- Five people appeared in court for allegedly running a Ponzi scheme involving around R20 million.
- Spokesperson Lieutenant-Colonel Philani Nkwalase said the scheme allegedly operated between January 2010 and December 2011.
- They accused face 7 590 counts of fraud and contravening the Banks Act.
Five people appeared in court for allegedly running a Ponzi scheme
involving around R20 million, the Hawks in the Western Cape said on
Wednesday.
Spokesperson Lieutenant-Colonel Philani Nkwalase said Nobesuthu Phyllis
Mdekazi, Ncumisa Mdekazi, Philiswa Ntsabo, Bulelwa Siwisa and Nombulelo
Mbenyane appeared in the Bellville Serious Commercial Crimes Court on
Tuesday.
A Ponzi scheme relies on a continuous flow of new investors to pay out an
earlier wave.
The higher than usual initial returns and word-of-mouth that the system is
safe is usually used as a ruse to get more money into the scheme.
Nkwalase said it was alleged the scheme operated between January 2010 and
December 2011 from premises in Modderdam Road, Cape Town.
They accused face 7 590 counts of fraud and contravening the Banks Act.
The case was postponed to 19 January 2021 for further investigation.
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