CREATING THE HYPE
For a complex scheme of entwining both a Ponzi scheme and a Pump and Dump Scheme, the need is of Paramount importance to find educated, intelligent roll players, Roll Players without a conscience.
In such consequence crimes, the investors herein do not need to prove beyond reasonable doubt that each orchestrated member of Ecsponent Limited casually contributed to the final unlawful outcome; the investors will merely establish common criminal design.
One of the benefits that the company enjoys as a result of its separate “Juristic Personality”, is limited liability. All directors are somewhat protected and can ‘hide’ behind the company, acting as it’s altered “ego”. The actions of the directors are seen as the actions as those of the company. However, it should be noted as a juristic person, the company cannot form any intent to commit an act, criminal or civil. This is because does not have a mind of its own. The company is represented as a juristic person, not a natural person with a mind nor conscience.
‘Lifting or Piercing the corporate veil’ as meaning “That although has been formed as a separate “Juristic personality”, the court needs to look behind the legal personality to the real controllers.”
Section 20(6) Each shareholder of a company has a claim for damages against any person who intentionally, fraudulently or due to gross negligence causes to do anything inconsistent with, herewith represented as “Preference Shareholders”:Section 22(1) the company must not carry on its business recklessly, with gross negligence, with intent to defraud any person or for any fraudulent purpose.
Herein after the company and its directors will be referred to as “The Orchestrator’s”.
TP Gregory (Chief Executive Officer)
DP van der Merwe (Group Financial Director)
RJ Connellan (Chairman)
KA Rayner (Independent non-executive)
BR Topham (Independent non-executive)
E Engelbrecht (Non-executive)
Timbavati Business Consultants (Company secretary)
Nexia SAB&T. (Auditors and Independent Reporting Accountants)
Dirk van der Merwe (Group Financial Director, Executive director)
Floris Slabbert (Director Ecsponent Financial Services)
Anton Hay (Director Ecsponent Financial Services)
Huntrex 299 Proprietary Limited-Trading as Effortless Corporate Finance (Independent Expert)
The orchestrator’s foresaw years ago that the possibility that the Preference Share Program would collapse, but they nevertheless proceeded with their unacceptable, diabolical conduct to raise capital from investors in appreciation of that definite possibility that they would never be in a position to redeem any capital to unsuspecting investors.
WHAT WAS THE ORCHASTRATED PLAN?
“Ponzi or Pyramid Schemes” – Both scams are orchestrated by unscrupulous perpetrators, both scams have similar characteristics based around the same concept. Both are self-sustaining as long as cash outflows can be matched by the monetary inflows.
The essential difference between the two frauds is that a Ponzi Scheme generally only requires investment in something from its victims, with promised returns at a later date. A pyramid Scheme, unlike Ponzi Schemes, usually offer a victim the opportunity to make money by recruiting more people into the scam.
Ponzi-type investments are privately traded, often between individuals that are known to one another, whereas the “Pump and Dump” schemes are typically marketed to the general Public and are traded on the Stock Exchange (JSE) victims and perpetrators are not acquainted with each other.
Ponzi Schemes typically promise specific returns on investments and or include falsified records implying consistent and steady returns, whereas the “Pump and Dump” schemes only come with general and or implied promises of substantial growth. Although with both schemes there is a typical expectation of a profit, “Pump and Dump” is often confused as a week or day scam, this is in fact not quite true as they can operate for long period’s even decades. The only thing both Schemes have in common is that they will inevitably collapse.
The worst predicament you can place any investor in is into a situation whereby these two schemes are actually interlaced. The consequences to investors investing unbeknown to them into this scheme are catastrophic to any investor with high net worth or just a pensioner.
WHAT DOES THE LAW SAY ABOUT THESE SCHEMES?
Pyramid schemes may constitute both a fraud and a theft. In addition, it is a contravention of Sections 11(1) and 11(2) of the Banks Act, which constitutes an offence thereunder Although the common law crimes of fraud and/or theft still apply, the Consumer Protection Act also prohibits (amongst many other things) the initiation, sponsoring, promotion or participation in “fraudulent schemes and offers”, including pyramid schemes.
TRAVELLING BACK TO 2013: No provision has been made for 2013 tax as the group has no taxable income:
The Group’s Preference Share Programme and Note Programme, which raise capital to fund investments, are instrumental in facilitating the Group’s expansion strategy.
The company intends offering multiple tranches of preference shares to the public in the future, under the Programme. The Prospectus relates to the first tranche issued under the Programme. The company Financial Services is registered with the FSB as a Financial Services Provider, Ecsponent Financial Services (licence number 32968) to provide intermediary services between product providers and the public in general.
RAZZMATAZZ – CREATING THE HYPE
Ecsponent Limited, had orchestrated the perfect plan, starting off in 2013, with their first attempt at the Preference Share Program. Ecsponent Limited needed to be taken seriously, they were a failing business deep in debt. They had one shot at pulling off the best scam of all time. The process starts when some shareholders of Ordinary Shares indulge in the company’s false publicity
First John Daniels Holdings changes their name to Ecsponent Limited, they then create new logo’s, branding - a new professional illusion of an established company. Ecsponent Limited as a company is only regulated by the JSE and CIDB and the Reserve Bank
Secondly, they employ an army of well-educated people, from Executives to Auditors right through to Secretaries and staff.
Thirdly they lay out a small fortune on advertising, bill boards, television and other electronic media. There are no fewer than 32 Brand Adverts, 168 discussions on “Die Groot Ontbyt”, various Faffa and Bella Adverts, prize money on “Getroud met Rugby” and then the “Win a boat trip with Floris Slabbert. Newsletters indicating – Guarantees, Surety, Peace of Mind, Redemptions and Directors’ taking personal responsibility.
They had road shows, and no surprise here…. Not once did the word “Convertible” get mentioned.
The aggressive marketing of the Preference Shares is the “Pump” part as they induced, influenced and manipulated investors to invest with Ecsponent Limited.
During the period as from September 2014 there were illustrations on their balance sheets indication great exceptional growth within the company, creating a mindset for potential further investments.
To create further confusion, the exact same logo and branding been used by the Subsidiary Ecsponent Financial Services under the Directorship of both Floris Slabbert and Anton Hay.
REFER TO TAB PONZI TO SEE “PROMMISES AND GUARANTEES”