Top South African Ponzi Scheme Boss Busted


A pensioner and former police captain, who
was allegedly defrauded of 400,000 rand, from his pension pay-out, told the Pine-town Magistrate’s
Court on Wednesday 15 May 2019, that he was mesmerised into believing, that his money
would grow, and he would get interest of 8,000 rand a month, if he invested with Global Investments
Club. Mogan-berry Govender, the 70-year-old former
police officer, was the first witness to take the stand in the trial, against Mervyn Dennis,
who owned the Durban-based company, and his sister, Mary-Anne Peter. They are accused of running a 139 million
rand Ponzi scheme, which targeted pensioners. The trial finally proceeded in the Pinetown
Magistrate’s Court yesterday, 20 May 2019, more than 15 years, after Govender and hundreds
of other investors lost their money. The fraudsters allegedly convinced pensioners
to invest their money, with promises of good returns on the Johannesburg Stock Exchange. The former police officer took a package,
and invested 400,000 rand of his 800,000 rand pension pay-out with Global Investments Club,
in 2003. He received 70,000 rand in interest, and never
got his initial investment back. Govender said, he was promised by Dennis,
that his investment of 400,000 rand would earn a return of 8,000 rand a month. He said, Dennis had prayed over his cheque
when he handed it to him in his office, with his sister, Mary-Anne Peter, also present
in the office. Govender said he got to know Dennis, through
Dennis’ father and uncle, with whom he attended church, and who knew he had taken a pension
package after 34 years in the police force. “He placed his hands on mine, and his sister
joined. He prayed for my money to grow. His prayer would have convinced the devil
himself. I was mesmerised by his prayer,” said Govender. He said he did not get the interest for the
first six months as promised, and then came across an article about Dennis’s problems
with the South African Revenue Service. He then started asking questions. “There were meetings with him, myself and
two other investors, where he told us, that the Sars issue was being handled, and that
he would pay us every single cent,” said Govender. Govender admitted receiving 70,000 rand in
cheques and direct deposits, on different occasions in 2003 and 2004. However, as that was not what he was promised,
he opened a criminal case against Dennis in 2004. Under cross-examination, advocate Mohamed
Essop asked Govender, why he had invested money with somebody he hardly knew, as a former
police captain with many years of experience. Govender responded, that he was taken in by
Dennis’s beautifully decorated offices, his speech, and the certificates on his wall. Essop said, Dennis would tell the court, that
it was Govender, who approached him, and arranged their first meeting. The case is still in progress at court. Please check in the description box below,
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