‘Sick’ diamond scam accused Louis Liebenberg will be spending Christmas behind bars

Louis Liebenberg appears at Bronkhorstspruit Magistrate’s Court on October 24, 2024 in Bronkhorstspruit, South Africa. The suspects face charges of fraud, money laundering, theft and racketeering involving a R4 billion they allegedly swindled out of victims. (Photo: Gallo Images / Beeld / Deaan Vivier)

By Vincent Cruywagen

28 Nov 2024

Alleged diamond scammer Louis Liebenberg abandoned his bail application just as the State was about to give reasons why he should not be granted bail.

On Monday, Liebenberg’s evidence in chief in his bail bid lasted four hours in the Bronkhorstspruit Magistrates’ Court. However, on Thursday his appearance lasted just 11 minutes.

Standing in the dock sipping from a bottle of water, he listened as the State informed the court that it was ready to begin cross-examination.

A tired-looking Liebenberg told the court: “I have been sick in prison the past few days and still feel ill. I would like to abandon my bail application at this stage and will revisit this with the requisition to court.”

This means Liebenberg and his wife, Desiree, will spend Christmas behind bars until their next appearance in February 2025, while their co-accused are all out on bail.

The couple was arrested on 22 October 2024 at the Benoni Country Club. A further seven, allegedly part of a diamond syndicate, were also arrested. Liebenberg’s company, Tariomix, which traded as Forever Diamonds and Gold, has been under investigation by the Hawks since 2019.

The other seven are Liebenberg’s former lawyer, Walter Niedinger (55); Tariomix co-director Magdalena Kleynhans (54); Liebenberg’s assistant, Nicolize van Heerden (58); his former office manager, Helena Schulenburg (59); Johannes Badenhorst (41) and Christell Badenhorst (42), former directors at companies run by Liebenberg; and former employee Adriaan Dewald Strydom (35).

On Monday, Liebenberg unequivocally denied that he took R4.5-billion from investors, as claimed by the State. It is also his contention that the State isn’t sure of its own case and whether all these charges will stand in court.

Read more: “It’s the Louis Liebenberg ‘reality’ show as alleged diamond scammer mounts his own defence”

The State was ready to proceed and its arguments would have revolved on key critical points as to why he should not be released on bail, including that there is a strong case against the accused, he is a flight risk and will evade his trial, doesn’t have a fixed address, will intimidate or destroy evidence, and failed to produce evidence which satisfied the court that exceptional circumstances exist which, in the interest of justice, permit the couple’s release.

Read more: “Desiree Liebenberg denied bail in ‘diamond scam’ case, will spend Christmas behind bars”

However, the most critical point used by prosecutor Hana Conradie to deny Desiree bail was that she was a flight risk and had access to R200-million.

Louis Liebenberg diamond scammer Louis Liebenberg and his eight co-accused face charges of fraud, money laundering, theft and racketeering involving R4-billion. (Photo: Deaan Vivier / Gallo Images)

Alleged ringleader

At the centre of the allegations against him is that he operated a R4-billion diamond Ponzi scheme.

Liebenberg, referred to by the State as the ringleader of the scheme, and Desiree were arrested at a Gauteng restaurant on the night of 22 October 2024, following a five-year probe.

The nine accused face 42 counts of fraud (alternatively theft), five counts of racketeering, six counts of money laundering and various statutory offences, including contraventions of the Companies Act. The charges stem from allegations that Tariomix duped investors out of R4-billion.

The State has, during bail proceedings, alleged that the syndicate was involved in dealing with unpolished diamonds and fraud. Liebenberg allegedly advertised unpolished diamonds on social media and invited potential investors to invest in his diamond-dealing business, with the promise of a lucrative return, which never materialised.

The Hawks probe into the alleged Ponzi scheme led by Colonel Daniel Bruwer revealed that Liebenberg registered 15 companies where his ex-girlfriend Kleynhans and the rest of the accused, who are either family members or have close relations, were directors.

Louis Liebenberg in the Bronkhorstspruit Magistrates’ Court on 24 October 2024. (Photo: Gallo Images / Beeld / Deaan Vivier)

The investigation further revealed that in 2020 Liebenberg and Kleynhans registered Tariomix, where they were both directors. Another company, Forever Zircon, was registered in 2021. Both companies were purportedly involved in buying and selling diamonds.

The State contends:“The accused utilised the proceeds of the diamond investment scheme to purchase movable and immovable assets, including two mines, and various motor vehicles – a Ford bakkie, BMW 230i Sport [and] Toyota Agya – Krugerrands and silver coins and pay for Liebenberg’s lavish wedding and honeymoon in Greece. Various immovable properties, including an office block, were purchased.”

More damning evidence

Liebenberg’s decision to withdraw his bail application meant the State was unable to proceed with presenting incriminating evidence to support its case.

The evidence includes black and leather bags containing R5.1-million in cash, which the accused allegedly had in his possession. His wife’s evidence in a leaked interim report on the insolvent Tariomix estate, prepared by liquidators and obtained by Daily Maverick, confirms several payments.

She has kept a journal of the payments and transfers made from these bags, which, she revealed in her testimony, included R1-million to his former lawyer and co-accused, Niedinger, R30,000 to a police captain, and R100,000 to the daughter of a former ANC politician.

She also testified that Louis always carried R20,000 in his purse and paid for everything in cash.

Proceedings resume on 4 February 2025. DM

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Alleged ringleader

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