Authorities in South Africa have arrested nine suspects involved in a major diamond investment scam, with over 200 million euros reportedly stolen since 2019. At the center of the operation is diamond dealer Louis Liebenberg, who used social media to lure investors with false promises of high returns.
Liebenberg and his wife were apprehended by police on Tuesday, October 22, while dining in a Johannesburg suburb. They are accused of being the masterminds behind the scam, which the Hawks, South Africa’s police unit for organized crime, had been investigating for five years. Liebenberg allegedly promoted rough diamond investments online, attracting numerous investors, none of whom saw the promised returns.
Following multiple complaints, Liebenberg’s company was liquidated in April. It’s alleged that he used the stolen funds to cover legal costs for former South African president Jacob Zuma, who is embroiled in numerous corruption scandals, and to fund his own political campaign within Zuma’s party.
The nine individuals arrested in connection with the scam are set to stand trial today, October 24, facing charges of fraud, money laundering, theft, and extortion.
