Couple charged over ‘ponzi scheme’

Cape Town - A Cape couple face criminal charges, including 21 counts of fraud involving more than R7 million, over an alleged ponzi scheme that left investors in the lurch.

Jasmine and Maksuud Ebrahim were arrested and charged on Tuesday, then made a first appearance in the Athlone Magistrate’s Court, where they applied for bail and were granted bail of R10 000 and R5 000 respectively.

The couple made headlines a few years ago when the now liquidated World Focus 899 CC – which they ran – came under the spotlight in an inquiry hearing to trace the whereabouts of money that had been invested in the company.

Now the couple face prosecution.

The State has provisionally charged them with 21 counts of fraud, one count of money laundering, as well as several other counts related to alleged contraventions of the Financial Advisory and Intermed-iary Services Act and the Banks Act.

Their attorney, Rooshdeen Rudolph, who represented them during the bail hearing, said they had anticipated the Ebrahims would be charged and had made arrangements to bring them in to the police station so that it could be done “the decent way”.

At the police station, Jasmine Ebrahim, 53, told the Cape Times that she had ”nothing to hide”.

“I’m innocent,” she said. “I was a businesswoman and acted in accordance with what my business required me to do and that will all be proven in court.”

Both Jasmine and Maksuud Ebrahim submitted sworn affidavits to the court during the bail hearing.

In her statement, Jasmine said that about five years ago the Hawks had come to her house with a search and seizure warrant and seized documentation.

She had co-operated with the police at all times, Jasmine said.

“I wish to pause to mention that the company of which I was a director was liquidated and a protracted inquiry in terms of section 417 of the Companies Act was conducted and is to date still not finalised,” the affidavit read.

She further said in the document that she had elected to stand and face “whatever alleged charges” were brought against her, and that she intended to plead not guilty to the charges.

Maksuud also indicated that he intended to plead not guilty to the charges.

In their separate affidavits, both she and her husband stated: “I am innocent on the charges against me and verily believe that I will be acquitted should the State pursue my prosecution.”

Prosecutor Simon Leope did not oppose bail, but asked that the bail amount be set at R10 000 for Jasmine and R5 000 for Maksuud, along with certain bail conditions, among them that the couple report to the Woodstock police station every Monday and Friday.

The case was postponed to March 27 for further investigation.

World Focus 899, and other companies linked to it, reportedly persuaded about 400 people in Cape Town and Johannesburg to invest large sums of money in it.

But the wheels came off late in 2009, however, when investors were not being paid the attractive returns they had been promised – of between more than 100 and 200 percent – on their investment.

leila.samodien@inl.co.za

Cape Times