On Sunday 8 July 2018, Carte Blanche investigated how one high-end car dealer had hundreds of people fooled with a bogus cash-back dealer-assist investment scheme linked to a non-existent oil company in Dubai. The various parties mentioned in this story have responded.
You can watch the full story here.
From: Kate Barry
Sent: Tuesday, 03 July 2018 13:43
To: COETZER ERIKA (Cedar Isle Auto)
Subject: Justin Lineveldt
Dear Erika
Further to your conversation with Devi, we would like to know the following:
1. When did Justin start working at BMW Cedar Isle? On what basis?
2. When did BMW South Africa instruct all Dealer Principals not to employ Justin or be involved in the QSG cash back scheme?
3. How many cars does Justin have on consignment at BMW Cedar Isle?
4. When did Justin stop working from BMW Cedar Isle and why?
Many thanks
Kate Barry
Carte Blanche
On 2018/07/05, 08:55, COETZER ERIKA (Cedar Isle Auto) wrote:
Dear Kate,
I refer to my telephone call with Devi earlier this week and would like to confirm that Cedar Isle Auto has not been involved in any illegal or fraudulent schemes in the past, nor will we be involved in finance schemes that do not adhere to the National credit regulations. In particular we have not been involved in any QSG cash back schemes. This statement is supported by the findings of our recent FIC audit that was concluded in June 2018.
1. The negotiations re the employment of Justin started mid-March, with an official appointment date of 3 April 2018. He was appointed as a BMW New car sales executive.
2. BMW informed the Dealer Principals about the existence of a “Ponzi scheme” at an Investors conference in October 2017. At that stage, specific names were not mentioned, but BMW warned the BMW Approved dealers not to get involved in illegal schemes. This communication was followed up by numerous communication from BMW Financial Services to the dealer network.
Around the end of March, when BMW realised that we employed Justin, they informed me about their concerns regarding his employment due to his alleged involvement in the QSG cash back scheme.
4. I met with Justin on the 5th of June advising him that we need to end his employment with Cedar isle Auto due to the information that BMW brought to my attention. He eventually sent me his resignation letter on the 12th June.
Parts of the separation agreement with Justin was that he would refer customers to our dealership.
3. We currently have 196 cars in stock. We have 4 vehicles on consignment from customers, 2 of which was for Justin. These cars are no longer here.
Kind regards
Cedar Isle Auto (Pty) Ltd
Erika Coetzer CA (SA)
Managing Director