The scheme that conned people including government officials of millions of rands in the Eastern Cape was not a registered entity, the Financial Services Board (FSB) confirmed yesterday.
The “Ponzi” scheme, X-Traders Market – also known as XTM which operated from offices in King William’s Town and Fort Beaufort – had been operating in the province since February this year.
FSB helps prevent many South Africans from losing their hard earned money to illegal money-making schemes.
Thabang Malimabe, head of the Financial Advisory and Intermediary Services Act compliance at FSB said they regulate foreign exchange (forex) trading. “The entity in question is not authorised or registered with the FSB, we do from time to time issue warning to the public if such operators are brought to our attention,” he said.
People were told their money would be invested in forex to make the massive profits.
On Monday last week the company closed its doors and left thousands of investors facing the loss of their money, believed to be millions of rands.
It closed its doors as many people fell victim to a special investment where people were given a “15 days special with 100% profit”.
The people were told that if they invested they could win a Datsun Go vehicle.
Police confirmed they were investigating the scheme but said no arrests had been made.
The scheme is operated by four men, believed to be from Durban. — bonganif@dispatch.co.za
Money scheme was not registered
The “Ponzi” scheme, X-Traders Market – also known as XTM which operated from offices in King William’s Town and Fort Beaufort – had been operating in the province since February this year.
FSB helps prevent many South Africans from losing their hard earned money to illegal money-making schemes.
Thabang Malimabe, head of the Financial Advisory and Intermediary Services Act compliance at FSB said they regulate foreign exchange (forex) trading. “The entity in question is not authorised or registered with the FSB, we do from time to time issue warning to the public if such operators are brought to our attention,” he said.
People were told their money would be invested in forex to make the massive profits.
On Monday last week the company closed its doors and left thousands of investors facing the loss of their money, believed to be millions of rands.
It closed its doors as many people fell victim to a special investment where people were given a “15 days special with 100% profit”.
The people were told that if they invested they could win a Datsun Go vehicle.
Police confirmed they were investigating the scheme but said no arrests had been made.
The scheme is operated by four men, believed to be from Durban. — bonganif@dispatch.co.za
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