Two individuals allegedly involved with the business, Mzoxolo Bezu and Mbuso Mthethwa, were also named.
“Go Direct Stock Market Investments, Bezu and Mthethwa are not authorised to render financial services and are not representatives of an authorised financial services provider,” the FSB said in a statement.
“The Registrar of Financial Services Providers has received complaints from clients that their money invested with Go Direct Stock Market Investments, or invested on behalf of clients by Go Direct Stock Market Investments, has never been paid back and that they have not received promised returns on their investments.”
In October 2014 the Grahamstown High Court ordered Go Direct Stock Market Investments to pay back more than R1.5 million to more than 17 investors who made a claim against it. The company allegedly offered returns of 35% a month, which would double to 70% on any amounts over R100 000.
However, when investors tried to withdraw their money, they weren’t given the amounts promised and weren’t able to reclaim their original capital. The FSB noted that Go Direct Stock Market Investments’ clients had been given a range of excuses for why they’d not been paid out.
“All clients were promised specific returns but on the day upon which the money was supposed to be paid, they were notified of new conditions such as penalties, fees and/or 30% tax fees. They were also told that the stock market had fluctuated, or that Go Direct Stock Market Investments would be keeping the interests that the investor had earned.”
On its website, Go Direct Stock Market Investments claims to be an “introducing broker” to ACM Gold and Forex Trading. It claims to offer clients the ability to trade foreign exchange, commodities and contracts for difference (CFDs).
ACM Gold and Forex Trading itself had its licence temporarily withdrawn by the FSB this month. However, an ACM spokesperson told Moneyweb that the two matters are not related.
The regulator warned consumers who wish to conduct financial services with an institution/ person to check beforehand with the FSB (on toll free 0800 110 443) or on www.fsb.co.za as to whether or not the institution/person is authorised to render financial services. Attempts by Moneyweb to contact Go Direct Stock Market were unsuccessful.