AFU freezes R18m in assets, cash from Up Money ‘pyramid scheme’
The High Court has granted the Asset Forfeiture Unit (AFU) a preservation order freezing assets and accounts worth R18 million linked to a company called Up Money.
The company has been labelled a pyramid scheme.
"The High Court in Johannesburg granted the AFU preservation orders to freeze bank accounts worth more than R18 million and a number of luxury vehicles,” said the National Consumer Commission’s acting commissioner Thezi Mabuza.
She briefed the media on action taken against the company in Pretoria on Tuesday.
"These are associated with Jade Matsemela and Sipho Martin Mdlhuli. They are respectively the director and former director of Up Money (PTY) Ltd and Uniitco (Pty) Ltd."
It is believed that some 230 000 people may have fallen victim to Up Money.
"Between 4 May 2020 and 2 July 2020, the scheme received R42,7 million,” said Mabuza.
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"More than R12.5 million was blown through purchases at various retail stores and buying three luxury vehicles.”
Advocate Ouma Rabaji-Rasethaba, from the National Prosecuting Authority (NPA), described Up Money’s dealings as nothing but fraud and theft.
"This is fraud, this is theft, but is also contravention of the Banks Act and Financial Services Act. They don’t have a licence to be getting cash and getting deposits from the public.
"If you look at the nine contraventions that I have referred to, it’s racketeering provisions, money laundering in a sense that they concealed the origin of the funds by moving them around within the two accounts."
