Feb 5, 2011 9:58 PM 

http://www.timeslive.co.za/business/article894332.ece/Arrest-action-in-scam-rap

Warrants of arrest have been issued by the Randburg Magistrate's Court for two more family members of Barry Tannenbaum, alleged mastermind of the R12.5-billion Ponzi scheme in which high-profile South African business leaders invested money.

Tannenbaum's wife, Debbie, and brother, Michael, who was unaware of the warrant when contacted on Friday and strongly denied any involvement, face charges of money laundering and fraud.

Arrest warrants for more "key people" are likely to follow in the investigation, which involves 880 investors, 127000 transactions and 10 countries, sources close to the process said.

The Tannenbaum scam had investors believing they were financing importation of raw materials for the local manufacture of pharmaceutical products, with promised returns of as much as 200% per year.

Debbie Tannenbaum's involvement allegedly dates back to 2006 when she started signing "crucial documents", the sources said. She has allegedly also served as a director and trustee of the Australia-registered Bartan Group, through which accounts about A$100-million (R739-million) was moved.

It is alleged that Michael Tannenbaum was involved in the scheme in the early years, and that guarantees he gave Meir Levin, a New York-based lawyer and alleged major investor, helped it to take off. Tannenbaum said on Friday that these guarantees were done in good faith. "To be clear, I have played no part in, known about or gained from any fraudulent scheme."

On Friday, Darryl Ackerman, the Tannenbaum couple's lawyer, said he was "totally unaware" of the warrant of arrest issued. "I find it quite strange. In my opinion, Debbie never had any involvement in that at all."

A warrant of arrest for Barry Tannenbaum was issued in 2009.

The couple remain in Runaway Bay in Australia, a source close to the investigation said.