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SA's Largest Ponzi scheme uncovered and hundreds
of investors stand to lose millions as SSG helps
investigate false promises.
The
Frankel Investment Scheme operates as an importer and
exporter of Active Pharmaceutical Ingredients (API) from
foreign countries. These ingredients are used by
manufacturers of generic medicines and a large part of the API's are
used in the manufacturing of the anti
retroviral drug prescribed to people who were exposed
to or contracted the HIV/Aids virus.
Founder of
this scheme, Barry Tannenbaum is the son of a founding
shareholder of Adcock Ingram and has a bachelors degree
in science. Tannenbaum promoted his concept to investors
claiming massive returns on investments. Tannenbaum
supported his proposition by showing prospects purchase
orders from major pharmaceutical companies such as
Adcock Ingram, Aspen and Novartis for the respective
API's valued in the many millions.
Another
'dramatis personae' in this scheme is Dean Rees. Rees is
a well known attorney and his personal bank accounts
were often used for investors to deposit their money
into. When an attorney and investor from Routlidge
Modise called a meeting for all investors last week,
Rees, like a knight in shining armour, undertook to act
as the legal representative for the investors. Rees also
explained that he is Chief Operating Officer (COO),
acting on behalf of the whole Frankel Group. However
early in June Rees wrote a letter stating that he had
been revoked as COO. Worried investors cross questioned
Rees at the meeting and he explained
that he had no part in the
alleged fraudulent transactions and stands to lose all
his investments just like everybody else.
SSG Forensic Consultants
discovered that the purchase orders Tannenbaum presented
to prospective investors were forged, as some of the
items indicated are not used by the respective
pharmaceutical companies and the value of the orders
were nowhere near the amount Tannenbaum claimed.
Furthermore, investors ordered their
own audit of the company and found discrepancies
with regards to the debtors books.
The
investigation into the dealings of Frankel Investments came about when
the organisation failed to pay investors for
over a year. Some investors approached SSG to
investigate this matter on their behalf.
If you have any
information or questions regarding this, please contact
us or lodge your comments above. Identities and
information supplied will be kept anonymous.
Please register on our secure /
confidential site if you invested in the scheme and want
your details forwarded to the Trustee. We require
this information to conduct the investigation further.
We will endeavour to recover as much of the funds as
possible!
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