SA's Largest Ponzi scheme uncovered and hundreds of investors stand to lose millions in The Frankel Investment Scheme. That operates as an importer and exporter of Active Pharmaceutical Ingredients (API) from foreign countries. These ingredients are used by manufacturers of generic medicines and a large part of the API's are used in the manufacturing of the anti retroviral drug prescribed to people who were exposed to or contracted the HIV/Aids virus.
Founder of this scheme, Barry Tannenbaum is the son of a founding shareholder of Adcock Ingram and has a bachelors degree in science. Tannenbaum promoted his concept to investors claiming massive returns on investments. Tannenbaum supported his proposition by showing prospects purchase orders from major pharmaceutical companies such as Adcock Ingram, Aspen and Novartis for the respective API's valued in the many millions.
Another 'dramatis personae' in this scheme is Dean Rees. Rees is a well known attorney and his personal bank accounts were often used for investors to deposit their money into. When an attorney and investor from Routlidge Modise called a meeting for all investors last week, Rees, like a knight in shining armour, undertook to act as the legal representative for the investors. Rees also explained that he is Chief Operating Officer (COO), acting on behalf of the whole Frankel Group. However early in June Rees wrote a letter stating that he had been revoked as COO. Worried investors cross questioned Rees at the meeting and he explained that he had no part in the alleged fraudulent transactions and stands to lose all his investments just like everybody else.
SSG Forensic Consultants discovered that the purchase orders Tannenbaum presented to prospective investors were forged, as some of the items indicated are not used by the respective pharmaceutical companies and the value of the orders were nowhere near the amount Tannenbaum claimed. Furthermore, investors ordered their own audit of the company and found discrepancies with regards to the debtors books.
The investigation into the dealings of Frankel Investments came about when the organisation failed to pay investors for over a year. Some investors approached SSG to investigate this matter on their behalf.
If you have invested in the scheme you need to report it to the SAPS and alos SSG Forensic Consultants.
As, I always warn clients "if something seems to good to be true then it is". Lately a number of schemes are unfolding don't be a victim always get proper advice high returns mean high risk.
