African Drug Importer Accused Of $1.2B Ponzi Scheme

Law360, New York (June 11, 2009, 12:00 AM EDT) -- Authorities in South Africa are investigating allegations that a pharmaceutical ingredient import business was a Ponzi scheme that defrauded investors around the world of up to $1.2 billion.

South Africa's The Mercury newspaper reported that investigators believe Barry Tannenbaum, a South African businessman living in Australia, promised investors up to 200 percent returns linked to pharmaceutical imports, but was actually paying early investors with funds from new clients.

A private security firm hired by investors to investigate the scheme has estimated that 200 investors in the...
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