An investigation by the Hawks, the SA Reserve Bank, the NPA and a private investigation firm has uncovered a ponzi scheme that has apparently robbed more than 800 people of R380m.

A Saturday Star report says QSG Consult International – based in Johannesburg – claimed to be an agribusiness development and management consultancy, but offered its clients the opportunity to invest in a bio-diesel trading project in Dubai for a steady profit.

However, last month, the Gauteng High Court (Johannesburg) granted a preservation order, freezing the company’s Mercantile bank accounts. This came after father and son directors of the company, Johan and Riaan Smit, allegedly fled to Dubai in November following the revelation that the overseas oil deal had never existed.

The office of the NDPP’s affidavit for the preservation order revealed the in-depth investigation into the company’s finances and how the fraud scheme allegedly operated. The probe began after several clients of the company laid complaints, alerting investigators to a series of suspicious transactions involving tens of millions of rands being transferred between SA and Dubai.

The government’s Financial Intelligence Centre was brought in to inspect the various transactions on QSG’S accounts and found that none of the investors’ money had been used to invest, but was instead shuffled around to provide monthly payouts to investors.

Full Saturday Star report (subscription needed)