Thursday, February 10, 2011

Realcor Holdings another Property Syndication Company in Deep Water

Cape Town - In a new low for about 3000 investors in the unfinished Radisson SAS Hotel in Bloubergstrand is the relevant investment company's license as a financial service provider being suspended.

The Financial Services Board (FSB) did not hold back, and on 3 January found that the investors are mostly older people, or pensioners who "for their survival is dependent on the income of their investments.

In an FSB investigation into the company, Purple Rain Properties No. 15 (which is also linked to Realcor) found that the company no longer meets the requirements include honesty and integrity.

The FSB on 14 October last year a complaint received that investors not be paid. The FSB then a statement obtained by PricewaterhouseCoopers that investors can be paid because Purple Rain have no money and "new investors 'money is used for existing investors' legal income to pay.

The FSB also argued that investors' money in a trust account was paid and later transferred to a current account "for use at the discretion of those at the helm was" Purple Rain.

In addition alleged that brokers deceived their clients by pretending that the investments in certain property taken. In fact it is rather a property.

With the company's compulsory repayment of one year bonds worth R326miljoen, 80% of clients' investments reinvested.

"It is unclear on what basis these reinvestments made, and whether clients were informed that the suspension of the one-year bonds due to the violation of the Banking Act was," the FSB report.

The Burger me. Deonette de Ridder, owner of Realcor Holdings, yesterday afternoon approached for comment. She did not react.

The Civic had previously reported that the property company Realcor Holdings is also an application for provisional liquidation by Absa Bank in the Western Cape High Court against it.

- Die Burger