A high-powered Dutch investigative team is heading for Cape Town to question the two alleged masterminds of an international investment scam that runs into hundreds of millions of rands.
The investigators want to talk to Milnerton property developer Sean Stockdale and his former associate, Graig Garrett of Somerset West, who they believe can shed light on a massive wine quota scam which left more than 3 000 American professionals, mostly medical doctors, with worthless "ghost" investment portfolios.
Forensic detectives estimate that up to R1,1-billion passed through the accounts of a company called Ocean International between 1996 and 2003. Garrett and Stockdale are both believed to have been closely linked to this company.
Jeichien Graaff, a spokesperson for the prosecution team's office based in Rotterdam, confirmed that Stockdale and Garrett were the accused in a major "boiler room fraud" case involving investments in non-existent wine sold to American people.
Graaff was tight-lipped about the plans of the prosecutors and the strategy of detectives probing the alleged scam, but she confirmed in an email to The Independent on Saturday this week that an investigative team would catch up with the two men in Cape Town.
Explaining how 'boiler room' fraud worked, Graaff said: "Clients or victims are constantly phoned and put under huge pressure to buy, buy, buy and not waste opportunities.
"They (the investors) initially do gain a little on their investment, although it's only on paper. They then invest more. Our investigators calculate that in the region of R1,1-billion passed through the accounts of Oceans International between 1996 and 2003."
She said Stockdale, who was the director of Ocean International marketing, the alleged front company, and Garrett, his sidekick, are believed to hold dual South African-Dutch nationality. Graaff said the men were to have appeared on charges of fraud and forgery in Rotterdam several months ago, but they had failed to show up.
Graaff could not verify media reports abroad that an extradition process was already under way, but confirmed that "we aim to bring them before a court. I can, however, not comment on what steps are taken to get them there".
The duo's company was based in Rotterdam but had a branch at Milnerton Lagoon, where Stockdale still has an office.
After leaving Holland, Stockdale attempted to develop the plush Island View complex at the Milnerton lagoon mouth, but the project was taken over by another company after his alleged involvement in the scam became known.
Stockdale and Garrett started feeling the heat in 2003 when their alleged victims challenged their activities in the Cayman Islands, Maryland in the United States, and in Scotland and the Channel Islands with success.