In another twist involving the public protector’s office‚ the Minister of Co-operative Governance an.
Calls from investors flooded in yesterday following Sowetan's revelation of readers buying unlisted shares of Ubambo Investment Holdings.
Ubambo chairman Gary Harlow invited shareholders to call the company with their queries.
He said: "I want to urge the public to take extreme caution when buying from these private equity brokers."
Readers who had invested as much as R180000 each from as far back as 2004 in Ubambo said they were scammed out of their money by unscrupulous brokers.
Dave Connon, a director and financial advisor at Dave Connon and Associates, said people who were conned out of their money in private equity deals were often pressured into the deals before they could conduct thorough research.
Connon said: "I have never recommended any of my clients into private equity deals - they are just too hairy.
"A lot of these companies that sell these shares aren't even licensed as certified financial planners."
Complainants questioned the hard sell tactic employed by at least three companies - Buyers Equity Guide (Johannesburg), Silver Seed Capital and Blue Platinum Investments (Cape town) - which had recently applied for registration on the Financial Services Board after being rejected in 2005.
Investors were promised ridiculous returns on investments and were told that the key share in Ubambo Holdings, Cell C, would be listing on the JSE.
Connon said that if a broker promises returns that are too good to be true, then they most likely are.
For further queries call Ubambo chairman Gary Harlow on: (011) 612 3166, and to file a complaint against an intermediary, call the Financial Services Board on: (012) 428 4000