Durban Ponzi Scheme Saga: Court Discovers Alleged New R35 billion Scam During Bail Hearing

A Durban court has heard perplexing allegations against Brandon Naicker, dubbed Muruvan Egambaram, and co-accused Abraham “Jason” Pillay during their bail application for an alleged R180 million Ponzi scheme. The two men are accused of defrauding investors, including pensioners, driving many into financial despair.

The allegations deepened as Hillcrest police's Detective Constable Simphiwe Maphumulo presented evidence of another fraudulent scheme by Naicker—a R35 billion project in Gauteng, Ekurhuleni, designed to further exploit investors. The court listened attentively as Detective Maphumulo disclosed the extent of Naicker’s continued fraudulent activities, even while being aware of ongoing investigations.

The pair, up against substantial charges including theft and fraud, are currently involved in over 80 cases being investigated by the Directorate of Priority Crime Investigation (Hawks). Maphumulo provided the court with concerning evidence, including an affidavit and extracted WhatsApp conversations, revealing Naicker’s deceitful assurances of incredible investment returns.

Naicker’s fraudulent activity extended through his company, Brandon Naicker PTY LTD, advancing the R35 billion development scam. Senior State prosecutor Joel Kisten also uncovered the trail of investors' funds—misused to pay earlier investors and for personal extravagances, such as properties and gambling, through their firm, Branson Capital.

The accused’s intentions have been brought under scrutiny, as discrepancies between Naicker's claims and the CIPC records question his honesty. Naicker insisted he had disassociated from Branson Capital in the previous year, a statement that the financial records and his director status as of July sharply contradicted.

Advocate Dhamien Reddy, defending Naicker, opposed the notion that his client might flee, citing his voluntary court appearance as proof. In contrast, Waseem Hoffese, representing Pillay, argued his client’s strong community ties and familial responsibilities as reasons to grant bail.

Detective Maphumulo faced criticism for wavering testimonies regarding Pillay’s bail suitability, an issue brought forth by Hoffese. However, Kisten emphasized the severity of the charges and the high likelihood of the defendants attempting to escape due process, given the strong case against them and the grim prospect of conviction.

With Magistrate Gwendolyn Robinson set to deliver the verdict later in the week, the court awaits a decision that will impact not only the futures of Naicker and Pillay but also that of the many investors they allegedly deceived.