Jack Milne, the managing director of PSC Guaranteed Growth (PSCGG), was on Thursday arrested by the South African Police Service (SAPS) Serious Economic Offences unit in connection with fraud totalling about R250-million, the SAPSS said in a statement.
The arrest followed complaints lodged by investors of the PSCGG fund, it said.
”The accused allegedly committed fraud by luring investments from the general public under false pretenses. Approximately R250-million was allegedly raised in this fraudulent manner,” the statement added.
Milne was arrested at the Johannesburg Central Police Station on Thursday morning at 0900 after apparently handing himself over to police. The statement said that Susan Hillary Bennett (53), an executive director of PSCGG, and Gary Patrick Porritt, CEO of financial services company Tigon, would also hand themselves over to the magistrate at the Johannesburg Regional Court on Thursday.
Police said Porritt was being arrested because Milne and Bennett had allegedly ”acted on his instruction”.
”All three accused will face charges of fraud as well as contravening sections 148, 249, 250 and 251 of the Companies Act (Act 61 of 1973).
”In a related matter Shirine Ismail, a former partner of accounting firm Galahad, which audited Tigon’s books, will appear before the same court today (Thursday) on eight charges of fraud and contraventions of the Income Tax Act,” police representative Captain Ronnie Naidoo said. – I-Net-Bridge