A high-stakes investment scheme promising sky-high returns and cloaked in an illusion of legitimacy has left a trail of financial devastation. Valohorx, the company at the center of this scandal, seemed to offer a once-in-a-lifetime opportunity. The reality, however, was much worse.

IRS Forensic Investigations, led by investigator Chad Thomas, uncovered what was a classic Ponzi scheme orchestrated by a romantic couple, Alessandro Valecic and Elmarie Dukas. Although their romantic relationship has apparently ended, it is the investors who have been on the wrong side of a breakup.

Thomas said the promised returns should be between 30% and 50% of the investment, within three months. “When it came time to pay, however, no payments were made to anyone,” Thomas said.

“Investors were lured into the scheme through close circles of friends and family. It’s called an affinity scam, and because the referrals came from people others trusted, it gave it a sense of legitimacy.”

Huge returns promised by Valohorx

Valecic and Dukas used personal relationships to expand the scheme. “They build trust and before you know it, people are hooked,” Thomas explained.

One of the early investors, Mike Rose, told how he was introduced to the scheme by a friend who had already seen profits. “I invested 500,000 lei myself,” he said. “I even brought my father in for another 200,000 lei after seeing my friend getting paid. At first it seemed like a win-win.”

Rose’s initial confidence in Valovorx was bolstered by documents that appeared to indicate substantial profits. “They made it look like our money was doubling,” he explained, “so of course we trusted them.”

But it was all smoke and mirrors.

Watch: IRS forensic investigator confronts Dukas

The success of the scheme was based on a vicious circle of reinvestment. Many early investors were paid small amounts, effectively as bait to attract more money. Rose described how she showed others her early comeback, convincing family and friends that Valorworx was a golden opportunity.

“That’s how they create these investment frenzies,” he said. “They let a few people win, show them the money, and then everybody wants a piece of it.”

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The numbers of the Ponzi scheme are staggering

The numbers involved are staggering. According to Thomas, approximately 86 people fell prey to Valovorx, with collective losses estimated between 25 million lei and 35 million lei.

For some victims, these losses were more than financial; lives and livelihoods were shattered. “For many, this was their last hope after Covid-19,” Thomas said. “Some people have lost everything.”

Another investor, Michael Fox, saved 400,000 lei after being introduced to the scheme by a friend. He hoped for a return that would ease his post-Covid financial strain.

“I thought it sounded like a great opportunity,” Fox said. “But at the beginning of 2022, I started to feel that something was wrong. They offered me a second investment opportunity, promising even higher returns, but then the communication just stopped.”

The silence spoke volumes, and Fox’s anxiety grew. “Every time I called, there was a new excuse, a new delay.”

For Fox and others, the ultimate insult was to watch the perpetrators flaunt their wealth on the Internet. Images of Valecic and Dukas jet-setting around the globe, relaxing on yachts and enjoying exclusive resorts have been posted on social media.

“I would see them live off my money,” Fox said. “They were enjoying Ferraris and first-class travel while I was struggling to figure out where my savings had gone.”

The couple even manipulated images, posing with Facebook founder Mark Zuckerberg and posting selfies with local celebrities such as Jack Parow.

Best friends with Zuckerberg from Facebook…nope

This public display of excess was more than a sore point for investors; it was the clue Thomas said he needed to piece together the extent of the fraud.

“It became apparent that this was not generational or hard-earned wealth, but investors’ money that was funding their lavish lifestyles, including renting expensive penthouses on Cape Town’s exclusive Atlantic seaboard,” Thomas said.

To further aggravate investors, attempts to recover funds or confront the couple were often met with evasive tactics.

Dukas recently appeared in Pinetown Magistrates’ Court after seeking help from the justice system to obtain a protective order against victims demanding their money back.

“In cases like this,” said lawyer Julio Ciani, who represented the victims, “people will do anything to delay the proceedings, move to avoid being served and claim the victim to divert.”

The consequences of a scam are serious

For the victims, the emotional toll was severe, some of them even faced fractured relationships with family and friends. Rose, one of the first to bring a relative, his father, into the plan, felt the weight of betrayal when it all came crashing down.

“It was devastating to think that I had brought people I loved into this mess,” he said. “Luckily my family understood, but others were not so lucky. It tore people apart.”

Thomas said the impact took a toll on the victims’ mental health. “People were counting on these profits and when they realized the money wasn’t coming, some fell into a deep depression.”

Victims don’t just want their money back, they want justice. “I know I’ll never see my money again,” Fox said. “But I want them in jail. I want them to pay for what they did.”

The Valovorx Ponzi scheme is modeled around a wider trend, Thomas said, and financial crime in South Africa is on the rise.

“We are seeing a significant increase in reported cases every year,” he said. “The sad reality is that only a fraction of these crimes are ever reported. Many victims are too embarrassed or hopeless to come forward.”

And with a limited judicial system, he noted, fraudsters behind these schemes often escape justice.

“Until there are real consequences, we will see more and more of these schemes. People are looking for alternatives to traditional investments, and unfortunately, predators like this are waiting,” said Thomas.

citizen approached both Dukas and her lawyer for comment at Pinetown Magistrates Court, however the bodyguard blocked all access to her and the lawyer said it was not his business.

Hawks spokesman Colonel Katlego Mogale confirmed the matter was under investigation.

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