'Ponzi scheme’ investors march to Hawks office in Worcester
Investors of the 4th Power Investment scheme in Worcester met Hawks officials investigating the scheme's director, David Cupido, on Wednesday.
On Monday, about 800 people protested in Touws River because they were informed that Cupido could not pay them out because the Hawks had frozen his accounts.
Cupido had promised interest of up to 440% for a R1 000 investment and was under investigation for contravening sections of the Financial Advisory and Intermediary Services Act (FAIS) and Banks Act were being investigated against him.
He had been conducting the business of a bank (taking deposits) without being registered with the Financial Services Board, according to the Hawks.
On Monday, Touws River resident Franswa Pietersen said he did not believe Cupido any more as he had broken his word too many times, and even rejected options to proceed with payouts by lawyers.
“Contrary to what the investors are reportedly being told, it is not true that we are blocking payments.
"If anything, we would like to encourage 4th Power/Mr Cupido to go ahead and pay the investors as there is no hold on the said accounts,” he said.