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.
Esta historia es de la edición November 04, 2024 de The Citizen.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición November 04, 2024 de The Citizen.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Carlo, Pep head to lion's den
Look out for cash-boosted TAB soccer pools galore and several explosive matches this weekend, but before that there's great football on the menu and plenty of cash to be won on TAB soccer bets, including an enthralling clash between Liverpool and Spanish champions Real Madrid tonight.
Irwin on Team Valor's SA interests
USA-based Team Valor has had a close relationship with South African racing for many years now and recently bought four fillies who have run with much success in South Africa.
Roberts set for week of distinction
Trainer Michael Roberts is in the throes of a big week as five-year-old See It Again is aimed at the R6-million Betway Summer Cup at Turffontein on Saturday.
Golden Rise to shine at Happy Valley
Hong Kong racing continues at Happy Valley today with an exciting nine-race fixture and highly competitive action expected throughout the evening.
Cody set to storm home
CLASS: PETER-TRAINED RUNNER HAS BEEN RACING IN STRONGER COMPANY
Gateway to Omoda badge more affordable with C5 Street model
Having dropped the price tag of the C5 to below R400 000 with the introduction of the Style grade in June, Omoda has gone a step further by debuting another derivative priced even lower at R329 900.
Picanto has come a long way
NEWVOLD: MORE POWER AND UPGRADED TECH MAKE KIA'S POPULAR HATCH MORE DESIRABLE
Renault reveals 2025 models
Plans to reclaim its standing within the top five vehicle brands.
Mitsubishi's new Triton lands
CHALLENGE: 11-STRONG MODEL RANGE THROWS DOWN THE GAUNTLET TO MARKET STALWARTS
Top down simply the best
CLE CABRIOLET: LIVE THE FANTASY WITHOUT SUNBURN OR YOUR HAIR GETTING RUINED