Ponzi 'broke us' – victims

Affinity scam with referrals coming from family, friends they trusted.

- Hein Kaiser

High-stakes investment scheme, promising sky-high returns and wrapped in an illusion of legitimacy, has left a trail of financial devastation.

Valorworx, the company at the centre of this scandal, appeared to offer a once-in-a-lifetime opportunity. The reality, however, was far more nefarious.

IRS Forensic Investigations, led by investigator Chad Thomas, has been unravelling what was a classic Ponzi scheme orchestrated by a romantic couple, Alessandra de Vito and Elmarie Ducas.

Although their liaison apparently came to an end, it's the investors who were on the bad side of a breakup.

Thomas said promised returns were supposed to be 30%-50% of the investment, within three months. "When it came time to pay, however, no payments were made to anyone."

"Investors were lured into the scheme through close-knit circles of friends and family. It's called an affinity scam and because referrals came from people others trusted, it heightened its sense of legitimacy," Thomas said.

One of the early investors, Mike Rose, told how he was introduced to the scheme by a friend who had already seen returns.

"I invested R500 000 myself," he said.

"I even brought my father in for another R200 000, after seeing my friend receive payments. It seemed like a win-win at first."

Rose's initial faith in Valorworx was bolstered by documents that seemed to indicate substantial profits.

"They made it look like our money was doubling," he said, "so, of course, I trusted it."

The scheme's success relied on a vicious cycle of reinvestment. Many early investors were paid small sums, effectively as bait to draw in more cash.