Alleged Ponzi schemer Fredrick Greyling’s case postponed yet again

Cape Town - The State’s case against alleged Ponzi scheme operator Frederick Greyling (alias Frik Strauss) which was set to start at the Bellville Commercial Crimes Court on Tuesday, has again been postponed – this time until April 12.

The latest postponement was allowed by the court to give the Legal Aid advocate more time to conclude consultations with Greyling.

Greyling is charged with 20 counts of fraud, contravention of the Banks Act, contravention of the Financial Advisory and Intermediary Services (FAIS) Act and money laundering.

He last appeared in court in January when the case was postponed until yesterday for the same reasons.

In October last year, another hearing of the case was postponed for the complete transcription of the record for the Legal Aid attorney who had come on record at that time.

Greyling is charged with having devised a scheme, A Million Up Financing (Pty) Ltd, as far back as September 2004. That business, in which his then wife, Susanna Strauss, was the only director, was registered in George.

Greyling would solicit funds from members of the public on the basis that the capital would be invested in livestock and other business ventures.

The NPA said Greyling offered investors interest of more than 10% a month, or at a rate far in excess of prevailing market rates. The returns to investors would be paid from money from their own investments and investments by other investors.

The NPA explained that a Ponzi scheme differs from a pyramid scheme in that the returns were not dependent on any other intervention by the investors – such as recruiting other investors to participate in such a scheme.

The business was not registered with the Financial Services Board, now the Financial Sector Conduct Authority, or registered in terms of the Banks Act as required by a deposit-taking institution.

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Cape Argus

• Alleged Ponzi schemer Fredrick Greyling’s case postponed