Neil de Waal, a prominent promoter of the multi-level marketing scheme GS Partners (GSP), was granted bail of R15,000 by the Benoni Magistrates Court last week after facing charges of fraud. The case has drawn significant attention, highlighting the risks associated with investment schemes promising high returns.
De Waal’s court appearance stemmed from allegations made by an investor from Benoni, who claims to have lost R315,000 after depositing the sum into De Waal’s personal bank account. The investor was reportedly lured by promises of substantial and regular returns, only to see the investment vanish.
The fraud charge was filed after De Waal’s arrest warrant was issued in December last year. Despite the warrant, he was only apprehended on May 31 in Cape Town upon his return from a trip to Bali. De Waal initially appeared in the Bellville Magistrates Court in Cape Town before being transferred to Gauteng to face the charge.
The state opposed De Waal’s bail application, citing concerns that he posed a flight risk and was implicated in another fraud case in Cape Town. The prosecution argued that he was likely to commit further offences if released. However, the magistrate granted bail under the condition that De Waal reports to the police twice a week.
Following his arrest, De Waal’s Instagram account, which he used to promote various schemes for passive income through digital assets, was reportedly scrubbed of content. The complainant in the case enlisted a private investigator to track De Waal down, leading to his eventual apprehension.
De Waal was an active promoter of GSP, also known as Gold Standard Partners. This company is linked to the metaverse NFT scheme Lydian World, which claims to allow investors to purchase virtual real estate. Gold Standard Banking Corporation, another affiliated entity, is registered in Germany.
GSP has attracted scrutiny from law enforcement agencies in several countries, including Canada and multiple US states. The Financial Sector Conduct Authority (FSCA) of South Africa issued a warning in November last year, advising the public to exercise caution when dealing with GSP. The FSCA noted that GSP was not licensed to offer financial services and was promising unrealistic returns. Moneyweb reports that the FSCA is currently investigating alleged victims of GSP.
The company’s marketing strategy involved high-profile sports personalities such as former Springbok rugby star Victor Matfield and cricket legend Herschelle Gibbs. These endorsements helped GSP gain visibility and attract investors, further complicating the legal landscape surrounding its operations.
De Waal’s case underscores the broader issues within the cryptocurrency and digital asset investment spheres, where high-risk ventures often lure investors with promises of extraordinary returns. As regulatory bodies continue to grapple with these challenges, the case of Neil de Waal serves as a cautionary tale for both investors and promoters in the volatile world of digital finance.