Durban – The Assets Forfeiture Unit swooped on the assets of Coinit Trading that allegedly fleeced thousands of investors across the country of millions of rands.
Armed with an order from the Pietermaritzburg High Court investigators forfeited a five aircraft that included a helicopter and other property belonging to Coinit and and other liquidated business entities worth R106m.
All the forfeited property includes 11 pieces of land in Dundee, five aircrafts and a motor vehicle.
Natasha Kara, Regional spokesperson for the Directorate of Public Prosecutions in KZN said the matter against Coinit was in connection with the contravention of the Financial Advisory and Intermediary Act 37 of 2002 and the Banks Act 94 of 1990.
“This order follows a preservation order to freeze the assets granted in November 2020 by the same court,” Kara said.
“Coinit had placed advertisements on its website and in different newspapers calling for people to invest with them. As a result of the advertisements, a number of people deposited funds into Coinit’s bank accounts. In terms of the Financial Advisory and Intermediary Act and the Banks Act, Coinit was not authorised to accept deposits from the investors,” she said.
Kara said in the investment agreements with investors and as per the advertisement, Coinit said the money would be used by the company and its directors to purchase rigid trucks, older horses, newer horses, TLB’s, front end loaders and dumpers – plant materials.
“However, the funds were used to purchase immovable properties, cars, aircrafts and shares in other companies,” she said.
Kara said the forfeited assets will be handed into the custody and control of the liquidators of Coinit and the other liquidated entities, once the forfeiture order takes effect.