Couple behind R278 million Ponzi scheme convicted

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Couple behind R278 million Ponzi scheme convicted
Couple behind R278 million Ponzi scheme convicted

Husband and wife Graeme Minne (54), Carolina Frederika Minne (52), have been convicted by the Thembalethu Regional Court on Tuesday 18 July 2017 for fraud related to running a multi million Ponzi scheme.

The accused duped unsuspecting victims between Sept 2002 and Nov 2009 into investing funds ranging from a minimum of R100 000, with promises of higher than usual returns on Forex trading, victims were promised profits of up to 65% on annual basis.

About R278 786 853-00 was amassed from almost 934 clients in the said period and the couple reportedly did limited trading (less than R 5 million) at a net loss and then in a typical pyramid scheme fashion, they resorted to paying initial investors using new investors funds.

The Hawks’ Serious Commercial Crime Unit relentless investigations put a stop to the duo lavish life style and arrested them during 2009 culminating in this conviction.

The two have been convicted for fraud and contravening section 11 read with sections 1 and 91(4) of the Banks Act, nr 94 of 1990.

The sentencing proceedings are set to commence on the 21st of September 2017. They remain out on R50 000 bail each.

Western Cape Provincial Head of the Directorate for Priority Crime Investigation, Major General Nombuso Khoza commended the members for securing the conviction. “The public is hereby reminded to avoid putting their hard earned money at risk by investing with illegitimate investments schemes. Anything that looks too good to be true it usually is,” she said.

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