FINANCIAL ADVISER ORDERED TO REPAY R.1.3 MILLION TO FORMER STUDENT

A Bloemfontein financial adviser in Pretoria South Africa who was also a co – executor of the deceased estate of the mother of a then 20 year old full time architectural student has been ordered to pay the woman R.1.3 million he advised her to invest in the The Villa Property Syndication Scheme.
The villa scheme was marketed and promoted by Sharamax investments which collapsed in 2010 after the investigation findings that its funding model had contravened the Banks Act became public knowledge. This led to new investments dying up and Sharemax was unable to make monthly payments to investors. Tulsie the deceased had instructed in her will that her daughter inheritance be deposited in a trust and the balance only paid out once her daughter had completed her studies. Lombard subsequently recommended Van Staden invest her entire inheritance in The Villa Scheme without providing her any alternative investment options nor discuss the risk involved in the Villa scheme.

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