A would-be investor’s small but niggling doubt about a tempting investment offer in an empowerment company lead to the recovery of about R10m collected as part of a suspected ponzi scheme with offices in Pietermaritzburg that was also marketed elsewhere. An office worker was offered a R240,000 return over two years — or 116% a year — if he invested just R65,000 in an empowerment deal that would provide money for a logistics company. The man was given brochures offering him the investment in Exclusive Empowerment Holdings, which would invest in trucks and trailers for transport company Chenge Logistics. If he invested as much as R300,000, he could earn a R1.08m return after two years — a 114% return, the brochure said. The man was tempted to resign and cash in his pension to invest, but fortunately he checked with a financial adviser before doing so. It wasn’t the first time staff at the adviser’s practice had heard about the amazing returns the companies were offering. One knew of a...

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