A pair have been accused of operating a pyramid scheme.
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- A North West couple was granted R10 000 bail for his or her alleged involvement in a fraud and cash laundering scheme value R65 million.
- Bennie Otto, 68, and his spouse, Johanna Otto, 69, appeared within the Potchefstroom Justice of the Peace’s Courtroom on Wednesday.
- They allegedly lured folks to speculate cash into their enterprise, which was discovered to be a pyramid scheme.
A North West couple allegedly concerned in a R65 million fraud and cash laundering scheme has been granted R10 000 bail.
Bennie Otto, 68, and his spouse, Johanna Otto, 69, appeared within the Potchefstroom Justice of the Peace’s Courtroom on Wednesday.
The couple allegedly received folks to speculate cash into their enterprise, which was discovered to be a pyramid scheme.
In accordance with North West Hawks spokesperson Captain Tlangelani Rikhotso, investigations into the alleged fraud concerned a Potchefstroom-based firm referred to as RSA Search (Pty) Ltd which had an lodging reserving web site with the identical identify.
He stated Bennie was the corporate’s director.
Rikhotso added from 2011, Bennie allegedly lured roughly 120 folks into investing in his enterprise and promised them a 3% revenue share per thirty days from the earnings he would generate from promoting and subscriptions.
The corporate, nonetheless, collapsed because it was not producing sufficient earnings, and thru investigations, it was revealed it allegedly operated like a pyramid scheme, stated Rikhotso.
He added: “Funds from new buyers had been used to pay the excellent dividends of earlier buyers and plenty of buyers allegedly by no means obtained their a refund.”
Bennie was charged with 69 counts of fraud and 31 of cash laundering, whereas Johanna was charged with a single rely of cash laundering.
They had been every launched on R10 000 bail, and the case was postponed to 23 November 2022 for directions for the legal professional.