Suspected Fraud

[Pyro]

A family member of mine suspects his old broker did him in, and I tend to agree as it seems very fishy.

Basically, he retired and was looking to invest some of the lump sum payments.

His old broker, who no longer works as an independent for an investment group for unknown reasons, suggested he reinvest with his money with the new investment group he now works with.

He agreed, and after a meeting where he signed various docs he didn't read properly, they went to the bank.
At the bank he withdrew the agreed money, and the broker took several thousand as cash, and deposited the rest into another account.

This was supposedly a cash amount required to open the new investment account, and the rest is paid into the investment group's account.
Of all these things he's got no real paperwork to back his word.

Several months later he mentioned it in passing while discussing his retirement funds, saying he has gotten no documentation from the investment group yet.

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The cash transaction is the first things that set off alarm bells, but I was under the impression the rest was via EFT. From the sound of things both were cash based, although one of them was paid into a bank account directly after at the same bank, so should be somewhat traceable.

He has since tried to call the broker, but all calls have gone to voicemail.
I suggested he call the investment group to find out why he hasn't received anything.

They said nothing has been received (he's not on their system), and that the broker does not work with them, he only did training. They have started some kind of investigation on their side.

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So? What to do or at least, where to begin?

It seems the broker's WhatsApp is still active even if he isn't taking my dad's calls, so he's still around, and it should be possible to find him.

His Facebook is still active as well, and as far as we know he still lives in the same house.

I do not know if he still has his old offices, but he did try to get me to invest with him shortly after he left the initial group as well, and it sounded like he still used the same team.

There is little to no evidence other than the bank withdrawal and directly afterwards a deposit, so it might be hard to pursue.

 

[Dolby]

If he's still around, possible to organise a type of sting?

 

[NeonNinja]

How does that saying go?

 

[Beachless]

This is not good, if things were ligit he would have had to sign many documents even up front.

I suggest he goes to the authorities and lays a charge.

 

[Pyro]

If he's still around, possible to organise a type of sting?

It's possible, but I don't want to contact the broker without having solid a plan in place.

Given that the he did offer to invest money for me, and I said I might contact him in future, there is a chance he'll agree to meet and discuss an investment.

Alternatively someone else could contact him as a kind of referral for his services at the new investment group. This might be more suspicious if he knows he's not doing deals for them, but might also seem like a juicier target if there's already someone that 'fell' for it that refers another.

 

[Pyro]

This is not good, if things were ligit he would have had to sign many documents even up front.

I suggest he goes to the authorities and lays a charge.

He did sign documents, but he does not have any copies.

 

[MrMag]

For all you know the Documents signed could of pertained to a Business adventure that
has gone bust or liquidated bye, bye money?

 

[ld13]

Sounds like one stupid fraudster. Facebook, cellphone etc is still active and seems to reside at the same house...
Have you checked if the broker is registered with the relevant authorities?

 

[CAPS LOCK]

Stab in the dark here. Are these investment/financial advisors prescribed by the FSB rules to have fidelity insurance cover as a prerequisite to practice?

 

[HavocXphere]

...and thats why my dad asked me to be present at those meetings. :/

Take it to the police. If the fund has started an investigation then its not the first time the guy did that. The money is likely gone. Sorry.

 

[Pyro]

For all you know the Documents signed could of pertained to a Business adventure that
has gone bust or liquidated bye, bye money?

This or any number of similar nefarious things is what worries me.

...and thats why my dad asked me to be present at those meetings. :/

Take it to the police. If the fund has started an investigation then its not the first time the guy did that. The money is likely gone. Sorry.

I'm not sure about the details of the investigation.

It sounds like they started investigating because of my the query.

I did suggest that a fraud case is opened with all the available details.

At the very least I want to prevent other people from getting scammed.
A retiree needs his capital, but I find it unlikely that it would be recovered as well

 

[dunkyd]

Don't be a gullible schmuck !!! Go now and lay a charge of theft at the nearest police station !!!!
Jeeees