‘Ponzi’ conmen vanish with millions

Hundreds of people, including Eastern Cape government officials, are believed to have lost millions of rands in an investment swindle.

The outfit, X-Traders Market, dubbing itself XTM, operated from offices in King William’s Town and Fort Beaufort, and claimed to have a head office in Durban and other offices in Maritzburg, Greytown and Pongolo.

It apparently scammed investors of their savings with promises of extraordinary growth in returns.

Eastern Cape investors who were stung are from East London, Mdantsane, King William’s Town, Dimbaza, Bhisho, Butterworth, Dutywa and Fort Beaufort.

Many invested thousands, and in classic Ponzi-scheme fashion, some were initially paid good money, which lured them back to invest more.

Investors were promised massive returns involving foreign exchange trading (forex).

According to thousands of their glossy pamphlets, operators “Menzi”, “Bernard”, “Sandile” and “Gift” promised that a six-month investment would produce:

lR15000 from a R1000 investment;

lR150000 from a R10000 investment; and

lR750000 from a R50000 investment.

Police confirmed they were investigating the scheme after being approached by a number of people who reported they had been defrauded.

Yesterday the Daily Dispatch team visited a building in King William’s Town CBD where the “company” had offices.

Police detectives from the forensic unit were combing the offices and removing everything that could assist them in their investigation.

Police officers on the scene refused to speak to the Dispatch saying that they did not want their investigation to be jeopardised.

King William’s Town police spokeswoman Captain Siphokazi Mawisa, said: “We can confirm that a case of fraud has been opened in King William’s Town for investigation,” but added that no suspects had been arrested.

X-Traders Market former employee Dambisa Mkosi of Mdantsane said she suddenly found herself unemployed last Monday when the four bosses vanished.

None of them were picking up her calls.

Mkosi said the company started up in King William’s Town in February.

“I was one of the first people who was employed and I even invested.

“Lucky for me we did get something back,” she said.

However, Mkosi said thousands of others became victims when the company closed its doors on October 13.

She said the business had offered investors a chance to win a new car if they invested a minimum of R10000.

“They closed at the time there was a special. Thousands of people came to invest in the hope that their money would double.

“They made millions of rands and then they dumped us,” she said.

The pamphlet promoting the special depicts a sedan supposedly “up for grabs” and has “Hurry hurry hurry” printed on it.

A think bubble emerges from the driver’s seat urging: “Invest from R10000 & stand a win a brand new car.”

One of the victims is a 49-year-old civil servant who invested R20000 early in the year, hoping to cash in R300000 by November. “I believed them because my initial investment of R5000 was paid to me a month later as R8000. I decided to put in R20000 with the hope that I would get R300000 later in the year,” he said.

Another senior government official based in King William’s Town told Dispatch she lost close to R60000.

“Initially I invested R1000 and a month later I got R800 as an interest payout. I noticed that a number of people were joining in and I thought this was for real.

“I later invested more money, including my September salary but now my money is gone,” she said.

Another employee, who wanted to remain anonymous for fear of victimisation, said some of the clients were making their lives miserable.

“People are asking about their money and we have no answers.

“The offices are closed and we so wish that we can help but we can’t,” said the employee. — bonganif@dispatch.co.za