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Alleged pyramid scheme in Dannhauser leads to violence as police arrest two

. They conducted a search of the premises and found R790 000 in cash.

There was a day of drama in Dannhauser after a row over an alleged pyramid scheme turned violent in the town.
A police spokesman in Durban, Lt Col Thulani Zwane, later confirmed that on Monday two men were later arrested and charged with fraud.

Earlier, Lal Badrinarain, who owns a security company in Dannhauser, told the Courier that he had received news that local people had been visiting a shop on Newcastle Road and investing amounts of R5000 with a promise that the amount will be doubled within a week.
“The scheme had been running for a few weeks. However, upon investigating we discovered that the company was not properly registered as a financial institution and had no certificate from SARS – and was actually operating illegally,” Mr Badrinarain said.
On Monday he reported his concerns to the local police who, according to Mr Badrinarain,  said they were hesitant to take action as the money was being invested voluntary and if any individual felt that they had been defrauded, ‘they could open charges themselves’.
However, later in the day a large crowd gathered outside the shop, demanding that their money is returned. Mr Badrinarain said the crowd was between 80 –100.

“Police were called in from neighbouring towns. They conducted a search of the premises and found R790 000 in cash. But there could have been more. A search was also done at a house which the people rent in Newtown and more cash was found.”
By now the crowd was restless and it was dark and although they had receipts after investing their money, many were worried that they would lose everything.
“When three suspects were pushed into a police van the crowd got really rowdy. Pepper spray was deployed and I heard some shots being fired into the air.” Mr Badrinarian said.
It is understood that the two men who were later charged are Nigerian nationals. Mr Badrinarain, said people were waiting to see now if they would ever see their money.

The two accused are expected to appear in court tomorrow.

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Terry Worley

Terry Worley has been associated with the Courier for many years and is involved in the community covering a variety of issues affecting residents. He has a passion for local politics and for the history of the area.

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