File picture: Sxc.hu File picture: Sxc.hu
Cape Town - Furious investors in an alleged Ponzi scheme, which promised to pay them interest as high as 440 percent, marched on two police stations in Touws River and De Doorns to demand the company's bank accounts be unfrozen.
On September 29, the Hawks pounced on the home office of David Cupido, 40, in Touws River, where he was operating 4th Power Investments.
Cupido is also a local pastor and leads 4th Power Ministries.
Police seized equipment, including computers, from his home and the scheme’s banking accounts were frozen, leaving thousands of investors without the money promised.
Joey Ntoyi, a 55-year-old grandmother from nearby Worcester, heard about the scheme from friends and neighbours.
She invested her money in September, at first R2 500, and then another R2 500 in October.
“They didn’t say how much I would get out, they only gave me a piece of paper indicating how much I would get.
“I was expecting to get at least R11 000 when my investment matured now, in November,” said Ntoyi.
She said she started hearing stories about the collapse of the scheme in the local community newspapers, but Cupido promised investors all was well.
Gerrit Jaftha, who led the march in Touws River, described Fourth Power Investments as a company which did “money trading”.
“He (Cupido) received this vision from God and we trust (him) because he opened his doors for everybody. He's gifted, when he does trading it's like the Holy Spirit is guiding him.”
He said 4th Power Investments started growing rapidly in March and even though detractors thought it would collapse, it grew because it paid investors back their money monthly as promised.
“When you invested money, you received your money.
“All of us who invested, we are happy with that guy, we received the money that we put in and we still received lots of money.
“They (police) want to tell us it’s a Ponzi scheme, which it isn’t. That guy is really doing trading.”
Hawks provincial spokesperson Lloyd Ramovha said charges of fraud, theft, money laundering and contravening sections of Financial Advisory and Intermediary Services Act and Banks Act were being investigated against Cupido.
Cupido had been conducting the business of a bank (taking deposits) without having been registered with the Financial Services Board, according to the Hawks.
Cupido was not arrested, but faced an application for liquidation in the Western Cape High Court, which was postponed until February 21.
quinton.mtyala@inl.co.za
@mtyala
CAPE ARGUS