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Nine people who are accused in a multi-billion-rand investment scam appeared in the Bronkhorst Magistrate’s Court on Thursday.
The accused are Louis Liebenberg (60), his wife Desiree, (50), Magdelena Kleynhans (54), Johannes Badenhorst (41), Helena Schulenburg (59), Adriaan Strydom (35), Christelle Badenhorst (42), Nicolize van Heerden (58), and Walter Niendinger (55).
The National Prosecuting Authority said they are facing charges of 42 counts of fraud, alternatively theft, five counts of racketeering, six counts of money laundering and various statutory offences, including contraventions of the Companies Act.
NPA spokesperson, Lumka Mahanjana, said more charges will be formulated and added at a later stage.
The state alleges that Louis Liebenberg had registered 15 companies where his ex-girlfriend Kleynhans, and the rest of the accused who are either family members or have close relations, were directors.
It’s further alleged that in 2020, he, and Magdelena Kleynhans registered a company styled Tariomix where they were both directors while another company Forever Zircon was registered in 2021.
Mahanjana said both these companies were purportedly involved in buying and selling diamonds.
“Potential investors were lured through social media and radio interviews to invest in the buying and selling of diamonds and were also promised high returns over a short period using a cashless platform called AE Switch.
“Thousands of investors made payments into the platform amounting to approximately R4.5 billion,” she said.
Mahanjana said the accused used the proceeds of the diamond investment scheme to purchase movable and immovable assets, including two mines, and various motor vehicles, and paid for Liebenberg’s lavish wedding and honeymoon in Greece.
“Various immovable properties, including an office block, were purchased,” she said.
The State did not oppose bail in respect of Kleynhans, Schulenburg, who was granted bail of R20 000, while Niedinger, was granted bail of R100 000.
The matter was postponed to 31 October for a formal bail application in respect of the other accused.
