Johannesburg – “I’m not going to win against
the Reserve Bank - that is impossible.”
This is the
view of Christ Walker, the mastermind behind the R800m Defencex scheme.
Walker made this statement during an exclusive interview with Moneyweb, which ranged from the new
schemes and training seminars he is promoting to his views on
the latest scheme to hit the headlines, after the Western Cape High Court on February 28 ordered its Standard Bank account to be frozen because of the company's deposit-taking
In terms of the Banks Act, only banks,
collective investment schemes and brokers through a brokerage account are
authorised to take deposits.
earlier reported that the Reserve Bank had asked auditors PwC to investigate
whether Defencex, Cycle4Dollars, Net Income Solutions and Walker were
contravening the Banks Act.
affidavits, large sums of money were deposited into the accounts of Net Income
Solutions, none of which were reinvested by Walker.
Still no returns on invested amounts
punted itself as an online investment company that allows you to "grow your
profits by learning to compound your daily profits".
investors about 2% per day on investments of five months' duration, subject to
a complicated points-based assessment system. They could enhance these returns
by earning commission on the amounts invested by people they in turn introduced
to the scheme.
Investors have no clue when they will see any of their money.
The last post on June 25 on the Defecex website stated: "The interim order made on 28 February 2013 was made final and confirmed today. In other words the Registrar of Banks still has control over the money. So nothing has changed.
"We still have to wait until the investigation is finalised. We do not know when that will be."
Analysts said the signs were clear for investors not to buy into a scheme like Defencex.
a scheme is exposed, people go through something similar to the normal five
phases of loss – disbelief, anger, fear, negotiation, and then a very distant
acceptance or resigning themselves to the loss,” said Daryl Ducasse, investor
activist and member of Merkurius Capital Solutions.
questions on the loss people suffered from investing in
Defencex, Walker told Moneyweb: “The only reason they have lost money is because the
Reserve Bank closed the bank accounts … Sarb did not like people to be able to
make money because they rely on debt… the banks make money from debt.
“They think I am the biggest criminal in SA at
the moment,” said Walker.
He likened the insurance industry and the banks to Ponzi schemes, while admitting
that his battles with the Reserve Bank could never have been won.
claimed not to have profited from his embattled business and suggested that the
accounts linked to Net Income Solutions were frozen to protect the profit-seeking interests of the banks, and to allow liquidators and attorneys a slice
of the R349m pie.
Pyramid scheme accusations
Moneyweb, Walker, 46, is no stranger to controversy. His previous scheme, Gold
Charity Fund Investments, was reportedly declared an unfair business practice
back in 2002.
accused of operating a pyramid scheme which abused the name and image of former
president Nelson Mandela.
on to say: “I’m still with the people who made money and [they] understand.
Bank closed the banks accounts… they must decide what to do with the money.
going to win against Sarb - that is impossible.”
Defencex, he said: "The company was about revenue sharing… traditional
network marketing pays out up to ten levels, they don’t advertise so they take
the advertising budget and they give it to the members…"
Ducasse said he doubted whether Defencex members will ever see their money again.
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.