Lotto winners’ nightmare

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sonxEr77

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It was tata ma millions for two national lottery winners when they trusted an accredited Standard Bank financial advisor to invest their winnings of R27 million.

The two Lotto winners, whose names have been withheld, are in the process of filing papers against Standard Bank in a bid to get their winnings back.

Standard Bank confirms that financial advisor Arno Döckel was in its employ at the time. But the bank claims the deal with the Lotto winners was made in Döckel’s private capacity and it cannot be held liable. The bank says Döckel’s deals fell outside the scope of his employment contract.

“The two winners were advised by Standard Bank when they won the Lotto and both were referred by Standard Bank to their employee, Döckel,” he said. “The money was transferred to Döckel’s company Stone Gecko, which acted as a fundraiser for KCM.”
http://www.iol.co.za/news/south-africa/western-cape/lotto-winners-nightmare-1.1015932
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Standard bank? last place i would place my 1c into ... these are just the signs of how bad of a bank they can be.
 
“The two winners were advised by Standard Bank when they won the Lotto and both were referred by Standard Bank to their employee, Döckel,”
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The Bank advised the winners what to do with their money and who to go to. And they don't care that their customers got taken for a ride because of their bum advice. Nice bank, if I had money I'd definitely invest it in Standard Bank. Not.
 
“The terms and conditions of his employment contract made it clear that he was only permitted to market a range of approved product categories, which consisted of life assurance policies, unit trusts and other collective investments,” the bank said in a statement.
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Then why did the bank refer these two to him then? Why not to somebody more competent who'll be able to handle this sort of thing?

Aaaaai.

Don't you get honest investors these days? I would flatly refuse to invest my money in some shady scheme, and would rather insist it be invested with the bank only. If said investor doesn't want to, then I'll go to another bank - and let said investor's manager know about what happened and why.
 
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I agree.

The bank advised the winners what to do and referred them to the investor, who was in employ of the bank at the time (by their own admission).

I think if this goes to court the ruling may be in favour of the lotto winners. Well, I hope so for their sakes!
 
Tracer said:
I agree.

The bank advised the winners what to do and referred them to the investor, who was in employ of the bank at the time (by their own admission).

I think if this goes to court the ruling may be in favour of the lotto winners. Well, I hope so for their sakes!
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If they do win do you think the bank will be forced to repay them? i doubt
 
blunomore said:
So did the advisor steal their money, or lose it on the share market ...... or what?
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They allege in their papers that the money was diverted into a complex share transaction scheme which ultimately resulted in Dockel and others gaining while Kimberley Consolidated Mining (KCM), the company in which the funds were purportedly invested, lost out.
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seems the investments lost out as the company is/was liquidated, bit vague still....
 
sonxEr77 said:
seems the investments lost out as the company is/was liquidated, bit vague still....
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Thanks for the clarification.

Standard Bank sucks for doing this.

I wonder if the Lotto winners (now known as losers :p) signed some kind of document (waiver?) with Standard before meeting with the advisor. ...
 
One has to wonder what type of advice and assistance the Lotto board is providing to these lotto winners.. Many people who have lost their lotto winnings never had bank accounts previously and this type of money is incomprehensible to them.

I previously recall that the Lotto stopped paying out the full amount, they used to pay out a small lump sum and then monthly payouts over 20 years. Has this changed?
 
It's so annoying when one reads of lotto winners foolishly losing their money. In their defence in this case they may be uneducated but the morons who blow it all on cars, booze and partying and then crash and are left bankrupt turn around and blame the lotto for "ruining their lives" pisses me off.
 
manesan said:
One has to wonder what type of advice and assistance the Lotto board is providing to these lotto winners.. Many people who have lost their lotto winnings never had bank accounts previously and this type of money is incomprehensible to them.

I previously recall that the Lotto stopped paying out the full amount, they used to pay out a small lump sum and then monthly payouts over 20 years. Has this changed?
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No, you get the full amount paid out.

In the US, in certain states, you have the option of either getting a monthly allowance or the full amount. With the full amount payout it is taxable as by where as the monthly allowance is not. But then on the other hand the company can go bust and then you loose out, over a 20 year period, depending the amount won.
 
Do not understand how Standard Bank can dodge this bullet? It was on the strength of it's recommendation that the two winners used this miscreant. Their recommendation is absolutely trusted.

Unless I am missing something here, the bank should fry and carry the cost and reimburse the lost money. Standard Bank should be responsible for taking recourse against the advisor it recommended.
 
Thinking this further, on the back of this and Standard Bank's inept attitude to this loss, there is no way I would trust any financial advisor working for the bank.

Further, I would also strongly caution, if not persuade, my family and friends to avoid an advisor emanating/working for the bank.

The idea that the bank provides peace of mind or some sense of security/trust, is all completely absent.
 
shame. for once the winners actually did the right thing and still got screwed.
come on standard bank. this is peanuts for you. surely they have insurance which covers this?
 
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