Stokvel matter to be handed to police
The Financial Sector Conduct Authority (FSCA) has completed its investigation into United Africa Stokvel and will hand over the matter to law enforcement authorities.
The FSCA started probing claims early in 2023 that the Bryanston-based stokvel was swindling people out of millions.
Gerhard van Deventer, divisional executive of enforcement at the FSCA, said: “My team is finalising the forensic report. We have obtained all the bank account evidence and interviewed the directors. The next step for the FSCA will be to proceed with enforcement sanctions and we will assist the police and prosecution.”
The Sunday Times tried to contact Darren and Shirley Langbein, the owners of the stokvel, in December and again this week, to no avail.
Alleged victims said they were told their money would be invested in telecommunications. There were different categories in which people could invest, with a general six- to 12-month waiting period to be paid out.
“There are various complaints from clients saying that though they were promised returns they have not received them,” the FSCA said in 2022.
At the time the FSCA suspected the stokvel of breaching financial sector laws. It was not authorised to provide financial products or services and the FSCA disputed its claims that it had applied for a financial services provider licence.
“During the investigation we executed a search and seizure warrant to obtain evidence,” said Van Deventer.
“We understand that about 200 clients applied to court to take over the Nedbank account of United Stokvel. We did not hand the matter over to the Financial Intelligence Centre or Asset Forfeiture Unit because there was no real money left in the bank account.”
He added: “Once we have imposed sanctions, we will ... inform the public.”
Meanwhile, a 52-year-old electrician, medically boarded from a mine where he worked until 2014, is consumed by guilt.
“I invested about R350,000. In the beginning it seemed to work well. I invested R10,000 late in 2022. The waiting time was six months. When my money paid out I invested the same amount again, which also paid out.”
Based on his experience, he shared the news. “My friends and family paid money into my account and I did all their applications. In total, with my own investment included, we are talking more than R1m.”
It has now been “almost a year” of sleepless nights: “This was my retirement money. Now I am 52 and sit at home with nothing. That is not even the worst. I have put people I love in danger by exposing them to this scam.”
A 42-year-old former banking industry consultant invested R20,000 in November 2022. “I am now out of pocket to the tune of R370,000 and I don’t know how to tell my family. This was part of my retrenchment package and now I am a direct marketer to keep my head above water.”
She is one of about 500 alleged victims of United Africa Stokvel belonging to the same WhatsApp group.
“There are people who invested their pensions, their retrenchment packages and their savings. Some people divorced because of this and others lost their dreams of a first real home. Someone has to give us justice,” she said.
Police spokesperson Col Dimakatso Nevhuhulwi confirmed that a fraud case had been opened in Sandton but no arrests have been made.