Two of the alleged con artists who are linked to a brazen R4.5-billion diamond fraud syndicate used some of the proceeds to fund their lavish wedding and honeymoon in Europe.
These tidbits were revealed by the National Prosecuting Authority (NPA) following the appearance of the suspects. They are aged between 41 and 59 years, and appeared before the Bronkhorstspruit magistrate’s court on Thursday.
Group lured investors on social media, radio
Their court appearance comes after they were arrested this week.
The group, including alleged syndicate mastermind Thomas Petrus Liebenberg, his wife Desiree Liebenberg, Magdelena Petronella Kleynhans, Johannes Petrus Badenhorst, Helena Dorothea Amy Schulenburg, Adriaan Dewald Strydom, Christelle Badenhorst, Nicolize van Heerden, and Walter Niendinger, are primary suspects in a diamond syndicate.
They allegedly lured potential investors through social media and radio interviews to invest in the buying and selling of diamonds. The group promised them high returns over a short period of time, using a cashless platform called AE Switch.
NPA spokesperson in Pretoria, Lumka Mahanjana gave details on the matter. She said the accused are facing charges of 42 counts of fraud (alternatively theft). Also five counts of racketeering and six counts of money laundering. Various statutory offences, including contraventions of the Companies Act, were also added.
Proceeds used to fund lavish lifestyle, weddings, honeymoon
“The accused utilised the proceeds of the diamond investment scheme to purchase movable and immovable assets. These include two mines and various motor vehicles. A …Ford Bakkie, a BMW 230i sport, a Toyota Aygo, Kruger rands and silver coins. And also to pay for Liebenberg’s lavish wedding and honeymoon in Greece.
“More counts will be formulated and added at a later stage,” said Mahanjana.
“It is alleged that Louis Liebenberg registered 15 companies. His ex-girlfriend Kleynhans and the rest of the accused were directors. They are either family members or have close relations.
“In 2020, Louis Petrus Liebenberg and Magdelena Petronella Kleynhans registered a company. It was tyled Tariomix, where they were both directors,” said Mahanjana.
Another company styled Forever Zircon was registered in 2021. Mahanjana said “both these companies were purportedly involved in buying and selling diamonds”.
R4.5-billion swindled from investors
Thousands of investors made payments into the platform amounting to approximately R4.5-billion.
“Various immovable properties, including an office block, was purchased. When some investors did not receive the promised payments, they became suspicious. And they reported the matter to the SAPS suspecting that they were defrauded.”
The matter falls within Schedule 5 of the Criminal Procedure Act. However, the state did not oppose bail in respect of accused 2 Kleynhans, 4 Schulenburg, and 8 Niedinger.
“Accused 2 and 4 were released on R20, 000 [bail each]. While accused 8 was released on R100, 000 bail. With the condition that they surrender their passports to the investigating officer.”
The matter has been remanded to October 31 2024 for a formal bail application in respect of the other accused.
