NPA
The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit has secured a final forfeiture order to seize some R4 million in a bank account linked to alleged diamond investment scam artist Louis Liebenberg and his wife Desiree, marking a significant step in recovering proceeds from a Ponzi-type scheme that defrauded investors out of millions by promising lucrative returns on non-existent diamond parcels.
This court victory underscores the NPA’s ongoing efforts to dismantle financial networks tied to organised crime, with the forfeited funds set to bolster the Criminal Assets Recovery Account (CARA) and support anti-corruption initiatives across South Africa. The order, granted by the High Court in Pretoria on Tuesday, 16 September 2025, under section 48 of the Prevention of Organised Crime Act (POCA), targets money held in a bank account under ZencoCare (Pty) Ltd, a company solely directed by Desiree Liebenberg. NPA Regional Spokesperson Lumka Mahanjana explained that the funds are “expected to be paid into the Criminal Assets Recovery Account (CARA), ensuring that the proceeds of crime are redirected to the state to strengthen the fight against organised crime and corruption.” The Liebenbergs, along with seven co-accused, face a raft of charges including fraud, theft, racketeering, money laundering, and contravening the Companies Act, with their next court appearance scheduled for 25 November 2025 at the Bronkhorstspruit Magistrates’ Court. As South Africa continues to grapple with sophisticated financial scams that prey on vulnerable investors, this forfeiture not only recovers stolen assets but also sends a strong message that criminal enterprises will be stripped of their ill-gotten gains.
The Forever Diamonds and Gold scheme, masterminded by Louis and Desiree Liebenberg, operated as a classic Ponzi operation, luring members of the public—both locally and internationally—to invest in purported diamond parcels with promises of high, short-term returns. Investigations revealed that no such diamonds existed; instead, new investors’ money was used to pay earlier ones, sustaining the illusion of profitability until the scheme collapsed. “The couple is implicated in an unlawful investment scheme that lured members of the public, locally and abroad, to invest in diamond parcels with the promise of lucrative, short-term returns. Investigations revealed that no such diamond parcels existed. Instead, investor funds were misappropriated and used to pay earlier investors, in a manner typical of an unlawful multiplication [Ponzi-type] scheme,” Mahanjana said. Victims, many of whom lost life savings, reported the scam to authorities in early 2024, leading to the Liebenbergs’ arrest in December 2024 alongside their accomplices.
Court documents and NPA statements detail how the Liebenbergs used companies like ZencoCare as fronts to launder funds. ZencoCare, registered in 2018, was ostensibly a healthcare entity but served as a vehicle for siphoning scam proceeds. The R4 million in its account was frozen in January 2025 under a preservation order, pending the final forfeiture granted this week. This amount represents only a fraction of the estimated R200 million defrauded from investors, according to preliminary forensic audits by the Hawks and the Special Investigating Unit (SIU). The SIU’s involvement, authorised by President Cyril Ramaphosa in March 2025, expanded the probe to include related entities under the Forever Diamonds and Gold group, uncovering a web of shell companies and offshore accounts in Dubai and Mauritius used to hide assets.
Louis Liebenberg, 52, a self-styled diamond dealer with a history of controversial business dealings, and his wife Desiree, 48, remain in custody after their bail applications were denied in July 2025 due to flight risk concerns. The couple’s lavish lifestyle—featuring luxury cars, properties in Sandton and Cape Town, and overseas trips—contrasted sharply with the financial ruin inflicted on victims, many of whom were retirees or middle-class families enticed by social media ads and word-of-mouth promises. One victim, a 65-year-old pensioner from Pretoria, told the court during bail hearings that she lost R500,000—her entire retirement savings—after investing in what she believed was a legitimate diamond trading opportunity. “They promised 20% returns in three months. It sounded too good to be true, but the testimonials seemed real,” she testified.
The co-accused, including business associates and family members, are out on bail ranging from R50,000 to R200,000, with conditions prohibiting contact with witnesses. The case has been centralised at Bronkhorstspruit for efficiency, as many victims reside in Gauteng’s rural areas where the scam was heavily marketed through community events and churches. Prosecutors have indicated they may seek additional charges under the Financial Intelligence Centre Act (FICA) for failing to report suspicious transactions.
The Ponzi Scheme: How It Unravelled
The Liebenbergs’ operation began around 2019, capitalising on South Africa’s diamond heritage and the allure of quick wealth in a struggling economy. Through Forever Diamonds and Gold, they advertised “diamond investment parcels” via glossy brochures, online seminars, and affiliate marketers who earned commissions for referrals. Investors were told their money would buy rough diamonds from mines, polished and sold at profit. In reality, funds were diverted to personal accounts, luxury purchases, and payouts to early investors to maintain the scheme’s facade.
By 2023, complaints flooded the Financial Sector Conduct Authority (FSCA), which declared the operation an unauthorised financial service in October 2023. The Hawks raided the Liebenbergs’ Sandton offices in November 2023, seizing computers, documents, and luxury items worth R10 million. Forensic analysis revealed over 5,000 victims, with losses exceeding R150 million. International investors from the UK, US, and Australia were also affected, prompting cooperation with Interpol for asset tracing.
Desiree Liebenberg’s role was pivotal; as director of ZencoCare and other entities, she allegedly handled the laundering, transferring funds to offshore trusts. Court papers describe her as the “financial brain” behind the scam, using her accounting background to falsify records. Louis, the public face, charmed investors at events, often flaunting diamonds and success stories that were fabricated.
NPA’s Asset Forfeiture Successes and Broader Impact
The forfeiture of the R4 million is a win for the NPA’s Asset Forfeiture Unit (AFU), which has ramped up efforts against economic crimes since the State Capture era. “The NPA welcomes this ruling, which reinforces that criminal enterprises will not be allowed to profit from their unlawful schemes. The Asset Forfeiture Unit remains committed to stripping offenders of the benefits of crime and safeguarding the public from fraudulent conduct,” Mahanjana said. CARA, established under POCA in 1998, has recovered over R20 billion since inception, funding initiatives like victim compensation and anti-crime tech for SAPS.
This case is part of a wider crackdown on Ponzi schemes in South Africa, where over R10 billion has been lost to similar frauds in the past decade, per FSCA estimates. Notable precedents include the 2022 forfeiture of R50 million from the Mirror Trading International Bitcoin scam and the ongoing probe into the BHI Trust scheme that defrauded 200,000 investors of R4.5 billion. The Liebenbergs’ trial could set new legal benchmarks for prosecuting complex financial crimes, with experts like forensic accountant Nadia Kriel noting the importance of digital evidence in tracing funds.
Victim Impact and Calls for Reform
Victims have welcomed the forfeiture but demand full restitution. A class action lawsuit, filed in June 2025 by law firm De Beer Attorneys on behalf of 1,200 investors, seeks R100 million in damages from the Liebenbergs and their companies. “This is a start, but it’s not enough. Many lost everything,” said lead plaintiff Maria van der Merwe, a Johannesburg teacher who invested R300,000. Support groups like the Ponzi Scheme Victims Network have emerged, offering counselling and legal aid.
The scam has prompted regulatory reforms. The FSCA’s 2025 Financial Sector Regulation Act amendments require stricter vetting for investment promoters and mandatory disclosure of risks. Banks like Standard Bank have enhanced monitoring for suspicious transactions, flagging patterns typical of Ponzi payouts.
Liebenbergs’ Legal Battle and Future Proceedings
The Liebenbergs and co-accused will appear on 25 November 2025 for pre-trial proceedings, with the main trial expected in early 2026. Prosecutors have a strong case, backed by bank records, investor testimonies, and forensic audits. Defence attorneys argue entrapment and question evidence chain, but analysts predict convictions given the scheme’s scale.
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