Ladysmith Ponzi scheme mastermind flees with millions

SABC News Ponzi scheme - Ladysmith Ponzi scheme mastermind flees with millions

A man believed to be running a Ponzi scheme in Ladysmith in the KwaZulu-Natal midlands has fled allegedly with millions of rand belonging to unsuspecting victims.

The victims claim that they were duped into believing that they will receive a double return on their initial investment.

On Wednesday, tensions heightened when a mob torched and looted the man’s house, demanding their money back. An angry mob were looking for Sphelele Mbatha.

The angry mob stormed into Mbatha’s offices and looted them before proceeding to his house.

An elderly woman says she invested most of her money and was told come back after 15 days. She is distraught.

Victims say Mbatha promised a 100% return if they invested in his Bitcoin Wallet business.

It’s believed that Mbatha closed shop when he was unable to deliver on his promises.

Three days ago, thousands of people queued outside his offices in Ladysmith to demand their money back but were told to return the following day.

Other victims claim that they were charmed into investing all their money.

Mbatha has been described someone with a lavish lifestyle.

Those who knew him say he would often give out money to strangers in the streets.

Three days ago Mbatha sent a voice note to his victims… assuring them he would not disappear with their money.

Even after that message – Mbatha disappeared without a trace and police are yet to make a breakthrough.


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