When it comes to Mirror Trading International’s liquidation processes, there appears to be no cohesiveness.
Nobody recovered anything in February except Johann Steynberg, the owner on paper.
Then, assuming Mirror Trading International would be labeled an “illegal scheme” (which had yet to happen despite the FSCA officially declaring MTI to be an “illegal business” in December 2020), liquidators offered MTI victims a recovery agreement.
Submitted claims from net-winners were included in the contract for whatever reason, although liquidators pledged to process claims from net-losers first.
Liquidators have now summons eighteen MTI workers to court, seemingly out of nowhere.
Liquidators are asking R4.6 billion (USD 291 million) from the scammers as a group of net-winners.
According to Jan Vermeulen of MyBroadband, eighteen workers have been identified as “masterminds” of the scam.
Johann Steynberg is number one on the list.
Charlie Ward (#2)
Usher Bell, No. 4
Cheri Marks, number seven
Tshidi Ramanamane (#8)
Tom Fraser (nine)
Liz Malton (10)
Romano Samuels (#11)
Jaco Eckley (12.)
Vince Ward (#13)
Leonard Gray (#14)
Andrew Caw (15.)
Nerina Steynberg, 16
18. Don Nikomo and 17. Gerald Lassen
“[The defendants] were aware at all relevant times that MTI was trading insolvently as well as of the conduct undertaken and constituted fraud against MTI’s creditors,” according to the summons.
As a result, they were all complicit in MTI’s fraudulent or irresponsible conduct, according to the liquidators.
The liquidators sought the court to order defendants to pay either the rand or bitcoin value, whichever is higher at the time the order is issued.
The liquidators also requested that the court impose fines on the defendants equivalent to the sums owed.
As a result, if the defendants prevail, they will pay double the sums mentioned below, in addition to MTI’s R4.7 billion debt.
On paper, this sounds fantastic. It’s unclear how it’ll be enforced, what option the MTI fraudsters have in court to prolong the proceedings, and what would happen if they just ignore it.
Clynton and Cheri Marks, alleged MTI owners and key beneficiaries, were approached by MyBroadband (right).
Cheri Marks used the tired justification of “this doesn’t seem right.”
The court papers were served Tuesday, according to Marks, and their attorneys are analyzing them.
“In the meanwhile,” Marks remarked, “we can say that there are some extremely troubling parts of the application.”
“We have consistently disputed that MTI traded illegally or irresponsibly with our knowledge.”
South Africa features a confusing liquidation procedure, rather than seizing everything from everyone involved, appointing a single Trustee or Receiver, having them evaluate victim claims, and then making distribution payments to victims.
Not to detract from the process, but recalling the net-winners appears to be a step in the right direction, but what this implies for victims is unknown.
According to Marks, unless the essential documentation is made public, a steady onslaught of paperwork with conflicting figures benefits no one while the liquidators rack up superfluous fees that might be used to compensate members.
Mirror Trading International was nothing more than a classic Ponzi scam. People have lost money as a result of Marks and the other fraudsters described above. It’s not complicated.
The fact that Marks may still use this just demonstrates how incompetent South African authorities are at controlling MLM Ponzi schemes.