Coin-it get-rich-quick scheme dealt another blow as AFU obtains preservation order

Get-rich-quick scheme Coin-it Trading (pty) Ltd has once again been dealt another blow after the Asset Forfeiture Unit on Friday obtained a preservation order to the value of R48.9 million from the Pietermaritzburg Hight Court.

This after the National Prosecuting Authority (NPA) obtained a forfeiture order from the same court back in May for immovable properties and vehicles worth R106 million belonging to the company and other liquidated business entities.

The forfeited property included 11 pieces of land in Dundee, five aircrafts and a motor vehicle.

Coin-it enticed people into becoming members and paying a deposit and monthly instalments towards buying a truck, bus or earthmoving equipment that would be leased out, with the rentals paid to the “buyer” for a certain time.

The “owners” would get paid a sum for a certain number of months until the vehicle is “paid off” and then they would get a double payment monthly.

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At least 3,000 investors received a monthly payment or two as promised, but then the money dried up. Those who asked questions were ostracised.

To get people to invest with them, Coin-it placed advertisements on its website and in different newspapers. As a result of the advertisements, a number of people deposited funds into Coin-it’s bank accounts.

In terms of the Financial Advisory and Intermediary Act and the Banks Act, Coin-it was not authorised to accept deposits from the investors.

According to the NPA: “The current preservation orders, granted in July 2021 and August 2021 respectively, relate to Coinit purchasing other assets such as a mining shaft, namely Joint shaft and, Wesselton Plant situated in Kimberly (total value of R36 million), a Cessina 175 Skyland aircraft valued at R550,000 and shares in Sikhova Environmental Building Solutions for R12 million.”

“They also purchased immovable property in Danhauser valued at R310,000.”

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It said that the preservation orders prohibit any person with knowledge of its existence from dealing in any manner with the properties.

“Furthermore, it places the properties under the effect control of a curator bonis pending finalisation of the forfeiture applications.

“This matter is indicative of the synchronised collaboration between the various units (in this instance, the Asset Forfeiture Unit and the Specialised Commercial Crimes Unit) within the NPA successfully working together, as part of the NPA’s six-month priority plan,” the NPA said in a statement.