Johannesburg - A financial adviser, who was a dominant part of the BondCare investment scam, estimated the value of his investment book to be R11.55 million.
Nolutu Bam, the Ombud for Financial Advisory and Intermediary Services (Fais), said the financial adviser, Alesio Mogentale of Doornpoort, Pretoria, further confirmed in an affidavit provided to her office that he earned commission of 6 percent on each investment. This would bring the estimated amount he made as commission to R693 264, she said.
But Bam said that given Mogentale’s disregard for the Fais Act, it was not clear whether the commission he earned was ever disclosed to Johannes, 80, and Johanna de Beer, 74, from Gauteng.
They lodged a complaint with the office of the Fais Ombud, claiming they had been persuaded to invest R200 000 in BondCare because of misrepresentation and false information provided by Mogentale.
Bam, in a determination released yesterday, ordered Mogentale and/or Introvest 2000 to repay the couple the R200 000 they had invested in BondCare.
They claimed they did not know anything about property investments and accepted it when Mogentale assured them that BondCare was a safe investment.
Bam said evidence provided indicated BondCare solicited investments from members of the public under the auspices that these funds were protected in the trust account of an attorney by the Attorney’s Fidelity Fund, but there was no evidence to support this.
Bam added there were simply no visible means of holding Mogentale and Louis Jermia Cornelius Smit, who was a director or member of BondCare, BondCare Financing and BondCare Trust, to account.
She said Mogentale and Smit were the two dominant individuals in BondCare.
“Predictably, as soon as money was paid into BondCare, Mogentale and Smit, hiding behind an undisclosed conflict of interest, started paying themselves undisclosed amounts of money from investor’s funds,” she said.
BondCare was marketed to potential investors as an opportunity to advance their money at an attractive interest rate to buyers of immovable property who did not have the necessary funds to pay the transfer duty and transfer fees.
The investment was to generate an income of 18 percent interest a year and the fund could be withdrawn by giving 90 days notice.
BUSINESS REPORT