Court greenlights forfeiture of R4m linked to Chinese-led investment scam

The NPA says their investigations revealed that a group of Chinese nationals paid unsuspecting individuals R200 to provide them with their details, including their photos.  

Those details were used to open different bank accounts, which were used to conduct complex networks of fraudulent investment schemes advertised and promoted on social media, including Facebook and WhatsApp. 

“The schemes were primarily promoted under different names such as ‘Trouva, Centamin, Hot Farm and/or Benchmark Woodworking’, among others, to mimic legitimate companies,” the NPA’s Lumka Mahanjana said on Tuesday. 

“These schemes took different forms and have been identified as having some features of both Ponzi and pyramid, where they defrauded investors by promising them unrealistic returns on investments, reliance on funds from new investors to sustain their operations, and payment of new investors from money received from earlier investors.”

She said the NPA worked with the Financial Intelligence Centre to obtain a preservation order and ultimately forfeit the funds.

Mahanjana added that the forfeited funds would be paid into the Criminal Asset Recovery Account, ensuring that proceeds of crime would be redirected to the state to strengthen the fight against organised crime.  

"The NPA’s Asset Forfeiture Unit will continue to pursue all legal remedies to ensure that assets derived from unlawful activities are forfeited to the state.”

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