KZN family nabbed in connection with multimillion-rand Coin-It scheme

The Hawks have arrested a KwaZulu-Natal father, mother and daughter allegedly linked to a controversial multimillion-rand Coin-it “pyramid scheme.”

Malcolm de Beer, 34, Patricia de Beer, 53, and Samantha de Beer, 31, appeared in the Pietermaritzburg Magistrate’s Court on Tuesday.

The trio are facing charges of fraud, with the alternative charge of theft, to the amount of approximately R73.6 million.

The De Beers are also charged with Contravention of the Financial Advisory and Intermediary Services Act, the Banks Act and money laundering.

Scheme

KZN National Prosecuting Authority (NPA) spokesperson Natasha Ramkisson-Kara said the arrests were the results of the combined efforts of the provincial NPA and the Hawks.

“Coin-It had placed advertisements on its website and in different newspapers calling for people to invest with them. As a result of the advertisements, several people deposited funds into COINIT’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 investors.

“The state alleges that the entity was not registered as a financial services provider; and contravened the legislation by not having the prescribed licence,” Ramkisson-Kara said.

ALSO READ: South Africans warned about MMM Krypto’s promises of 24-36% monthly returns

Bail

Ramkisson-Kara said the trio were released on bail of R50,000 each.

“Malcolm and Patricia surrendered their passports and were advised to contact the Investigating Officer should they wish to travel. The matter, which was remanded to 19 March 2024 for discovery, will be transferred to the Specialised Commercial Crimes Court in Durban and the accused will appear there on the next occasion.”

Ramkisson-Kara said the NPA and the DPCI are committed to fighting fraud.

“By working together with each other and our partner stakeholders, we can turn the tide against crime in South Africa,” Ramkisson-Kara said.

Krypto scheme

Meanwhile, the Financial Sector Conduct Authority (FSCA) has warned the public to be careful of MMM Krypto, a scheme originating in Russia and promising returns of 24-36% a month.

MMM Krypto is a rebrand of MMM Global, which roped in millions of people across Africa in recent years. It was labelled one of the biggest Ponzi schemes of the 1990s, using funds from new investors to pay out older ones, according to Moneyweb.

ALSO READ: State attorney wants Zuma to pay back nearly R29m in legal fees