Despite being under investigation by the Hawks, sequestration, a hefty R143-million FSCA fine, a 20-year debarment, and even losing a leg, Cobus Geldenhuis – the former director of Classic Financial Services – is reportedly still peddling investment opportunities.
In the latest episode of The Devi Show, which aired on e.tv on 23 February, veteran journalist Devi Sankaree Govender allegedly caught Geldenhuis in the act for the third time.
Govender first exposed him and his Classic Financial Services scheme on 20 August 2023, in an episode titled “Classic Financial Services One”. The investigation detailed how Geldenhuis lured clients with promises of high returns from his hedge fund, supposedly investing in companies such as Tesla, Apple, and Google.
The saga continued with a second exposé on 28 January 2024, confirming that Geldenhuis was still operating.
The FSCA confirmed this in a media statement released in March last year, stating that despite Geldenhuis’s debarment, he was providing financial services to the public under the name Pecunia Systems (Pty) Ltd (Pecunia), with FSP number 11332.
Pecunia Systems was registered in the name of his son, Dewald, but the licence has since lapsed.
Read: It’s ‘business as usual’ for debarred director of Classic Financial Services
In the latest episode of The Devi Show, Govender revealed that Geldenhuis is allegedly still defrauding investors – this time under the alias Pieter Pretorius – while operating through Gorilla Unit Special Ops, a front company reportedly owned by one of his employees.
Now, Geldenhuis appears in a wheelchair.
Security camera footage dated 10 October 2024, which circulated in creditors’ social media groups, shows him riding a motorcycle when a car strikes him. Reports indicate that his injuries led to the amputation of his left leg below the knee.
Confronting Geldenhuis for the third time, Govender asks, “What is wrong with you? Why are you doing this again?” to which he responds, “I’m stupid.”
However, two investors who lost substantial sums to Geldenhuis, Rika Cornelius and Tommy Butler, believe greed – not foolishness – is his true motivation.
Butler told Moonstone that he has come to terms with his loss but still wants to see justice served.
“I’m not going to get my money back. It was an expensive lesson to learn, but just let the guy sit [in prison] – why aren’t the Hawks taking action?” he asks.
Everything is just ‘fine’
The scheme, which began in 2011, started unravelling in August 2022 when Nico Retief filed a complaint with the FSCA, alleging that Geldenhuis was unlawfully soliciting public investments.
An FSCA investigation found that, despite being debarred in 2009 for dishonesty, Geldenhuis continued operating through Classic Financial Services, running a Ponzi scheme and misusing clients’ funds for personal gain.
According to the FSCA report released on 22 May 2023, Classic had collected over R617m from about 1 120 investors between January 2019 and May 2023, with R129.9m still unaccounted for.
Read: Classic Financial Services director and wife’s R66m gambling spree
During the investigation, Geldenhuis admitted that Classic’s sole purpose was to steal money and that no client funds had ever been invested.
On 30 May 2023, the High Court in Pretoria issued a final liquidation order against Classic. Since then, the joint liquidators – WJ Venter, JA Fisher, and SJ McKenzie – have successfully applied for the sequestration of Geldenhuis’s personal estate, as well as that of his former wife, Jackie, and his son, Dewald.
Read: Forensic audit traces Classic Financial Services’ missing millions
Following the investigation, in December 2023, the FSCA imposed a R143m penalty on Geldenhuis and debarred him for 20 years for contravening, among other provisions, section 7 of the Financial Advisory and Intermediary Services Act.
Despite this, Cornelius and Butler claim that Geldenhuis has been telling people the FSCA dropped the fine against him.
Gerhard van Deventer, the FSCA’s head of enforcement, told Moonstone that Geldenhuis has neither paid the penalty nor made any payment arrangement with the Authority.
“The Authority will consider what steps to take to recover the penalty,” he said.
Van Deventer added that Geldenhuis had informed the FSCA last year of his intention to take the decision on reconsideration to the Financial Sector Tribunal (FST).
“However, Mr Geldenhuis has not prosecuted his reconsideration.”
Van Deventer said the FSCA has not received any complaints against Pretorius or Gorilla Unit Special Ops, “but we will look into it”.
Moonstone attempted to get hold of Geldenhuis using the latest available contact details, including those linked to Pieter Pretorius. However, no response had been received by the time of publication. Any feedback received will be added to the article.
Delay in the investigation
Moonstone has twice reported on investors’ frustration over the slow progress by the Hawks and the National Prosecuting Authority (NPA).
In July 2023, the NPA confirmed that a criminal case had been opened at the Kempton Park Police Station to investigate Classic Financial Services and Geldenhuis. Captain SI Mothiba was appointed as the investigating officer.
In July 2024, Colonel Katlego Mogale, spokesperson for the Directorate for Priority Crime Investigation (Hawks), stated that the case had been handed to the NPA for a decision, but further instructions were still pending.
Read: Investors demand justice as alleged ‘Ponzi mastermind’ remains free
Read: Delay in Classic Financial Services investigation: investors demand answers
As far as Moonstone could determine, the docket remains with the SAPS.
Liquidation update
In their eighth and most recent communication, issued on 11 February, the joint liquidators confirmed that the Master of the Court had set 31 January 2025 as the final deadline for submitting claims.
“We circulated the cut-off date in our previous circular to creditors and advertised same in the Government Gazette,” the liquidators noted. They added that any claims received after 31 January 2025 “will not be submitted at the special meeting of creditors and ultimately not be included in the Liquidation and Distribution account of the insolvent estate of Classic Financial Services One (Pty) Ltd”.
The liquidators stated that they were proceeding with plans to convene the special meeting of creditors to assess all claims submitted by the deadline.
“We are continuing with the collection of debtors to collect as much funds as possible for the estate, and the liquidators will consider a first liquidation and distribution account after the claims submitted by 31 January 2025 were proved at the special meeting,” they said.
Why is he still not in jail.He lie to many investors and still continue with his habit.No matter one leg or not.
In the meantime he doesnt give a flying otter for us who must scrape our cents together each month to get things done.
He and his wife must rot in jail.
I wont even give him a fly to eat.
And we as above board advisers have to work twice as hard to prove that we are decent and honourable plus pages snd pages of compliance to show our auditors and the FSCA!!!!!
I have said this a 1000 times, Debarment is worth ziltch. They simply use anoter front person or company. The FSCA is living in lala land. It is the same when they cath out these fraudelent funeral schemes. It just goes on in another guise under another person. It is time for harsher jail sentences.
Interesting case study on Debarment and the General Code of Conduct