A man accused of fleecing people of about R78-million in a Ponzi scheme has secured an 11th-hour court order, stopping the sale by public auction of two expensive cars he allegedly bought with investors' money.
The interim order granted to Ingede Mineral Holdings boss Goodman Goqo, 25, also prevents the sale of other goods - including dozens of designer shoes, suits and shirts, many unworn, and expensive watches - seized from his home in Plantations, Hillcrest, in May.
The raid was conducted by Johan Kruger, who the Reserve Bank appointed to take control of Ingede and recover funds for an estimated 3 000 investors.
Goqo, who operated the business from Crooked Lane in Hillcrest, claimed he has done nothing wrong.
However, the Reserve Bank shut down his company, saying it was operating as a bank and was nothing more than a pyramid scheme.
In his urgent application launched on Saturday morning just before the auction went ahead, he promises to get statements from people to "counter the suggestion that the funds were obtained from them illegally or fraudulently".
Indeed, he said, some were concerned that he had been treated shabbily by Kruger, who he described in later papers as "judge, juror and executioner".
He said he intended suing for defamation because his good name and reputation had been seriously damaged.
Goqo said he still intended challenging the bank's action against him and the seizure of his goods, some of which were of a personal nature. He said four of the watches belonged to Osiniq Jewellers in the Hilton Hotel and had just been lent to him.
The cars up for auction - a BMW X5 and an Audi TT coupe - were worth more than R2-million, but would be sold at "bargain basement prices" at auction.
But Kruger, who was opposing the interdict being made final, said Goqo had tried unsuccessfully to challenge his appointment previously and the period for appeal had lapsed.
Now he was in contempt of court because he had not co-operated and handed over all of his assets, including other motor vehicles.
He accused Goqo of trying to frustrate attempts to repay the investors and said the only people suffering were those who had given him their money.
Forensic auditor Eckhard Volker, who is helping Kruger to find investors and assets, said in his affidavit that so far he had obtained 3 479 affidavits from people who had given more than R80m to Goqo.
Most, he said, had been told that their money would be traded on the international stock market and had been promised 30 percent interest a month.
"Many borrowed money and claim to be financially devastated... several sold their assets (including a house) and a significant number used their pensions," he said.
"I have not met one who, with hindsight, has expressed satisfaction with the scheme."
Volker said his analysis of the Ingede bank account showed that there had been no trading, but investors' funds were systematically depleted through cash withdrawals and purchases.
Goqo's own account was funded exclusively from transfers from the Ingede account.
The value of the seized watches was R685 000, and all had been bought with investors' funds, said Volker. More than R5m had been spent on five motor vehicles and, to date, only two had been recovered. He estimated the value of the seized designer clothing to be more than R750 000.
The issue will be back in court next month and, in the meantime, the auction cannot proceed.