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Sasha Planting and Julius Cobbett
“Defencex loses court battle”
“2%-a-day scheme ordered to pay legal costs, prohibited from accepting deposits.”
“CAPE TOWN and JOHANNESBURG – Net Income Solutions, better known as Defencex, has lost a court battle with the Registrar of Banks. Net Income Solutions was found by Judge James Yekiso to be accepting deposits in contravention of the Banks Act.
Defencex lured more than 200 000 members with its promised returns of 2% a day. There is strong evidence to suggest the scheme was little more than a Ponzi, with new members’ ‘investments’ used to pay the returns of existing members.
On Tuesday June 25, 2013, Judge Le Grange handed down judgment on behalf of Judge Yekiso. The verdict took less than two minutes to announce. The courtroom was filled to capacity, with more than 40 cases on the roll.
Judge Yekiso ruled in favour of the Registrar of Banks, which accused Net Income Solutions of contravening the Banks Act. Net Income Solutions was also ordered to pay the Registrar’s legal costs.
Yekiso prohibited Net Income Solutions from either soliciting or accepting further deposits.
At the time of writing, Reserve Bank head: strategy and communications department Hlengani Mathebula had not responded to a request for comment.
Many Defencex members have asked what would happen if Net Income Solutions lost its case. With other investment schemes (Money Skills is a good example), the usual outcome is liquidation. This means that liquidators are appointed to repay ‘investors’ in a manner that is orderly and fair. If the Reserve Bank applies for liquidation, it has the power to nominate liquidators.”[1]
http://www.moneyweb.co.za/moneyweb-special-investigations/defencex-loses-court-battle
[1]Sasha Planting and Julius Cobbett. Defense X loses Court Battle. http://www.moneyweb.co.za/moneyweb-special-investigations/defencex-loses-court-battle. Accessed 25 June 2013
“Defencex loses court battle”
“2%-a-day scheme ordered to pay legal costs, prohibited from accepting deposits.”
“CAPE TOWN and JOHANNESBURG – Net Income Solutions, better known as Defencex, has lost a court battle with the Registrar of Banks. Net Income Solutions was found by Judge James Yekiso to be accepting deposits in contravention of the Banks Act.
Defencex lured more than 200 000 members with its promised returns of 2% a day. There is strong evidence to suggest the scheme was little more than a Ponzi, with new members’ ‘investments’ used to pay the returns of existing members.
On Tuesday June 25, 2013, Judge Le Grange handed down judgment on behalf of Judge Yekiso. The verdict took less than two minutes to announce. The courtroom was filled to capacity, with more than 40 cases on the roll.
Judge Yekiso ruled in favour of the Registrar of Banks, which accused Net Income Solutions of contravening the Banks Act. Net Income Solutions was also ordered to pay the Registrar’s legal costs.
Yekiso prohibited Net Income Solutions from either soliciting or accepting further deposits.
At the time of writing, Reserve Bank head: strategy and communications department Hlengani Mathebula had not responded to a request for comment.
Many Defencex members have asked what would happen if Net Income Solutions lost its case. With other investment schemes (Money Skills is a good example), the usual outcome is liquidation. This means that liquidators are appointed to repay ‘investors’ in a manner that is orderly and fair. If the Reserve Bank applies for liquidation, it has the power to nominate liquidators.”[1]
http://www.moneyweb.co.za/moneyweb-special-investigations/defencex-loses-court-battle
[1]Sasha Planting and Julius Cobbett. Defense X loses Court Battle. http://www.moneyweb.co.za/moneyweb-special-investigations/defencex-loses-court-battle. Accessed 25 June 2013
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