CAPE TOWN – Investors in Defencex, the Ponzi scheme masterminded by Chris Walker, can now register claims to money they invested and subsequently lost in the scheme via a website. Walker, meanwhile, continues to promise high investment returns from a business selling holy water.
Investors – who purchased ‘points’ paying 2%-a-day returns via a Defencex-linked website trading as Net Income Solutions – are now able to register their claims on the Repayment Administration Web Application (RAWA), www.rawa.co.za.
To get the word out, a national advertising campaign will run across print, online and broadcast media and is set to launch on March 15.
SMSes will also be sent to the cellphone numbers listed in Defencex’s records. The SMS campaign kicks off on March 12 in batches of 10 000 a day.
According to an order granted in the Western Cape High Court this week, investors have three months from the date of finalisation of the court order (April 29) to register their claims on the RAWA site.
Among the ten names that Defencex investors may have encountered, all amounting to the same scheme, are EFT4me, Cycle4Dollars, Net Income Solutions, Online Mega Profits Academy and First Wealth is Health.
‘Investors won’t get everything back’
Having amassed more than R800 million from 171 000 investors between April 2012 and February 2013, Defencex could account for approximately R352 million when its accounts were frozen by the South Africa Reserve Bank (Sarb) on February 28 2013.
It is thus highly unlikely that investors will receive their entire deposit back.
According to the order, the minimum dividend proposed to qualifying investors is 65% of the amount deposited.
How repayment works
In order to create a RAWA profile and register their claim, investors will need to provide their Defencex login details (such as username and password), as well as their cellphone numbers.
Once these details have been verified, the investor will be directed to provide proof of identification, either by way of a driver’s licence or ID book.
The final step to reclaiming an investment – after providing login details, a cellphone number and proof of identification – will be to provide proof of the original deposit via a deposit slip or EFT record.
An e-wallet statement printed off the Defencex website is not acceptable as proof of investment, according to the court order.
That the onus will be on investors to provide proof of their investments may prove challenging, particularly where cash deposits were made and deposit slips have since been lost.
According to Sarb-appointed repayment administrators, PwC, many of the investors were based in townships and made direct cash deposits into the Defencex bank account.
Investors can call 012 429 0033 for more information.
Walker’s Defencex website (www.defencex.com) is now advertising a new business, launched towards the end of 2014.
Details of the new business are found on www.mightysoul.net, where you’ll read, “Mighty Soul is a sacred anointing liquid that has been consciously and carefully created to serve as a vehicle for the reception of universal conscious energy and Divine Blessing.”
Along with promises “to become, to do, and to have, all that you truly desire in life” when drinking “this holy libation”, Mighty Soul offers opportunities to become a distributor. Distributors earn money selling the product and via commission based on the sales of people who they introduce to the Mighty Soul business opportunity. The website refers to this as “fractal marketing”.
When entering the word “free” on the Mighty Soul website to become a distributor, the following message pops up: “Are you sure you want to join under: Christopher Walker, Username: free, Distributor Number: MS00-000-005.”
Users are advised to store their bottles of Mighty Soul out of direct sunlight. “The frequencies in the bottle are sensitive to sunlight so we cannot guarantee their efficacy if they have been exposed to direct sunlight,” according to the website.
PwC has referred a case against Walker to the Hawks, which had not responded to repeated requests for comment on whether it is pursuing a case. In February last year, the Hawks told Moneyweb it was not investigating Net Income Solutions.