BANKRUPT BANKER
South African businessman Barry Tannenbaum, accused of defrauding hundreds of investors in what may be the country's biggest corporate fraud
Sunday, 14 June 2009
South African businessman Barry Tannenbaum, accused of defrauding hundreds of investors in what may be the country's biggest corporate fraud, denied any wrongdoing and blamed his company's woes on the economic crisis.
"As has happened with other companies that have from time to time found themselves in a financial predicament, particularly in the present climate, I have found myself in such a situation," he said in an e-mailed statement on Friday.Tannenbaum, who lives in Australia, said he had defrauded no-one and described accusations against him as wild allegations, speculation and conjecture."In short, the hype at this stage is such that whatever I say, will be disbelieved. Time will demonstrate that I have defrauded no-one," Tannenbaum said.
But Ian Levitt, representing investors who had put around 400 million rand into Tannenbaum's operation, said he had secured a temporary court order a week ago for the sequestration of the businessman's assets in South Africa."He is in all essence a sequestrated person, the estate has been sequestrated. We are in the process of gathering as many investors as possible so that we can get an urgent appointment of a liquidator who can then take charge of (the) assets," Levitt said.Tannenbaum was said to have lured investors with the promise of 200 percent annual returns linked to pharmaceutical imports and was accused of forging AIDS drug orders to give reassurance when money started to dry up.
