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Pretoria High Court Freezes Bank Account Linked to Ponzi Scheme

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Pretoria,High Court,Preservation Order

The Pretoria High Court has granted a preservation order of over R4.3 million to freeze a bank account connected to Piggy Farm Trading (Pty) Ltd, which is involved in a Ponzi scheme. The company, which sold virtual pigs, promised investors monthly returns and pig replacement if one died. An investigation by the National Consumer Commission revealed fraudulent practices and lack of transparency in the scheme.

Pretoria’s Asset Forfeiture Unit secured a preservation order surpassing R4.3 million from the Pretoria High Court on 8 April. The order aimed to freeze a bank account linked to Piggy Farm Trading Ltd, implicated in a Ponzi scheme.Piggy Farm,” selling virtual pigs for R2750 each. The company promised investors monthly returns of R550 for 12 months, assuring them of pig replacement if one died, making it “risk-free.

Despite claims of a Durban CBD address and various branches, Piggy Farm’s operations raised doubts about the existence of a large-scale farming enterprise matching the investment sums. “The AFU consequently determined that there exists no foundational business model, and incoming investors were remunerated from prior investments to sustain the scheme,” said Mahanjana.Martin Mafojane, Pretoria AFU’s Regional Head, welcomed the preservation order and cautioned against high-return schemes exceeding reputable institution rates.

 

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