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FNB assisting fraud task team

Jun 18 2009 14:23

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Johannesburg - First National Bank is working with a task team set up to probe the "Ponzi" scheme allegedly headed by Barry Tannenbaum, a spokesperson said on Thursday.

The task team comprises investigators from the Financial Intelligence Centre, the SA Revenue Service, the SA Reserve Bank, the SA Police Service Serious Economic Offences Unit and the National Prosecuting Authority.

FNB's Virginia Magapatona also confirmed that Tannenbaum's assets at FNB had been frozen by way of a court order.

Last week Tannenbaum, who now resides in Australia, was unveiled as the alleged fraudster behind a Ponzi scheme involving as much as R15bn.

Tannenbaum has denied the allegations.

According to an investigation, he allegedly convinced investors to put money into the import of pharmaceutical drugs, confirming he had contracts with large pharmaceutical manufacturers including Aspen Pharmacare.

The pharmaceutical giant has since issued a statement saying correspondence between itself and Barry Tannenbaum's Frankel International and Frankel Chemicals Corp was fraudulent.

- Sapa

 
 
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