JOHANNESBURG – Businessman Yunus Moolla is tight-lipped on how he is able to pay a 6%-a-month return to his investors. That’s 72% a year uncompounded.
The investment is made through Moolla’s company, Carmol Distributors (Pty) Ltd. Investors apparently finance the trade of petroleum products, particularly diesel.
Carmol’s investment offering was brought to Moneyweb’s attention by a reader who wondered if it might be too good to be true.
The reader says she knows many friends and family members who have invested with Moolla. Some have even taken out loans to finance their investment. She estimates that about R80m has been invested to date.
“I cannot tell my friends this is a Ponzi scheme since I have no proof, and also they are receiving their returns every month, so they are happy,” says the reader. Moolla denies Carmol’s business is a Ponzi scheme.
Moneyweb has been provided with a blank copy of an investor agreement (click here to download). The agreement is between the investor and Carmol Distributors.
The agreement states that the minimum investment period is 12 months, and that the average monthly return is, on average, 6-8%.
Moneyweb asked Moolla how the returns were generated, and whether there was any independent verification of profits.
Moolla responded in a letter (click here to download). He says that Carmol Distributors is a business that sells and distributes petroleum products and has been doing so for approximately five years.
“Initially the business was small and the funding came from myself and a few close acquaintances,” says Moolla. “I am pleased to advise that the business grew substantially and provided an opportunity for larger volumes to be purchased and distributed.”
Molla says he is happy to report that every single person that participated with Carmol Distributors has not only received a return of approximately 6% a month. Further, he says that nearly every participant has had more than their initial capital returned by way of the monthly returns.
However, Moolla says he is unable to share further “trade secrets” or “intellectual information” regarding the business.
“I am certain that you will appreciate that businesses are weary of releasing information that could potentially threaten their client base or their supplier base,” says Moolla.
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