Trial date looms for Ponzi scheme accused

The investigation into two men accused of misappropriating R21m in investors’ funds in just 2½ years is almost complete, and the case has been transferred to the specialised Commercial Crimes Court.

Stockbrokers Michael Rathbone and Leon Lewitton, who relocated to Sedgefield after being released on bail of R50,000 each in December, said they had since moved back to Port Elizabeth and were now living in Kragga Kamma Road.

Dressed to the nines, the men appeared briefly in the Port Elizabeth Magistrate’s Court on Friday, where they were also warned by the prosecution that there was now an updated list of state witnesses whom they were not allowed to contact or interfere with.

The couple, the directors of Helping Hand Invest (Pty) Ltd at the time, are accused of splurging their clients’ investments on fancy holidays, luxuries and gambling between May 2017 and August 2019.

Accused of running a Ponzi scheme, Rathbone, 31, and Lewitton, 29, face 191 counts of fraud.

The office of Helping Hand Invest, which was located in Newton Park, has since shut down.

It also emerged on Friday that the men had now hired prominent criminal defence attorney Alwyn Griebenow to represent them.

State advocate Tjaart van Zyl asked that the men be warned to appear in the Port Elizabeth Commercial Crimes Court on March 18, when a trial date could be arranged.

In the meantime, he would supply Griebenow with copies of the docket.

The duo, who have already indicated they will plead not guilty to the charges, are alleged to have convinced clients to invest their savings with Helping Hand, with promises of a speedy and lucrative return with interest of up to 45% a year.

The state alleges the money was instead deposited into their personal bank accounts, and spent on trips abroad, luxury items and gambling at casinos across SA.

Money from one investor was then allegedly used to satisfy the next until the business ultimately crashed.

A string of clients were ultimately left penniless as a result.