KEY POINTS
- The AFU secured a preservation order for a R2.2 million house in Hartbeespoort linked to fraudulent diamond investment activities.
- Investigators discovered financial resources from the fraudulent operation within Tarioco (Pty) Ltd, a company belonging to the Forever Diamonds and Gold (FDG) group.
- New investment funds entered the scheme to provide payments for existing investors as the fraudulent system behaved like a Ponzi scheme.
A preservation order granted to the Pretoria Asset Forfeiture Unit (AFU) at Pretoria High Court seizes a R2.2 million house located in Hartbeespoort of North West province based on evidence linking the purchase funds to a fraudulent diamond investment scheme.
Details of the fraudulent scheme
The property the couple Johannes Jakobus Badenhorst (Hannes) and his wife Christelle Badenhorst acquired in May 2022 still carries their joint names in the registration records. Authorities uncovered that Tarioco (Pty) Ltd as a FDG group company established by Louis Petrus Liebenberg produced the money which purchased the property.
National Prosecuting Authority (NPA) spokesperson Lumka Mahanjana indicated that director Badenhorst guided Tarioco as he was involved in a fraud scheme which tricked naive investors through non-existent diamond packages.
Mahanjana confirmed that the prospective lucrative gains were only imaginary.
Investigators uncovered an active investor Ponzi scheme when the group directed funds to purchase personal properties and develop mining operations.
They determined that the group used fresh investment funds to pay current investors, raising concerns about the authenticity of the operation.
Legal process and next steps
The AFU confirmed that Hartbeespoort property does not fall under the assets seized by Tariomix liquidators since the company was involved in the scam.
An application for a final forfeiture order becomes the following step in this process. The house will proceed to public sale following the approval so that funds go into the Criminal Assets Recovery Account according to Mahanjana.
The Bronkhorstspruit Magistrate Court will host the criminal trial against Hannes and Christelle Badenhorst as well as Liebenberg and nine more co-accused defendants on July 8, 2025.
Impact of the investigation
This case examples how financial damage occurs from false plans alongside public agent operations to reclaim stolen funds.
The preservation order acts as a vital tool for authorities because it protects funds obtained from criminal activity and redirects them toward state benefits.
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