It’s a scam, says Stefanutti Stocks
IS OFFERING 100% RETURNS
JSE-listed construction group Stefanutti Stocks has called an investment scheme that has been using its name and company registration number on its marketing brochure a “scam”. It says it has no relationship to the operation at all.
The scheme, Royal Fund Investment, has apparently been marketing itself in Cape Town and Mokopane in Limpopo. It promises returns of 100% in 15 working days for investments from as little as R200.
The company told Moneyweb: “We have no knowledge, interest therein and are not affiliated to this so-called fund. Our legal advisors have been instructed to take legal action against the fraudsters, which process has commenced and is ongoing.” Moneyweb was alerted to the scheme by a person in Mokopane, who recently lost money in the collapse of controversial bridging finance scheme, Choice Lifestyle. He said he has friends who have now turned to Royal Fund Investment, even though he warned them it did not look legitimate.
Moneyweb contacted the individual managing Royal Fund Investment, Demont Quinn*, who insisted his operation is neither a scam nor a Ponzi scheme.
He said the fund generated profits through forex trading and property. “We have offices in different countries and we trade forex. Most of the profits stay with us and we give those to our members.
“And with some of the money we also invest in property. We buy and sell at a profit. As soon as you invest with us, you are also part of every purchase. We buy property, rent it out. We buy property, renovate and sell. Buy land and build. It’s quite a variety of things that we do under the same company.”
He claimed 100% profit was guaranteed, “anytime”.
There are many reasons for investors to be cautious. Besides exceptionally high returns, Royal Fund Investment displays several suspicious characteristics. The purported link to Stefanutti Stocks is primary among these. Quinn told Moneyweb that Royal Fund Investment works with Stefanutti Stocks on property deals. “Some of the properties we get from them or give to them. It’s people we work with.”
But he was unable to name anyone he deals with at the company. When Moneyweb relayed Stefanutti Stocks’ statement that they had no affiliation whatsoever to Royal Fund Investment, Quinn said he would have to engage with his legal department.
On Royal Fund Investment’s website, the scheme claims it “is a proud investor at Breville Group Investment in London … which is listed on the LSE”. Moneyweb did not find a company called Breville listed in London.
Royal Fund Investment is not registered with the Financial Sector Conduct Authority. To be running an investment fund, it would need to be properly licensed.
*Demont Quinn is not the same individual as Demot Quinn, a previous chief financial officer at Stefanutti Stocks. Moneyweb also has good reason to suspect that Demont Quinn is an alias.
Lawyers have been instructed to take legal action.