Hawks nab eight in high-profile diamond fraud case

Louis Liebenberg, his wife and six others were arrested after a diamond scam was uncovered by the Hawks. File

Louis Liebenberg, his wife and six others were arrested after a diamond scam was uncovered by the Hawks. File

Published 14h ago

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Diamond dealer Louis Liebenberg, affectionately known as “Cara king”, his wife Dezzi, and six other suspects were arrested in Gauteng and North West on charges of fraud, money laundering, theft and racketeering over a R4 billion diamond investment scam.

Liebenberg, who has been under Hawks suspicion for the past four or five years, is known to have contributed to the funding of former President Jacob Zuma's private prosecution case against state prosecutor Billy Downer and journalist Karyn Maughan.

According to the police, a multi-disciplinary operation led by Northern Cape Hawks’ Serious Organised Crime Investigation unit on Tuesday night resulted in the arrest of eight suspects alleged to have been involved in the scam.

The victims were swindled about R4 billion over the last five years.

According to reports, Liebenberg and Dezzi are accused of being the scam's masterminds.

Hawks spokesperson Colonel Philani Nkwalase stated that the operation resumed on Tuesday night, resulting in the rounding up of suspects in Gauteng and North West.

“The suspects include a couple wherein the husband is alleged to be the mastermind behind the scam along with his wife. Diamond investors have been scammed of more than R4 billion since 2019,” said Nkwalase.

The Hawks did not rule out the possibility of more arrests.

“More arrests are imminent, and the suspects are expected to appear in Bronkhorstspruit Magistrate’s Court on Thursday, on charges which include but are not limited to fraud, money laundering, theft, and racketeering,” said Nkwalase.

In a separate incident, Police Minister Senzo Mchunu commended the Gauteng Provincial Commissioner, South African Police Service, Johannesburg Metropolitan Police Department, and private security teams for their swift and coordinated response that led to the arrests of seven suspects following the robbery at a jewellery shop in Clearwater Mall, Roodepoort, on Tuesday.

Mchunu stated that this operation, which also resulted in the recovery of four firearms, reflects the exceptional collaboration between the police and private security companies in combating crime.

”The swift action of all law enforcement agencies has once again shown our commitment to safeguarding our communities. This incident demonstrates that we are on the right path, as evidenced by the quick turnaround time in apprehending the suspects. The determination and bravery displayed by the officers, even in the face of armed resistance, is highly commendable,” said Mchunu.

He said the recovery of the stolen jewellery, along with the arrests made, underscores their resolve to strengthen the implementation of measures aimed at reducing serious crimes.

“We remain dedicated to reinforcing these efforts and ensuring that our communities feel safer and protected... We extend our best wishes to the two injured police officers, and we commend their courage and sacrifice. Our thoughts are with them as they recover, and we wish them a speedy return to full health,” Mchunu said.