The FSCA has warned the public to be cautious when conducting financial services-related business with United African Stokvel.
The stokvel has almost 100 000 followers on Facebook.
The Authority suspects United African is conducting unauthorised business and breaching certain financial sector laws. United African is not authorised to provide financial products or services.
United African has claimed on social media that it has applied for a financial services provider licence, but the FSCA said it has not received an application.
The social media pages of United African indicate it is a digital stokvel that invests clients’ funds in property and telecommunications. It claims the returns from these investments are used to pay client returns, the FSCA said.
The Authority has received complaints from clients stating that although they were promised returns, they have not received them.
The FSCA conducted a search-and-seizure operation at the premises of United African on 15 June. The operation was part of an investigation by the FSCA into the business activities of United African. The investigation was initiated after the FSCA received a whistle-blower’s report.
The FSCA will examine the evidence, interview the parties involved, and complete the investigation. The Authority may take regulatory action, report the matter to the South African Police Service, and support the National Prosecuting Authority in its responsibilities, if required.
The Authority encouraged clients of United African to contact the FSCA’s Business Centre by using this link.
When Moonstone checked on Tuesday, United African’s website had been taken down.
There are 74 reviews of United African on consumer experience website Hellopeter. All of them are negative. In reviews posted from February this year – and increasing in May and June – members of the stokvel complained they had not received their promised pay-outs.
In posts on its Facebook page, United African has been trying to reassure members that they will receive their funds.
In a Facebook post in May, it blamed the backlog on load shedding, unexpected backup failures, and delays in receiving funds from its investment accounts.
In the most recent post, dated 7 June, United African said, “we do understand that the delays are worrisome” and “we are continuing to make payments on a daily basis and will continue to do so every day”.
Hi I’m also one of the members I was from them since 2021 it’s a first time they do this it’s look like they planned because they had more specials from last year and I’m sure they got a lot of money I’m also loose 14k wes I’m a domestic worker it’s take me yrs to make that amount
Hi I also invested and was expecting almost R30000 from United stokvel
Am shattered.this was my only savings.
What worries even more is because Darren and his so-called agents are continuing with their bad deed as their phones are daily online doing some recruitment. They have taken laws of this country for granted and think they are smart. It’s so hard to be taken advantage of. Unemployed people were made to deposit their last cents with a hope of great returns, which is not happening. The guy is heartless
Good day I have invested so much money with this people my pay out was due on the 11July 2023 zero communication they just ignore calls and WhatsApp msgs can someone please help us get our money back we have been scammed
I honestly don’t understand how this can be his wife Shirley is the director of six other companies, yet they steal all of our money and leave for the Uk on holiday and there absolutely nothing any one of us can do to recover at least our capital. The South African justice system has failed each one of us. This is so heartbreaking for me as I have lost everything. Sherryl
That’s exactly my point can’t we just get our money that we injected in the business
Hi, I invested years of savings and now its gone! Shame on you, how can we all live in a land that’s a haven for criminals? I earn minimum wage – it will take years to save it all again, in meantime i suffer 🙁 Asset Forfeiture, please take all his possessions and give the ripped something back
I also have 2 investments with them. All my money gone. That money was supposed to pay off my kids school fees and now it’s all gone
I also invested with them R180000 with the promise of tripling it
Payment was due in May and June 2023 I have not received a dime so far
No communication from consultants
I am the one who’s waiting my payout since March, June and July and the worse part they are continuing with debit order. I canceled one of the money that I’ve deposited but still no one gives anything 😢😢😢😢. Please help us to get him to bring back what belong to us.
Hi Nontlahla, I canceled my debit order last month, I’ve been waiting for my payout also. Call your bank and cancel the debit order.
I am so disappointed, and still in disbelief,
I am also waiting on two payouts in October and December
CAN we just receive what’s due to us
Hi Nontlahla, I canceled my debit order last month, I’ve been waiting for my payout also. Call your bank and cancel the debit order.
Good dat
I am totally disgusted with the scam these people are running. The people trusted them with their hard earned money and all they do is transfer people with queries from one person to another.
Im disgusted with this unethical behaviour. They enriched themselves with poor peoples money which they innocently invested for education and clothing for their children. Shame on the entire united african stokvel team. Bunch of con artists.
Praying that justice is done and the people are refunded their initial deposits
I invested my children money that was meant for their education to a sum of 260k.Darren promised to triple everything in 6mths, little did I suspect that he wanted to enrich himself.Is this man above the law?