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Last week, the Financial Sector Conduct Authority (FSCA) executed a search and seizure warrant at the business premises of Coin It Trading and Commex Minerals, as well as the private home of one of the former directors of Coin It Trading.
This followed a warning by the authority about these entities, which were suspected of operating fraudulent schemes. The FSCA warned that there was a “high likelihood that clients’ investments may be misappropriated”.
Both companies had head offices in Dundee, KwaZulu-Natal. Coin It also has branches in Johannesburg, Vryheid and Newcastle, and Commex Minerals operates in Durban, Johannesburg and Port Elizabeth. According to the FSCA, the businesses are run by a divorced couple – Michael Andrew Anthony de Beer is the director of Coin It and Patricia Ursula de Beer is a director of Commex Minerals.
Coin It offered investors the opportunity to invest in logistics vehicles with promises of a monthly income, while Commex Minerals offered investments in minerals such as coal, again with promises of high monthly returns. Neither business is licensed to conduct financial services, nor to receive deposits from the public.
According to the FSCA, documents and computers were seized for the purpose of determining if there was any evidence that a financial sector law had been contravened.
At this stage, the FSCA is unable to comment about what has happened to investors’ funds, or if the money will be recovered. If you have invested with either company, keep your relevant records so that you can lodge a claim once the investigation is completed.
This is once again a reminder to potential investors not to conduct financial services business with an entity that is not licensed by the FSCA. Also be extremely cautious when offered unrealistic returns. – Maya Fisher-French
