Planes and choppers, not trucks: Dodgy company loses R106m in flashy assets

In a statement on Thursday evening, the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority said they had obtained a forfeiture order from the Pietermaritzburg High Court for immovable properties and vehicles worth R106 million belonging to Coinit Trading (Pty) Ltd and other liquidated business entities.

The assets were first attached late last year after the AFU obtained a preservation order in terms of the Prevention of Organised Crime Act.

The seized assets reportedly included eight properties in the Dundee, Colenso and Hattingspruit areas, five aircraft and vehicles, including a Porsche S Coupé and a Jeep Grand Cherokee.

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Picture: Asset Forfeiture Unit

“Coinit had placed advertisements on its website and in different newspapers calling for people/investors to invest with them. As a result of the advertisements, a number of people deposited funds into Coinit’s bank accounts. In terms of the Financial Advisory and Intermediary Act and the Banks Act, Coinit was not authorised to accept deposits from the investors,” the AFU said.

“In the investment agreements with investors and as per the advertisement, Coinit advised that the money would be used by the company and its directors to purchase rigid trucks, older horses, newer horses, TLBs, front-end loaders and dumpers, and plant materials.

“However, the funds were used to purchase immovable properties, cars, aircraft, and shares in other companies,” Kara said.

eManzimtoti investor Rowena James, who dropped hundreds of thousands into the company, last year said she had received payments from November 2016 until May 2019, when payouts reduced unexpectedly by 50%. She ended up living in her mother’s garage.

Numerous other investors have shared similar tragic stories of loss and disappointment.