Coin-It investors say scheme is insolvent and illegal
Coin-It is said to owe the applicants R10-million, and this amount is only escalating.
Legal counsel for Coin-It investors are seeking a liquidation order, because the investment company is allegedly ‘insolvent and its business operation illegal’.
The hearing is currently underway in the Pietermaritzburg High Court. Alan Boulle, representing the investors, told the Court he had overwhelming evidence to make a case on both points.
When the investors lodged their court papers in October, Coin-It owed the applicants in this case about R10-million. The investors have not been paid since and the debt is still escalating.
At a previous court hearing, Advocate Anton Flemming for Coin-It, told the court the FSCA (Financial Sector Conduct Authority) had confiscated all the de Beer’s documents and he would bring an urgent application to obtain them. However, it is now months later and no such application was ever brought, nor has anybody representing the company reportedly ever asked for them.
Adv Boulle, who pointed this out to the court, described Advocate Flemming’s claim that he could not obtain the documents as ‘nonsense’.
“In fact, what characterises this whole application is delay, delay, delay,” stated Adv Boulle. “They played for time and they haven’t been forthright with the court.”
Addressing the court on behalf of Coin-It, Adv Flemming complained heads of argument could not be filed, as the shareholders in Coin-It did not have funding. He explained Coin-It’s assets were seized by the Asset Forfeiture Unit and it’s bank accounts were frozen.
This is a developing story and will be updated as court proceedings continue.
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