No refunds for duped investors

Five “participants or victims” in an illegal Ponzi scheme unsuccessfully attempted to have their investments returned from funds in three bank accounts of the alleged orchestrator of the scheme.

- Roy Cokayne

These funds were forfeited to the state in terms of the Prevention of Organised Crime Act. The applicants applied to the KwaZulu-Natal High Court in Durban for a variation to the forfeiture order to allow them to get their investments back.

The applicants claimed they were unaware the Crypto Mzansi Group scheme, which solicited investments largely through social media, was illegal despite the promised abnormally large returns on the investments.

This included a 3 000% return on a long-term investment of nine months that promised to transform an investment of R10 000 to R300 000.