Possible Ponzi scheme link in horror Kraaifontein shooting | Fin24
  • New Notes

    Long queues have formed in Harare after Zimbabwe released new bank notes and coins.

  • Open Book

    Former President Jacob Zuma says the public protector can access his tax records.

  • Electricity

    Sowetans should pay rate of R150/month to foster a payment culture, says an ANC councillor.


Possible Ponzi scheme link in horror Kraaifontein shooting

Jan 18 2017 15:20
Isabelle Coetzee, News24

Cape Town - A Kraaifontein mother may have killed her son and herself after losing all her money to a scheme called 4th Power Investments.

On Saturday the mother turned a gun on herself after allegedly killing her eldest son, 21, and wounding her twin sons, 14.

Netwerk24 reported that she was "one of the largest investors" in 4th Power Investments and that she lost her entire pension and the money her husband left her after he died two years ago.

Members are worried a Hawks probe into whether or not the operation is a Ponzi scheme will cause them to lose their money.

"We are concerned that if the Hawks continue with their delaying tactics, more people will suffer as is already happening," Pat Marran, chairperson of the ANC's Boland region and a member of an association which backs the scheme said on Tuesday.

He said he was speaking as a member of "an association of investors, an association not for gain ... supporting 4th Power Investments".

Officer 'emailed' deceased

Marran said in a statement on Tuesday said that while the mother had invested with them, he could not confirm if she was one of their largest investors.

"Currently there is no proof that the company falls under the definition of a Ponzi scheme."

Netwerk24 reported that a Hawks investigating officer had told the Kraaifontein mother via e-mail that her money and that of the other investors was gone. He reportedly told her the money had been used by 4th Power Investments to pay off investors who'd joined the scheme earlier.

The investigating officer reportedly said a popular pastor ran the company.

The Hawks reportedly searched his premises twice and confiscated electronic equipment, including computers and cellphones on the second occasion.

Provincial Hawks spokesperson Lloyd Ramovha could not immediately be reached for comment.

Read Fin24's top stories trending on Twitter:

ponzi scheme


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote