More backers stung by Brentwood
Feb 13 2009 17:10
Marc Ashton
Johannesburg - More South African investors have written to Fin24.com saying they have been unable to withdraw their money from offshore firm Brentwood Group.
On February 3 2009, Fin24.com alerted readers and the Financial Services Board to a string of complaints from investors who claimed they had invested money with the offshore group.
Nigel Clamp, an investor in the Brentwood Group, is organising SA resources and contacting investors who may have been burnt by the group to try and recover lost funds. He estimates "as much as $40m may have been taken from SA investors".
Clamp has employed a private investigator who is tracking the group overseas and has met embassy representatives from Japan, Panama, Cyprus, Malaysia and Scotland Yard.
Clamp's investigator claims that global IT giant Microsoft has begun an investigation into Brentwood as it may have been pushing recommendations of Microsoft shares onto "clients".
Investors in Slovenia and the British Virgin Isles are also believed to have set up groups to investigate the company.
The group has been described by South African investors as a "boiler room"-type operation where trained sales agents aggressively pitch "investment tips" to investors and urge them to move money offshore to take advantage of these opportunities.
Three investors say they have from time to time been able to speak to a person called Chris Paine, who has been described as "quite nasty" when investors request a refund of their money.
Another investor warned that South Africans should be wary of telephonic approaches from a company called First Prime Group, which shares an address with the Brentwood Group.
Fin24.com has yet to reach anybody telephonically at the Brentwood Group.
Despite a number of people complaining to the media that they had been unable to withdraw their funds, none have laid any complaints with local regulators.
Fin24.com contacted the head of the FAIS division and Gerry Anderson, deputy executive officer of the Financial Services Board (FSB). They had no knowledge of any company trading as the Brentwood Group, nor had they received any official complaints.
A copy of the previous Fin24.com article has been sent to Anderson.
Anybody with additional information is urged to contact the Financial Services Board to assist them with its investigation.
- Fin24.com
