Belvedere collapses after Ponzi scheme exposé

Source: Biznews, 08/10/2015

Cape Town - Cobus Kellermann`s Belvedere Management has collapsed, six
months after being exposed for a Ponzi scheme.
Offshore Alert, a US-based company which specialises in uncovering
fraud in offshore financial centres, in March called out Belvedere,
describing it as "a massive criminal enterprise". Belvedere, which
controlled assets worth an eye-popping R200bn, was jointly owned by
Kellermann and his Irish business partner David Cosgrove.
Fin24's content partner BizNews on Thursday reported that only six
months after the exposé, it has now officially been confirmed that
R4bn of investor money was gone and billions more were unaccounted for.
BizNews in March did their own research following the Offshore Alert
tip-off and found that the size of Belvedere`s alleged Ponzi scheme
dwarfs anything that has hit South Africans before. It is 10 times the
scale of the well-publicised Barry Tannenbaum scam.
Alec Hogg, owner and publisher of BizNews, said on Thursday that "the
wheels of justice grind slowly, but, even when they uncover tentacles
that run from South Africa to Guernsey, Mauritius, Gibraltar, the
Cayman Islands and Anguilla, those wheels do grind finely".
He said that following the publication of the alleged Ponzi scheme,
his website was briefly paralysed by a cyber attack, followed by legal
threats from SA heavyweight legal firm Werksmans, which accused
Biznews and Offshore Alert of sensationalism and being irresponsible
Capetonian Kellermann accused as kingpin of R200bn Belvedere Ponzi
Mar 23 2015 10:07
Johannesburg - Cobus Kellermann, Stellenbosch University graduate now
in his late 30s who runs Cape-based money manager Clarus Capital, has
been fingered as a mastermind behind a massive global Ponzi scheme run
out of Mauritius.

Kellermann`s company also manages eight South African unit trusts
under the Met Collective Investments banner. They have been entrusted
with R1.35bn in savings from unit trust investors.

Offshore Alert, a US-based company which specialises in uncovering
fraud in offshore financial centres, describes Kellermann`s Belvedere
Management as "a massive criminal enterprise". Belvedere, which
controls assets worth an eye-popping R200bn is jointly owned by
Kellermann and his Irish business partner David Cosgrove.

Given his domicile and standing in the financial services community,
it is feared that South Africans who trusted Kellermann with their
money stand to lose billions of rand invested offshore. The size of
Belvedere`s alleged Ponzi scheme dwarves anything to have hit South
Africans before. It is ten times the scale of the well publicised
Barry Tannenbaum scam.

The Clarus Capital website previously listed Anchor Capital founder
and CEO Peter Armitage on its page listing "Key People". After the
draft of this article was sent for comment to Kellermann (and
Armitage) on Saturday morning, the highly rated Joburg asset manager`s
name was removed.
Armitage told Biznews he manages some money for Clarus and agreed when
asked by Kellermann, "a delightful man", for his name to be included
for marketing purposes. No response to the request for comment was
received from Kellermann or Clarus. This is consistent with his
refusal to engage when my team at Moneyweb tried repeatedly two years
ago when he was linked to a previous Ponzi scandal.

In October, Kellerman`s business was instructed by the Mauritian
Financial Services Commission (FSC) to stop accepting deposits. A
public notice issued by the FSC last week in response to the
OffshoreAlerts article reminded stakeholders of an investigation
conducted at Belvedere`s offices "and in accordance with its functions
to protect consumers of financial services, the FSC Mauritius has
initiated enforcement actions against the company. "

Kellerman`s Mauritian company is also under investigation by the UK
authorities.

Belvedere Management Group owns and operates a number of companies
involved in many aspects of financial services including fund
administration, stock broking, life insurance and asset management
around the world. The Group administers more than 100 hedge funds.

Two of Belvedere`s major operating businesses, Lancelot Global and The
Four Elements, were licenced to accept investments by the Financial
Services Commission of Mauritius in 2009 and 2008 respectively.

Both have close connections to South Africa – Lancelot is the
investment manager of the Armstrong Global Diversified Fund into which
95% of the assets of the local MET CI Global Diversified Feeder Fund
have been invested. The Four Elements is the controlling shareholder
of JSE-listed investment firm BK One.

According to OffshoreAlert, evidence has been uncovered showing the
Belvedere Management Group has also been involved in a US$130m Ponzi
scheme in Cayman. It adds that the City of London Police are
investigating a Ponzi scheme operated by the company in the UK
involving over £100m.

It reports that investors have been duped by tweaked net asset values
illustrating fictitious capital growth. This is common practice among
fraudsters. Among the best known local examples was the Jack
Milne/Tigon scheme operated in South Africa a decade back.
Funds entrusted with Belvedere, OffshoreAlert maintains, have
disappeared through a network of offshore companies. Many of the funds
administered have also been promoted and sold through a network of
well-known financial services companies and intermediaries, including
many in South