Task team to probe Ponzi scheme

Johannesburg - A special task team has been established to investigate a Ponzi scheme allegedly run by Barry Tannenbaum, law enforcement agencies said in a joint statement on Sunday.

The task team will comprise investigators from the Financial Intelligence Centre (FIC), the SA Revenue Service (Sars), the SA Reserve Bank (Sarb), the SA Police Service (SAPS) Serious Economic Offences Unit and the National Prosecuting Authority (NPA).

This follows the uncovering this week of one of the country's largest Ponzi schemes, estimated to be worth up to R10bn.

Law enforcement agencies held an urgent meeting on Friday to "decide on a plan of action for a high level investigation into serious allegations including possible fraud, money laundering, tax evasion and foreign exchange control violation against Mr Barry Tannenbaum and associated entities".

"The NPA indicated that prosecutors from the Specialised Commercial Crime Unit will be working closely with detectives from SAPS to evaluate evidence and to determine whether to prosecute any of the persons or entities involved in this scheme," the statement read.

The NPA's Asset Forfeiture Unit would consider whether any assets could be frozen or forfeited as proceeds of unlawful activity.

According to the statement, Tannenbaum, a South African national, now lives in Australia. He is the grandson of one of the co-founders of Adcock Ingram.

The task team called on investors who had dealings with Tannenbaum and his associates to help with the case.

- Sapa