High Court seizes R4million tied to diamond dealer Louis Liebenberg’s alleged fraudulent investment scheme
A frustrated Louis Liebenberg vented his frustrations in court and ended up having to consult a doctor on whether he can understand the court proceedings.
Image: Zelda Venter
The High Court in Pretoria has granted the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) a final forfeiture order under section 48 of the Prevention of Organised Crime Act (POCA). This order relates to an impressive amount of R4 million, plus interest, held in a Standard Bank account under the name of ZencoCare (Pty) Ltd, linked to diamond dealer Louis Liebenberg.
According to the National Prosecuting Authority, ZencoCare formed part of the Forever Diamonds and Gold group of companies, with its sole director, Liebenberg's wife, Desiree Liebenberg.
"Both are implicated in an unlawful investment scheme that lured members of the public, locally and abroad, to invest in diamond parcels with the promise of lucrative, short-term returns. Investigations revealed that no such diamond parcels existed.
"Instead, investor funds were misappropriated and used to pay earlier investors, in a manner typical of an unlawful multiplication (Ponzi-type) scheme," explained NPA spokesperson, Lumka Mahanjana.
She said, in 2024, ZencoCare facilitated a transfer of R5 million to attorneys, with R1 million allocated to Eskom for mining-related activities.
"However, the crucial R4 million, along with the accrued interest, has now been secured as forfeited funds to the State. Initially, these assets were intended for the acquisition of West Coast Resources (Pty) Ltd, a diamond mining enterprise located in the Northern Cape," Mahanjana said.
The funds forfeited will be channelled into the Criminal Assets Recovery Account (CARA), a vital instrument ensuring that proceeds from criminal enterprises are repurposed to aid the fight against organised crime and corruption.
The NPA has heralded the court's decision as a landmark achievement, reinforcing the message that the proceeds of criminal activity will not benefit their perpetrators.
The Liebenbergs, alongside seven co-accused individuals, face charges that include fraud, theft, racketeering, and money laundering.
"They are due to appear before the Bronkhorstspruit Magistrates’ Court on November 25, with both Louis and Desiree currently in custody, while their co-accused await proceedings on bail," the NPA said.
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