Mirror Trading International net-winners issued summons
Mirror Trading International net-winners have been issued summons in South Africa.
The summons are part of liquidator’s efforts to claw back money paid to MTI’s top earners.
Former members of MTI have reported in online discussion groups that they received summons claiming they were net winners in the unlawful scheme and had to pay back their ill-gotten gains.
Being unfamiliar with South African law I’m not sure how long the process from here plays out. Presumably net-winners will have time to respond to the summons.
Those that pay back what they stole do so, and the rest go through court I imagine. Under South African law the summons count as debt collection proceedings.
Vermeulen reports some potential issues with some summons going out prior to court approval. Purportedly this is due to waiting any longer barring collection efforts due to time constraints (3 years).
After liquidators take their cut, monies reclaimed from MTI net-winners will be used to pay victims of the Ponzi. As of January 19th, there are 8550 MTI victim claims.
Liquidators are still in the process of evaluating the claims. As of January 26th 7268 claims had been processed.
The liquidators explained that claims can only be paid once the second liquidation and distribution account is finalised and lodged with the Master of the Court.
“If there are no objections to the account, the Master, at its discretion, confirms the account, after which dividends can be paid,” they said.
They said the soonest they could indicate how long this would take is the end of February.
I’m unclear on whether Clynton and Cheri Marks (right) have received summons.
Together Clynton and Cheri made up MTI’s two top net-winners by a large margin. They are also suspected of running Mirror Trading International alongside CEO Johann Steynberg.
Clynton Marks is believed to still be residing openly in South Africa.
Cheri Marks, who also goes by Cheri Ward, deactivated her previously publicly available FaceBook profile sometime after August 2023.
Whether this was related to ongoing MTI proceedings is unclear.
Ward is otherwise also believed to still be openly residing in South Africa, living of proceeds stolen through MTI.
Despite MTI being ruled one of South Africa’s biggest Ponzi schemes, to date South African authorities have failed to take action against Clynton and Cheri.
In related news MTI’s liquidators have been securing legal status outside of South Africa.
In December 2023 liquidators secured bankruptcy legal recognition in the UK.
The UK ruling comes after the South African liquidators received similar recognition in the US, Canada, Belgium, and Australia.
These rulings allow liquidators to pursue MTI net-winners in each of these countries. As of yet summons are believe to only have been issued to South African net-winners.