Money Scam Latest: AFU seizes KZN property, aircraft and vehicles

The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) has obtained a forfeiture order in the Pietermaritzburg High Court, to seize several immovable properties and vehicles valued at R106m, belonging to Coinit Trading (Pty) Ltd and other liquidated businesses.

The asset seizure order was granted in connection with the firm’s alleged contravention of the Financial Advisory and Intermediary Services Act 37 of 2002 and the Banks Act 94 of 1990. 

The latest order follows an earlier preservation order that was granted in November 2020 to freeze the company’s assets.

National Prosecuting Authority spokesperson Natasha Kara said: “Coinit had placed advertisements on its website and in different newspapers calling for people to invest with them. As a result of the advertisements, a number of people deposited funds into Coinit’s bank accounts.”

However, Kara said that in terms of the Financial Advisory and Intermediary Services Act and the Banks Act, Coinit was not authorised to accept deposits from the investors.

“In the investment agreements with investors and as per the advertisement, Coinit said the money would be used by the company and its directors to purchase rigid trucks, older horses, newer horses, TLB’s, front end loaders and dumpers (and other) plant materials,” Kara said,

However, Kara said the firm had used the deposited funds to purchase several immovable properties, cars, aircrafts and shares in other companies.

“The forfeited property includes 11 pieces of land in Dundee, five aircrafts and a motor vehicle. The forfeited assets will be handed into the custody and control of the liquidators of Coinit and the other liquidated entities, once the forfeiture order takes effect,” Kara said.                                                  

Dozens of investors had last year complained about the firm via social media pages and to the media after they alleged had stopped receiving investment return payments for the money they had invested in the company, while others had remained hopeful that their investment was sound.