‘Il­le­gal’ provider must re­pay client

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

In a re­cent de­ter­mi­na­tion, the Om­bud for Fi­nan­cial Ser­vices Providers, Nol­untu Bam, has or­dered Mot­soto’s Trad­ing and In­vest­ment of Brak­pan, Gaut­eng, its owner, Lucky Mot­soto, and two man­agers, Zanele and Dolly Mot­soto, to re­pay a client, Bheki Robert Mkhum­buza, the R65 000 he in­vested with the com­pany plus rea­son­able in­ter­est. The om­bud has also re­ferred the mat­ter to the po­lice and to the South African Re­serve Bank.

Mkhum­buza told the om­bud that he had made two in­vest­ments with the Mot­so­tos in April 2013:

◆ R35 000, from which, he was told, he would re­ceive 30 per­cent in­ter­est ev­ery 25 work­ing days for three months; and

◆ R30 000, from which he would re­ceive a 100per­cent profit pay­out after 75 work­ing days.

He had re­ceived not a cent, ei­ther in re­turns or the re­turn of his cap­i­tal.

The com­pany al­legedly in­vested in high-risk se­cu­ri­ties. On in­ves­ti­ga­tion, the om­bud’s of­fice found that the com­pany was trad­ing il­le­gally – it was not reg­is­tered with the Fi­nan­cial Ser­vices Board (FSB) as a fi­nan­cial ser­vices provider and was us­ing a false FSB num­ber to mis­lead in­vestors.

Bam con­cluded that it was un­likely any in­vest­ment ac­tiv­ity had ac­tu­ally taken place, and Mkhum­buza’s money had sim­ply been stolen. – Staff Re­porter

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