Man arrested in KZN for scamming people out of R3.9m in alleged pyramid scheme

0:00
play article
Subscribers can listen to this article
KwaZulu-Natal police have arrested a 54-year-old suspect for allegedly running pyramid scheme which defrauded victims of around R3.9 million
KwaZulu-Natal police have arrested a 54-year-old suspect for allegedly running pyramid scheme which defrauded victims of around R3.9 million

KwaZulu-Natal police have arrested a 54-year-old suspect for allegedly running a pyramid scheme which defrauded victims of around R3.9 million.

The Hawks' Commercial Crime Unit in Pietermaritzburg served a summons on the suspect and subsequently arrested him on Friday.

"The suspect faces charges of fraud and allegedly contravening the Banks Act 94 of 1990," said Hawks spokesperson Captain Simphiwe Mhlongo.

The accused allegedly took cash deposits from the public, offering them rewards in return.

He also allegedly requested those involved in the scheme to recruit more members for "their shares to grow", added Mhlongo.

"However, it appears that the members' monies were taken by the suspect. The scheme dates back to 2013 and the arrest of this suspect is a recent development in this case."

The suspect will appear in the Durban Magistrate's Court on 29 October.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Voting Booth
When assisting your child with remote learning this year, did you:
Please select an option Oops! Something went wrong, please try again later.
Results
Follow the school's comprehensive sexuality education (CSE) curriculum?
13% - 359 votes
Adjust the CSE curriculum to suit the family's morals?
24% - 634 votes
Ignore the schools CSE programme and do your own teaching?
63% - 1681 votes
Vote
ZAR/USD
15.20
(+0.44)
ZAR/GBP
20.48
(-0.25)
ZAR/EUR
18.49
(+0.10)
ZAR/AUD
11.32
(+0.11)
ZAR/JPY
0.15
(-0.13)
Gold
1832.57
(+0.15)
Silver
23.93
(-0.35)
Platinum
1028.00
(+2.23)
Brent Crude
47.96
(+1.75)
Palladium
2384.45
(+0.20)
All Share
59134.39
(+1.46)
Top 40
54322.12
(+1.57)
Financial 15
11454.07
(+1.30)
Industrial 25
79933.42
(+1.10)
Resource 10
56756.77
(+2.31)
All JSE data delayed by at least 15 minutes morningstar logo