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R43M Ponzi scheme cash frozen

Jul 31 2009 19:36

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Johannesburg - A High Court order has frozen R43m linked to the Ponzi scheme allegedly headed by Barry Tannenbaum.

The High Court in Pretoria granted the preservation order to the National Prosecuting Authority's Asset Forfeiture Unit in terms of the Prevention of Organised Crime Act," NPA spokesperson Mthunzi Mhaga said in a statement.

"The order freezes an estimated amount of just less than R44m held in two bank accounts in the name of Darryl Leigh and the Darryl Leigh Trust," he said

Tannenbaum, whose estate was provisionally sequestrated in June, was a trustee of the Darryl Leigh Trust.

Rather than distributing actual profits, a Ponzi scheme uses funds from investors to pay generous "returns" to other investors.

- Sapa

 
 
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