The ringleaders of a Ponzi scheme Fakazile Mazibuko of Ladysmith (53) and Wilson Gazu (54) of Newcastle have been sentenced to 15 years’ jail time on 6024 counts of fraud.
The two operated a notorious investment scheme under the name of Trade For Life (TFL) in Northern KwaZulu-Natal, where investors lost more than R64 million.
Hawks spokesman Captain Lloyd Ramovha stated they “arrested the pair in 2014 after investigations in consultation with the Reserve Bank revealed that Mazibuko and Gazu unlawfully enticed unsuspecting depositors to participate in their scheme with promises of higher earnings from 2011.”
According to the press release, some of the investors received partial interest payments. However, as many started to run out, most people lost their hard-earned capital investments.
“Once the monies were no longer being generated, Mazibuko and Gazu changed the company’s name to Trade Venture Investments and continued accepting from the public.
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The Durban Commercial Crime Court recently convicted the duo for fraud and contravening the Banks Act. Both the accused were found guilty on all 6024 counts. They were sentenced to 15 years behind bars, plus an additional 15 years to run concurrently on all other counts.
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