/ 18 August 2009

Tannenbaum estate sequestrated

The estate of Ponzi scheme fraud suspect Barry Tannenbaum was sequestrated on Tuesday in the high court in Johannesburg, attorney Ian Levitt said.

Levitt — who acts for one of the Ponzi scheme’s victims — told the South African Press Association the case could now move forward with certainty.

”The powers a provisional trustee has are limited compared with a trustee of a sequestrated estate. The latter has far-reaching powers.”

Tannebaum’s legal team had opposed the sequestration application.

”They wanted to postpone the final hearing of the matter but the court wouldn’t have it.”

Now that Tannenbaum’s estate had been finally sequestrated, the Australian authorities might look upon the case as ”more certain”.

They would be asked to study the immigration status of Tannenbaum, currently living in Australia.

Although there was an extradition treaty between South Africa and Australia, the last two extradition applications brought by South Africa were unsuccessful.

The reasons given were that local prisons were in an appalling state with both violence and HIV/Aids rampant.

Tannenbaum allegedly promised hundreds of investors astronomical returns linked to his pharmaceuticals business. He has denied wrongdoing, blaming his company’s situation on the global meltdown. — Sapa