Greed lured savvy investors into Ponzi scam
BARRY TANNENBAUM – whose Ponzi scheme is said to have defrauded investors of around R10bn – defended himself against allegations that he used illicit means to deceive investors with bogus return promises of 216%/year. He blamed the recession for his failure to pay the promised returns. Among the high-ranking victims of the scam is former Pick n Pay CEO Sean Summers. THE WEEKENDER said there was consensus that greed lured savvy investors and business minds such as Summers into Tannenbaum’s scam. Business Day asked why South Africa’s Financial Intelligence Centre was unable to shut down the scheme in two years after it was briefed by Tannenbaum’s bank, RMB Private Bank, of an unusual transaction he made in 2007.
WHAT OTHERS SAID