CFTC scores Entry of Default against MTI’s Johannes Steynberg
At the request of the CFTC, an Entry of Default has been recorded against Mirror Trading International CEO Johannes Steynberg.
Following service by publication on Steynberg, he had until November 15th to file an answer.
Steynberg (right) failed to do so, prompting the regulator to file for an Entry of Default on November 17th.
The court clerk recorded an Entry of Default against Steynberg on November 18th.
The Entry of Default allows the CFTC to file for default judgment at a later date.
Steynberg is currently being held in a prison in Brazil, following his arrest on an international warrant.
Steynberg’s status hasn’t been confirmed for the better part of a year, but he is believed to be in the midst of extradition proceedings to South Africa.
The CFTC alleges MTI was a $1.7 billion dollar Ponzi scheme. Despite this and the culprits behind MTI being known to them and living openly in South Africa, South African authorities have made no arrests.
Ongoing inaction against Clynton and Cheri Marks (right), suggests if Steynberg is extradited to South Africa nothing much will happen.
Pending further clarification from the CFTC, it’s unclear how their case will impact liquidation proceedings in South Africa.
Under the farcical pretense of MTI being a legitimate enterprise, civil liquidation proceedings commenced in lieu of criminal charges.
BehindMLM maintains that to date, MTI liquidation proceedings have been a waste of time.
Update 22nd January 2023 – Following on from Steynberg’s Entry of Default, on January 19th the CFTC requested an Entry of Default be recorded against Mirror Trading International itself.
The court clerk recorded the requested Entry of Default on January 20th.
I really hope that the true loosers will get their money back, I’ve lost everything due to mti and are struggling to take care of myself and my family.
If Steynberg ever gets back to South Africa his immediate headaches will be his divorce and being able to afford to live in a gated community.
Bail is only denied to violent criminals and those that cannot pay.
He could draw the court hearings out for decades (like Tigon, Leisurenet, etc), and then get a fine or a laughably short prison sentence where he qualifies almost immediately to having 50% of the length of it discounted.
Meanwhile in the US…
Meneer Wolmarans
You were warned repeatedly that MTI was a scam.
Even by the otherwise hopeless FCSA who seem to do their best at regulating when they don’t bother coming in to work.
In terms of the Insolvency Act and the Companies Act, SARS gets the first bite of whatever is recovered. The liquidators of course need to be paid, etc. There will be nothing left.
Your only recourse is a civil action. Good luck
There really no excuse for having not at least withdrawn from MTI long before it collapsed.
There were numerous warnings and anyway, the slightest due diligence would have shown that it could not possibly be anything but a business with no hope of being sustainable.
It must never be thought that Steynberg was in this alone. There was a company with named Directors who all share responsibility for misleading investors.
Some of the Directors were heavily involved in promoting the scheme. Where is the punishment for these people? How many of these people walked away as nett winners?
Reinvestment is the undoing of the majority of MLM investors.
Early investors and top recruiters heavily encourage reinvestment while they quietly withdraw the majority of invested funds (what’s left after the admin cut).
You can see this exact scenario now playing out with NovaTech FX. Bunch of clowns on FaceBook and YT who know fuck all about securities fraud leading sheep off a cliff.
As it is with NovaTech FX it was with MTI – and every MLM Ponzi before it.
Absolutely nothing. South African authorities have and continue to let them walk.
Article updated to note secured Entry of Default against Mirror Trading International.