Extradition of alleged Ponzi kingpins not 'clear cut'

'It is a complicated legal matter and the South African authorities will have to work closely with law enforcement authorities overseas,' Werksmans director Paul Winer is quoted as saying. He represents some of the victims of the alleged Ponzi scheme Tannenbaum is said to have run. The NPA started proceedings to have Tannenbaum and Rees extradited this week. Steven Powell, head of forensics at corporate law advisers Edward Nathan Sonnenbergs, cited the long time it took to have businessman John Stratton extradited from Australia on charges relating to the murder of mining businessman Brett Kebble, to explain the complexities of the process. 'Investigators are uncovering information on Tannenbaum and Rees on a daily basis,' according to SA Revenue Service spokesperson Adrian Lackay in a report on the IoL site. Their names would be circulated to police authorities world-wide via Interpol. The pair is expected to be charged with racketeering, money laundering and fraud. Full Business Day report Full report on the IoL site

Meanwhile, the Qatar-based Barwa Real Estate Company QSC yesterday succeeded in its bid to sequestrate Rees' estate. In a statement, attorneys representing the company, Dewey and LeBoeuf, said Barwa, in its founding affidavit, alleged that Rees fraudulently, and as part of an alleged Ponzi scheme, misappropriated a sum of at least $12.7m, says a report in The Times. It was also alleged that, together with Tannenbaum, Rees was liable for a sum in excess of $30m, which Barwa had made available for financing the purchase of active pharmaceutical ingredients. The sequestration application was heard by Judge Mohamed Jajbhay in the South Gauteng High Court. This followed a freeze order obtained by Barwa against the assets of Rees on 1 September. It remains to be seen whether the order will be recognised in foreign jurisdictions, notes Legalbrief. Full report in The Times