Greed lured savvy in­vestors into Ponzi scam

Finweek English Edition - - MAIN STORIES THIS WEEK -


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.


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