Another Ponzi Scheme Presentation By Fraudster Dr DS Grieve of South Africa

7/29/2019 Another Ponzi Scheme Presentation By Fraudster Dr DS Grieve of South Africa

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Confidential

Proposal by

Dr D S Grieve

On

DR DS Grieve

Bridging Solutions (Pty) Ltd

Shareholding

For attention: __________________________

Dr D S Grieve

2-01-2008


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Table of contents:

1. Executive summary page 3

2. Introduction page 4

3. Typical financial examples page 7

4. Some of the standard procedures & a SWOT analysis page 10

5. Marketing & current clientele page 11

5.1 marketing to current clientele page 115.2 new target market page 115.3 Agents page 115.4 Continued support page 115.5 General page 11


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1. Executive Summary

Thank you for allowing me the opportunity to introduce you to my business. I have

taken this presentation and divided it into a few sections allowing me to introducemyself, the plan, the projections, the returns, the concepts and the basic structureof the business.

In concept my plan is to lend money to clients introduced to me by attorneys. Allthese clients should have a property transaction in progress. The principle allowsfor short term funding as a bridging solution for people wanting their proceedssooner than their deals are registered at the deeds office.

What makes this very secure is that at no time do I lend money without aguarantee being held from a bank, linked to an attorneys undertaking. As I will be

discussing in detail later.

There are three types of contracts/transactions I currently facilitate

1. Transfer duty bridging:This is where I charge the client a fee of 4,5% on the capital advanced forthe contract and a further fee of R 1,60 per thousand rand advanced perday, after 30 days.

2. Transaction Bridging: ( Sale of Proceeds or sale of second bond funds )This type of deal is where someone wants his or her property profits beforethe deal has been registered at the deeds office. For this type of bridging afee of 4,5% is levied on the capital advanced. If the date of registrationtakes longer than 30 days a penalty fee of R 1,60 per day per thousandrand is levied.

3. Developers bridging: ( equity assistance for developers )This type of deal is used to support developers where they are short onequity for a transaction, but have sufficient security to support thetransaction. Rates vary between 3,5% to 5% per month. Depending on thetransaction, the equity available will determine the exact rate.

I would not limit this business by only looking at these three types of contracts;however that is what has been working very well for the last three years. The neteffect is a potential return of between 24% per annum to all informed shareholderswho invest in this business.

The initial intention is to raise 20 million rand from shareholders/ investors to giveeach shareholder a share in Dr DS Grieve Bridging Solutions (Pty) Ltd as to legallybring their money into the business in a share purchase or shareholders loan andthen pay their returns out to them at a fixed rate of 2% per month as interest, and

have it taxable in their hands.


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Should a shareholder/Investor at any stage wish to withdraw his investment hewould need to give a reasonable two to three month notice to withdraw his cashout of the business.

Basically this opportunity gives the client the ideal chance to earn a good secure

return on his money without having any sleepless nights.More details follow


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2. Introduction

A little about myself:

Born: 28 August 1970Matriculated: 1989Studied the following:MBChB (General Practioner) Worked as such for 5 years while I studied furtherthrough Manchester Business School and did an AMP that included the followingsubjects:

Financial accounting

Management accounting

Economics

Business management

Human resources

Arrays of other subjects in the business field were also studied. Further to that I amenrolled in an MBA programme at Pretoria University.

I left medicine and purchased Cynthias Restaurant (Maroelana) in 2003, which Ihave managed very successfully for the past five years, and have now sold thispast year.

I am also a shareholder and a member of the board of trustees of the Wilderness

Protea Hotel.

I also have been running a small bridging business with a debtors book of varyingbetween R 4 -7million for the last three years, and this is the promising business Iam referring to.

I have already raised almost R 6 million rand for this business and some of thatmoney is already working for my investors and me. Of this 3 million rand is myown funds and contribution to the business.

I am looking at raising another R 20 million to invest in this project structure in the

style that will explain itself as you continue to peruse this document.

A little more about the business:

I have structured the business in a Pty (ltd) company. The current structuredcompany is also registered with the NCR(National Credit regulator). The plan is togive each shareholder a share. Each investors share will entitle him to a fixed 2%return on his investment loan to the company as a shareholder. Each investor orpreference share holder will have the right to peruse the management statementsand all financial records at all reasonable times. The full intentions from the outsetwill be, to have the books audited by an external auditing firm once a year and to

have non-audited management statements available on a monthly basis.


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The shareholder will be able to look forward to having management statementssent to him for a calendar month no later than the 15th of the following month andpayments will be affected on the 15

thof every month for the returns accrued in the

previous month.

I have already built up a fairly strong clientele and will easily expand this by theextensive marketing I am planning to do.

Currently I have raised the following funds:

1. Myself R 3 000 000-002. Investor 1 & 2 R 3 000 000-00

I am looking to find at least another R 20 000 000-00 or more to be used asalready explained. I would also like to achieve this with as few investors as

possible.

I will have the books audited by PKF Auditorson an annual basis. My in-houseauditor and I will handle all contracts and management statements. For referencepurposes the auditors address and details are as follows:

PKF Auditors (SA)Registered Charted AccountantsClub aveWaterkloof

References to my business:

1. Dawid Fourie tell: 08289247632. Jaapie Combrink tell: 0833571919


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3. Typical financial examples

A Typical monthly income statement would look something as follows.

Income generated from a capital base of 10 Million based on an average of 4% permonth.

Income from profits, fees & Interest R 400 000-00Income from contracts R 10 000-00

Gross profit R 410 000-00

Direct overheadsAudit & book keeping fees R 5 000-00

Telephone & Fax R 2 000-00Bank fees & interest R 1 000-00Stationary & other R 2 000-00Provision for bad debts R 10 000-00

Indirect overheads R 20 000-00

Gross profit R 380 000-00

Investors payments as interest at 2% R 200 000-00

Each shareholder is then paid his return based onhis investment account. If he has R 2 Million in thesystem he would receive 2% giving him a monthlyreturn of R 40 000-00 per month!!!!Not too bad!

Profit retained after distribution R 180 000-00To be applied to indirect overheads:

Marketing

Entertaining clients

Petrol Cell phone

Support staff

Office rental, electricity, etc.

Salaries

Furniture

Computers

Fax machines, copiers

Other, including my drawings

Basically I will perform all marketing, entertainment, rentals and other overheadson my account. For this I take half the distributable income to cover the necessaryexpenses to perform the business and the remainder I draw out and leave the


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company with a zero profit balance each year so that there is no taxable retainedincome in the business. This does leave all distributions taxable in eachindividuals hands.

On the model currently presented we should achieve an average return of 24% per

annum as a return for each investor, this is not a bad return considering the currentmoney market rates are less than 8% per annum. This is obviously a before taxprofit.

What also makes this an attractive investment is that all loans are based on bankguarantees and/or backed by attorneys undertakings. If not, sessions and bondsare put in place over fixed property with sufficient equity in place. So the capitalwill be and is always well protected.

Liabilities.It would be of good service to the company if an overdraft facility can be put in

place to ensure that the entire capital amount can be used to build a debtors bookof R 20million rand, than a small overdraft can ensure liquidity with the maximumamount of funds out to earn interest.

This would ensure that contracts can roll over and that no clients have to wait formoney to return before they borrow from us.

This would in short ensure that every cent from each investor could work to themaximum for him or her self.

A typical & idealistic balance sheet should read as follows (based on only 10million invested):

AssetsDebtors book R 10 000 000-00Current account (investors returns due) R 200 000-00Total Assets R 10 200 000-00

LiabilitiesMembers loan accounts R 10 000 000-00Members returns due R 200 000-00

Total Liabilities R 10 200 000-00

The main idea will be to keep the books as uncomplicated as possible.The overdraft facility will be a potential liability however that will have a positive netresult for the following reasons:

Allow for faster money movement.

Allow for the roll over of contracts and then each investor would benefit froma slightly higher return.

Would allow for every cent to be borrowed out and thus allow us to have alower reserve level for current clientele.

Would allow for higher earnings percentage


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A cash flow for a 12 month period is attached as annexure B this represents theincome and expenses anticipated for the next twelve months. However this is stillsubject to change as far as the tax component is concerned, that being if we needto declare a dividend as apposed to paying out a variable interest to shareholders,this is still subject to auditors investigation and will be detailed as soon as is

finalised.


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4. Some of the standard procedures & a SWOT analysis

Monthly management statements would be generated and e-mailed to all

investors Payments to investors/members would be made on the 15

th of every month

All contracts, undertakings would be available for all investors to peruse

Any issue should be resolved through the companys auditors

Any shareholder wishing to withdraw will have to notify us of his or herintention of such in writing and also resign as a shareholder of the company

Such withdrawal could take up to 3 months to effect

Occasionally a free agent may be used who will be given a commission forhis duties however this will be seen as an out of contract arrangement andhis commission would be in addition to our normal fees charged. Therefore

it would not affect our profitability.

This list is also something that will be added to, on a frequent basis so as to keepall investors and financial institutions happy.

Strengths: Weaknesses:

Quick & speedy results toclients

Super fast turn around timeson applications

Easy secure way to generate

a cash flow Can be managed with very

little office space and fixedmonthly overheads

This investment is a cash flowinvestment

Other players in the market withlower rates

Potential changes to the bankingact that may affect our way ofdoing business

Not enough capital for thedemand, even though there areother players in the market place

This investment is for cash flowand not for capital growth

Opportunities: Threats:

Many attorneys looking forbridging solutions for theirclients

The whole country is ouroyster, there is a massivedemand for large amounts ofmoney, for short term bridging

Once a large debtors bookhas been built up, a bank willhelp with gearing to financeanother 50-60% of the bookto increase the returnsdramatically

Interest rates changing couldreduce the demand, howeverthere are other financingopportunities available

Other players as competitioncould place pressure on thedemand.


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5. Marketing and Current Clientele

5.1 Marketing to current clientele

I would strongly focus on my current client on making them very happy withmy service levels and to ensure that they talk to their friends so that word ofmouth does the rest. My current customer list is small and can be easilyextended given the extra capital.

I currently service the following customers frequently with substantialdebtors books in each of their practices:

Bert Smith Attorneys

Kondred Kunssman Attorneys

Salti Verziano

Vezi De Beer

Peet Viljoen

Buys & Partners

Roux attorneys

And a few others on a more ad hoc basis

5.2 New target market

I have my eyes set on various practices for the new capital generated, andthese are just a few of the first potential clients I will approach. Then any

investor with any relation or connection to an attorneys firm is welcome togive me a lead and I will soon follow it up and show them why we havegrown so fast.

5.3 Agents

I have occasionally made use of agents too. This is where a third party isinvolved in brining in a contract, I normally charge an extra fee which ispayable to the agent and this has no impact on our normal profit.

5.4 Continued support

All these clients like to be treated and made to feel special. So the wholewine and dine thing becomes an important thing to do. So I need to treatthem every now and again all these functions are financed out of my halfof the profits and has no impact on the profitability to the investors

5.5 General

The list of attorneys and clients to provide with bridging solutions is endlessand carries on and on. It is not just my intention to stay in Pretoria lookingfor clients. I have a few leads into Johannesburg and will be focusing on thewhole of Gauteng in this coming year and then the year after that perhapsthe whole of South Africa.


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One of the fastest ways we have grown was by referral and word of mouth,and on average we can grow by 2 million per month with almost no effort.So with some effort I would certainly get the desired result which would beto grow a debtors book of in excess of R 20 000 000-00, in fact my current

debtors book is already over R 5 million and I am already having to showclients away, rather terrible I would say!!!

Interestingly I have recently had good discussions with another bridginghouse in Johannesburg who only do large deals. My intention is also tostructure a joint venture with them on larger deals so that my risk profile iskept in acceptable limits per transactions.

All transaction above 500 thousand rand could be shared with them to splitthe exposure on any single deal; however this would only realise in 2008.

I trust that this will be interesting reading for all.

Thanks for taking the time to read through this summary of what I do.

My contact details are as follows:

Dr DS Grieve (David)E-mail:[email protected]: +2782 927 9734Office: +2712 643 0498Fax: +2786 689 9874PO Box 12095Clubview00145 Larch NoekZwartkops extension 4Centurion0157
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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Another Ponzi Scheme Presentation By Fraudster Dr DS Grieve of South Africa