The Gauteng High Court Pretoria is to hear an urgent application on Tuesday by an investor into the KleuterZone investment scheme - founded by former singer and TV presenter Anthonie Bougas - for its liquidation.
This follows allegations that he failed to pay dividends to investors this month. KleuterZone is a nursery franchise that has promised its investors annual returns of up to 62.4%.
An investor, Anita du Plessis, who has invested a million rand in the franchise, said in court papers that she feared the company is operating in a manner that may involve fraudulent activities, characterising a Ponzi scheme.
She called on the court’s urgent intervention as she claimed the scheme has caused significant financial harm to investors. It is understood that more investors may join the application.
While it is not clear at this stage whether Bougas will defend the urgent application, he said in a statement issued last month that KleuterZone remains steadfast in its mission and will not allow a smear campaign to derail its commitment to quality education and investment integrity.
He gave the assurance that KleuterZone is a trusted leader in early childhood education, operating a growing network of schools nationwide.
Du Plessis, however, in an affidavit issued as part of her application, voiced her concerns over the operations of the company. She said there is overwhelming evidence that it is in financial distress and that it has engaged in fraudulent activities.
“Despite the respondent’s representations to investors of high returns with little risk, it has misrepresented its investment opportunities and engaged in financial practices resembling those of a Ponzi scheme.”
Du Plessis explained that funds from new investors were used to pay returns to earlier investors, rather than being used for legitimate business activities. She said the company recruited investors, assuring them that their capital contributions would generate steady high monthly returns.
She initially received regular payments, but these amounts were later reduced to an unexplained amount. When asked about this, the company’s explanation was "dividend tax".
According to Du Plessis, several investors, including herself, have reported discrepancies in their share certificates, with some of these bearing invalid company registration numbers. She said this suggested possible fraudulent activity regarding the respondent’s business status. The company operates multiple subsidiaries, yet its financial dealings remain difficult to trace, she stated.
According to Du Plessis, the company is also a shareholder in KZ Select Group 1 Ltd - a company which has come under scrutiny regarding its financial dealings and concerns that it may be operating a Ponzi scheme.
She said despite numerous requests from investors, the company failed to disclose its audited financial statements or any credible documentation regarding the use of the invested funds. Nor did it clarify the legitimacy of its investment model, which was initially marketed as a high-yield investment opportunity in the early childhood development sector.
Investors are at risk of losing their money as the company’s operations are unsustainable and the company has failed to honour its payment obligations.
Du Plessis added that to make matters worse, it had come to her attention that Bougas has fled the country amidst the unfolding scandal. She called on the court to urgently intervene as investors are at a serious risk of losing everything.
Well-known private investigator, Mike Bolhuis, has meanwhile also announced that his team is investigating Bougas and the alleged Ponzi scheme. He said this is after he had been inundated with complaints from the public in this regard.