EASTERN CAPE – Ludumo Nkungwini (34), Bonke Dayizana (35) and Masixole Madikane (31) were released on a warning by the East London Magistrate’s court on 27 October 2021.
The trio was arrested on the same day by the East London Serious Commercial Crime Investigation team of the Hawks for charges of fraud. It is alleged that during 2013, Nkungwini, Dayizana and Madikane as directors of BLB Investment company are alleged to have lured victims to invest in the company and to expect a 7.5 % interest each month.
It is further reported that there was a contract agreement signed by the victims with the BLB directors for the above percentage to be received on monthly basis on invested funds. The BLB directors according to the victims never lived up to the their agreement. The directors ultimately disappeared with the victim’s monies.
The victims lodged complaints with the East London based Serious Commercial Crime Investigation team for investigation hence their arrest today. The investigations revealed that the company was not a registered service provider according to the Financial Stability Board (FSB) and that BLB was a Pyramid Scheme. The scheme prejudiced the victims cash to the value of more than R1.2 million.
The matter is remanded for 7 December 2021 pending further investigation.