The story about Servaas Louwrens on Carte Blanche proves that investors have no recourse when investing in these dodgy schemes going around. Here is the story that appeared on Carte Blanche:
For me, the name Servaas Louwrens didn't mean much. But Google him and a string of articles will appear on your computer screen. That of a brilliant young foreign exchange investor or of a fraud and a thief, who has evaded arrest. Bongani Bingwa (Carte Blanche presenter): "For more than a thousand investors around South Africa the name Servaas Louwrens has become synonymous with a trail of destruction that has left many of them in financial ruin."Johan van der Merwe (Actor): "To put it mildly, I am very die bliksem in... I could never believe that he could do this to me. I could not believe that he could be so thick skinned as to put people in jeopardy. He has proclaimed a death sentence over my life." Veteran actor Johan van der Merwe, seen on the small screen in the TV drama "Binnelanders," was one of Louwrens' most recent alleged victims. He first met him because he wanted to securely invest his life savings. It seemed that Servaas Louwrens, a self-proclaimed financial guru, was the answer. Johan invested almost half-a-million rand. Servaas promised him monthly returns of up to 12,5 percent.Johan: "The way he commanded himself, I really believed him and he showed me of all the trades that he is doing with all the money that is going on and through his bank, so at night he is behind the computers and he works hard. He did work hard, ja... stealing other people's money."But Johan isn't the only one to have kissed his cash goodbye. There have been allegations against Servaas for the past ten years. His dealings first began when he started a brokerage, Top Gun, which became a cash loan business, using investors' money. The spiral of bad debt escalated, and he and business partner Ivor Killian were arrested. Charges were withdrawn six months later and they claim to have paid back the money.Bongani: "At age 22 Servaas Louwrens had already proven himself a financial whiz-kid having won an investor competition by producing profit yields seven percent higher than his closest rivals. It was with these credentials that he approached investors, saying he had one of the sharpest minds in the business."In 2001, Equilibrium was born as a forex trading company - one that would soon be worth millions, with about a thousand investors. Guaranteed monthly returns of 10% were promised. Money was paid into a bank account in Dallas, Texas and traded in dollars.Jenny van Wyk (Former Equilibrium Agent): "Everything showed it was the right thing. It is a company, there are directors, everything goes through an administration office, and tax... And I paid in my own money... everything showed me that it could be the right thing."Jenny van Wyk from Vanderbijlpark believed in Servaas so much that she became an Equilibrium agent.Jenny: "Because people saw me as trustworthy, I didn't need to do marketing. Everyone just came to the presentations I hosted at my house. One of the directors did the presentation, I didn't do it myself. We couldn't keep up with people's interest in this fantastic opportunity to invest. "Richard de Roos (Head of Forex: Standard Bank): "The risk involved in currency trading and in investing in currency have got to be explained upfront to any investor to make sure that they are able to understand that and understand that the flight of cash out of this market could be fairly quick."Richard de Roos is the head of Forex at Standard Bank and says no percentage returns can never be guaranteed.Richard: "There is no reason why an investor cannot call the market right and achieve a 10% return within a very small period of time, but to guarantee that upfront and to achieve it on a consistant basis would be impossible."For five months it ran smoothly, Jenny got her commission and investors got monthly returns. But then the South African Reserve Bank launched an investigation into Equilibrium. In July 2002, Servaas and his brother, Theuns, disappeared without a trace. Up to R80-million invested went missing and the Texas bank account ran dry. Jenny and her family lost a million rand and she had to answer to people who had invested in the scheme.Jenny: "Two years before this, I was shocked to be diagnosed with cancer, but this I can say was worse. Because this was almost like a death sentence, because how can I face them again?"With police hot on their trail, the Louwrens brothers fled to Botswana. A receipt shows that bush clothing and equipment worth more than R8 000 was bought that same morning. Later that month, Servaas was arrested. He was never officially charged and the money never recovered. While he was on the run, his former business partner, Ivor Killian, was shot nine times in his car, parked on the N4 highway in Mpumalanga. The murder remains unsolved.Bongani: "The Equilibrium cases against Servaas Louwrens were temporarily withdrawn in January 2006, four years after the initial investigation began. Although millions were allegedly lost, to date the police have been unable to formulate a charge sheet against him. Instead they have appointed PricewaterhouseCoopers to produce a forensic report, which they say will come out in three months time."Quintin Jordaan (Attorney): "He's running circles around the justice system, he's running circles around investors..."Quintin Jordaan is an attorney from Pretoria who has been acting on behalf of hundreds of Equilibrium investors.Quintin: "According to me it is not reasonable for the State to drag their feet for seven years. If a matter that was started in 2002 and there's no prosecution by 2009, there must be something wrong."The pattern continued and in 2004 Servaas began trading again under a new company called Indian Ocean Traders. This time he conducted illegal rand/dollar cash trades to avoid a paper trail. After he'd lost R570 000 of new investors money, he was arrested for a third time in 2005 and spent 10 months in jail, awaiting trial. He pleaded guilty to charges of theft and received a suspended sentence, after agreeing to pay back investors' money.Quintin: "Ja, I am flabbergasted about that. It only came to my knowledge afterwards, obviously the investors of the first scheme, which was Equilibrium, weren't informed about this deal with the police which he made privately. It is not up to the State to make such an offer and it is highly frowned upon by the investors."But not even a criminal record stopped Servaas Louwrens from trading in forex again. In 2007, he started a company called U-Hall Trailer Rentals and allegedly also lost millions. Johan is one of several people who have laid charges against him and now stands to lose his house and all his possessions.Johan: "When I do sell the house, I would really walk out with maybe just enough money for furniture removers to move my furniture. I don't know where I am going to find my feet."Bongani: "The North West and the Gauteng police are investigating separate cases against Servaas Louwrens. Both departments refused to grant us an interview, saying it would influence the pending investigations and that the matters were sub judice."In May, a warrant for Servaas's arrest was issued. Then out of the blue, he walked into our offices, wanting to tell all.Bongani: "Why are you talking to Carte Blanche?"Servaas Louwrens: "Bongani, the main purpose of this exercise would be that I want to go to court, I would like to have a fair trial, I would like to pay people back people like Johan van der Merwe who lost money."Bongani: "As we sit here, you are on the run from the police?"Servaas: "That is right."Bongani: "So why don't you hand yourself in and clear your name?"Servaas: "Well, I've spoken to the investigating officer through a lawyer, he said he will refuse me bail, orraait, if I go in. I wanted to speak to him, I wanted to prove that I've lost the money and did not steal it."Bongani: "Isn't that up to the courts to decide?"Servaas: "That's exactly what I..."Bongani: "It's not up to a police officer to decide whether or not you get bail."Servaas: "Yes, but in this country it doesn't work like that..."Bongani: "It is not up to the police to decide whether or not you should get bail."Servaas: "I agree with you, but in practice it doesn't work like that."Bongani: "So, you must be guaranteed upfront that you will get bail?"Servaas: "I want guarantees."Bongani: "Again, that doesn't make sense to me. I can think of no one facing criminal charges, thinking that an upfront demand."Servaas: "Anyone gets bail! Mr Zuma gets bail, anyone gets bail, why am I not allowed to have bail? I went to the police out of my own in this last matter stating through my lawyer that we will provide them with the documentation that states that this is a civil matter, not a criminal matter. He refused. Why must I cooperate with them?"Quintin: "Unfortunately the civil matters have been dealth with and there was no money found. Investors would now be looking for a criminal conviction at least to see some justice served."But seven years on, there's still no sign of the R80-million. Servaas says he's not to blame. Servaas: "Our cash flow was cut off by the reserve bank. I have never told anyone to put all their money into one of my investments in the first place. And I am concerned and sorry about any money lost."Jenny: "I don't understand it. How can he just carry on with it after he knows he has taken R80-million from us?" Desperate to meet his financial commitments, Johan tried to get his invested capital back in June last year. But the cheques that Servaas gave him bounced.Johan: "He issued me these two cheques, one for R550 000 and the other one for R584 704.40."Servaas: "I was under such pressure from him and they were continuously threatening me with Nigerian assassins and I know it sounds strange..."Bongani: "Johan van der Merwe knows Nigerian assassins?"Servaas: "Well, a friend of his does according to him."Servaas is adamant that he never stole investors' money. With Top Gun he says he lost a million rand. He blames the reserve bank's investigation for the R60-million he lost in Equilibrium. And R2-million in U-Hall Trailer Rental because of bad trading. Servaas: "The reserve bank cannot prove that I stole money from people, neither can the police in this case, after seven years they cannot produce a charge sheet. How do you explain that?"Bongani: "Some people just say you are a glorified gambler?"Servaas: "I do have a risk appetite, more than the average person, it is what makes me, I believe, a good trader as well."And he hasn't lost that appetite. Even though he's on the run, he's still trading, under a new company. Servaas: "I know money can be made on the markets. I've got experience and I know I've got a talent to trade. If I sit in jail, unfortunately I cannot help."Bongani: "My biggest problem I have with what you are telling me is why should you be allowed to continue doing this?"Servaas: "Well, I cannot answer you that. If a person comes to you and says, 'I've stolen your money' wouldn't you feel different than a person who comes to you and says, 'I've lost your money'? All I want to do is clear my name, trade money back, make money back, pay people like Johan van der Merwe back..." Johan: "He is Servaas Daniel De Wet Louwrens, is a master manipulator. I think he is just too clever for the police."Whether that's the case or not, is unclear. But Servaas Louwrens remains a fugitive from justice.
