Ponzi scheme mastermind Nsikayomuzi Goodman Goqo was sentenced to eight years in jail for defrauding thousands of people of R75 million. His conviction and sentencing serve as a stark warning against investment scams and highlight the devastating impact they have on victims. Goqo was found guilty of defrauding more than 4,000 people of over R70 million through his company, Ingede Mineral Holdings. He was sentenced on Friday, September 26, 2025 at the Pinetown Regional Court.
Following his sentencing, Goqo applied for leave to appeal the decision. Goqo was arrested in January 2012, but his trial was beset by delays for nearly 14 years, largely due to him changing lawyers or feigning illness.
Timeline of the Goodman Goqo Ponzi Scheme
- Before 2012: Goodman Goqo operated his business, Ingede Mineral Holdings, from an office in Hillcrest, South Africa. He allegedly enticed thousands of investors by promising a monthly return of 30% on their investments over a six-month period.
- January 2012: Goodman Goqo was arrested on fraud-related charges.
- October 2010: An earlier court case involving Goqo, the South African Reserve Bank, and Ingede Mineral Holdings was heard, where the court discharged a rule nisi and upheld the seizure of assets under the Banks Act. This suggests that the authorities were already investigating the scheme around this time.
- 2012 – 2019: The case against Goqo experienced numerous delays, with the matter being adjourned on multiple occasions and appearing in court more than 100 times.
- 2019: Goqo pleaded not guilty to all 16,452 charges against him, which included fraud, theft, and contraventions of the Banks Act, the Financial Protection of Funds Act, and the Financial Intelligence Centre Act.
- 2025 : Goodman Goqo was convicted and sentenced to eight years in jail for his role as the mastermind of the Ponzi scheme that defrauded thousands of people of R75 million.
Goqo’s scheme, which operated under the guise of a legitimate investment opportunity, promised investors exceptionally high returns in a short period. He leveraged a classic Ponzi model, using money from new investors to pay out the initial investors, creating the illusion of a profitable venture. This cycle continued until the number of new investors dwindled, making it impossible to sustain the payouts. The scheme ultimately collapsed, leaving thousands of people with significant financial losses.
Goqo was found guilty on multiple counts of fraud. The court heard emotional testimonies from victims, many of whom had invested their life savings, retirement funds, and inheritances. The prosecution argued for a harsh sentence, emphasizing the widespread harm caused by Goqo’s actions. The judge handed down an eight-year prison sentence, which reflects the severity of the crime and the need to deter similar offenses.
This was not Goqo’s first offense. He had a prior fraud conviction in 2007, for which he received a fine. The magistrate in his most recent case stated that the prior lenient sentence was not a deterrent.
He spent over R5 million of investors’ money on five luxury motor vehicles. Among the cars reportedly seized were a BMW X5 and an Audi TT coupe, valued at over R2 million. orensic analysis revealed Goqo spent R685,000 on high-end watches, which were all bought with investors’ funds. Some of these watches were seized during an asset recovery process. Investigators estimated the value of his designer clothing and shoes at over R750,000.
Although Goqo’s lawyer claimed a friend owned an R1.8 million house on tribal land, the state prosecutor said this was an attempt to cover up for Goqo, who was using investor money for his lifestyle. The house in Lion Park was put forward by Goqo’s former mentor, Malibongwe Matiwane, as collateral in an attempt to lessen Goqo’s sentence. However, the magistrate deemed it an insufficient gesture, and it was revealed in court that Matiwane claimed to have used investor funds to build the house.
