The son and former wife of failed Classical Financial Services One head Cobus Geldenhuis have been sequestrated, the latest dominoes to fall in an investment scam reckoned to have roped in close to R800m.

According to a Moneyweb report, Geldenhuis has already been sequestrated and his company placed in final liquidation after numerous complaints were lodged by investors who said they had been scammed.

A report by the Financial Sector Conduct Authority (FSCA) shows that more than R617m was deposited into bank accounts controlled by Geldenhuis between January 2019 and August 2022.

None of these funds were invested and about three quarters of the money was used to pay out existing clients, with R129m allegedly going directly to Geldenhuis.

The FSCA has banned Geldenhuis for a period of 20 years and imposed an administrative penalty of R143m for violating the Banks Act by accepting deposits and for operating without a financial licence.

But in March, it warned that Classic Financial Services One and Geldenhuis were still rendering financial services to the public.

The NPA recently obtained a provisional order in terms of the Prevention of Organised Crime Act, but liquidators successfully intervened so that all property attached under the order now forms part of Classic’s insolvent estate. 

Geldenhuis is now trading under the name Pecunia Systems, which is a licensed financial services provider, according to Moneyweb, but Pecunia told the FSCA that it has no association with Geldenhuis and it did not give him permission to use its licence.

It has since asked the FSCA to allow its licence to lapse.

Full Moneyweb report