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'Salvation Army scam' hits SA

Oct 30 2009 08:12 Nellie Brand-Jonker

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Cape Town - South Africans who invested in the so-called Salvation Army fraud are being sought.

The alleged fraudulent investment scheme was apparently operated in the name of the Salvation Army by a Briton who may have robbed investors of millions.

Graham Whitehead (42), who was associated with the Salvation Army for many years, was arrested earlier this year on British soil after he returned from a business trip to South Africa.

Whitehead apparently ran the Willows Property Solutions investment scheme in South Africa. Although it was never registered as a company, on his website it is described as a company managed by Whitehead in association with Woodbridge Financial Services in Britain.

Investors were lured on the pretext that they could invest in property in Britain. This property ostensibly does not exist.

The Reserve Bank instructed the Edward Nathan Sonnenbergs forensics investigation team to look into Whitehead's South African activities to determine whether there had been transgressions of the Banking Act.

The Germiston branch of the police's Directorate for Priority Crime Investigations, The Hawks, is also investigating the case.

This team is now asking South African investors who invested with Whitehead to contact it. The extent of the investment scheme in this country is still unknown.

The Salvation Army apparently submitted a complaint in Britain earlier this year, which led to his arrest.

Edward Nathan Sonnenbergs issued a statement to say that Whitehead had intimated to investors that his businesses were connected to the Salvation Army.

Investors were told that they were investing in property that the Salvation Army would buy back from them at a later stage and they were promised high returns.

Up until Whitehead's arrest he is believed to have lived extravagantly in, for instance, Michelangelo Towers in Sandton (the postal address for Willows) and a unit in the Centurion Golf Estate.

He was due to appear in court in Britain again on October 16, but this was postponed to December since 49 additional charges have been brought against him.

Investors can phone Edward Nathan Sonnenbergs in Cape Town on 021 410 2500 or in Johannesburg on 011 269 7600.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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