Suspected Ponzi firm Coin It moving contracts to other firms, FSCA warns
Investors have been urged to steer clear of any further agreements with Coin It Trading
Coin It investors, be warned: if you’ve received a letter from the management of Coin It Trading, advising you that your contracts with the company will be transferred to other associated companies, do not enter into any further agreements with such unauthorised entities.
The Financial Sector Conduct Authority (FSCA) issued the warning in a media release on Thursday.
Earlier in 2019, the FSCA launched an investigation into Coin It Trading and Commex Minerals for suspected breaches of financial sector laws. This included a search and seizure operation by FSCA investigators at the companies’ shared premises in Dundee, KwaZulu-Natal.
In September, the FSCA opened a case with the Hawks for further investigation. This investigation is under way, with the Asset Forfeiture Unit (AFU) having recently obtained preservation orders against some bank accounts linked to the two investigated parties.
“The AFU will now start tracing assets belonging to Coinit and Commex,” the regulator says.
“Neither Coin It or Commex, nor its directors Michael Andrew Anthony de Beer and Patricia Ursula de Beer, are licensed to conduct any financial services or receive deposits from the public. The recent correspondence by Coin It management to transfer investors to alternate, unnamed companies would once again be in breach of financial sector law, should these companies also not be licensed financial services providers.”
The FSCA warns that you, as potential investor, always take professional advice before investing in an investment or business opportunity. Remember that the higher the potential return offered, the more risk involved and the greater the chances of the operation being unlawful and criminal in nature, the regulator cautioned.