Mahanjana said the next step was for the AFU to apply for a final forfeiture order. “When granted the house will be sold on public auction and the proceeds paid into the Criminal Assets Recovery Account.” 

The criminal case against Liebenberg and eight others will resume in the Bronkhorstspruit magistrate’s court on July 8.

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