Alleged R500 million pyramid scheme scammers remanded in custody

KWAZULU-NATAL – The founder and director of an investment company based in Pietermaritzburg, Supreme National Stock Holdings, Sandile Sibiya (29) and his accomplice Nomalizo Sibiya (37) briefly appeared in the Pietermaritzburg Magistrates’ Court on Monday, 23 December 2019, for alleged fraud and contravention of the Bank Act.

Between June 2019 and November 2019 the accused were receiving deposits from potential clients as an investment into their company. They were lured with a promise the company allegedly would utilise their investments to purchase horse and trailer trucks that will be working in the coal mines.

The income derived from the transporting of the coal was to generate monthly returns for the investors. Approximately R500 million was deposited to their company account however no returns were paid to some of the investors.

As a result, a case of fraud and contravention of the Bank Act was reported at Pietermaritzburg police station and the case docket was allocated to Hawks members from Pietermaritzburg Serious Commercial Crime unit for investigation. On Sunday, the two were arrested and charged accordingly.
The case was postponed to 10 January 2020 for formal bail application.