The Ombudsman for Financial Services Providers (Fias) has ordered a Cape Town business that solicited investments from the public with promises of extravagant guaranteed returns from a risky unlisted platinum mining venture, to repay two of the investors. The ombud also referred the two cases against Silver Seed Capital and its representatives to the regulator, the Financial Services Sector Conduct Authority and encouraged the investors to lay criminal charges. The regulator withdrew Silver Seed Capital’s licence in 2014. The investors, Johannes van Zyl and Lionel White, have never recovered the R100,000 and R35,000 they invested, respectively, and nobody knows what happened to their money, according to Fais ombud Naresh Tulsie. Tulsie found that Silver Seed Capital and its director, Sandro Manuel Azevedo Veloza, flouted various provisions of the Fais Act and its general code of conduct when he and his advisers recommended the investors put their money in mining venture UG2 Platinum...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now