Long faces at Vox, methinks!

[rwenzori]

I'm sure this Dealstream disaster will be properly exposed in time, but some quite fascinating stuff at:

http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-24_2398255

http://www.fin24.com/articles/default/display_article.aspx?ArticleID=1518-24_2398242

http://www.fin24.com/articles/default/display_article.aspx?ArticleID=1518-24_2398428

Despite denials that it was exposed to Dealstream Securities, telecommunications firm Vox Telecom confirms it had R30m lodged with the failed derivatives trader.

And in a letter to employees, Vox CEO, Douglas Reed, said employees' accounts at Dealstream had been wiped out.

"What this means is that whatever you owned is gone and the chances of recovering anything are zero. Those with the staff loans will be left with a liability. My estimation of the situation is that Dealstream has R16m in the accounts and creditors exceeding R1bn," Reed said.

On Tuesday morning, Vox announced through the stock exchange's news service it had around R30m lodged with Dealstream and that they were currently investigating legal options to try and recover these funds. Reed also confirmed that employees were not going to be unscathed.

Vox CEO Doug Reed said the R30m had been housed in a trust account as part of an incentive share loan scheme for employees.

On Tuesday morning, Reed confirmed that he had faced a meeting with Dealstream managing director, Russell Leigh, on Sunday where Leigh reassured him that everything was all right

"We contacted Russell Leigh (Dealstream MD) and met with him on Sunday; to be honest he convinced us that there were no issues, everything was under control... On Monday, he SMS'd his staff to say it was at a client collecting money and left them to face a raging mob. We realised that the assurances of the day before were downright lies," Reed wrote in his letter.

Vox employees were also told that at least one account that had apparently been sitting in a 'trust' account with Investec to the tune of R12m had also been stripped dry.

Sounds like Investec has been stealing money again too ( as any Noseweeker would know ).

 

[mizarc]

Check out http://dealstreamfraud.blogspot.com/

If you been defrauded by them.