Alleged pyramid scheme boss arrested with victims R3.9m out of pocket
The accused allegedly took cash deposits from the public, offering them rewards in return.
Picture: iStock
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.
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