MULTIPLE clients from Estcourt have launched legal action against a local insurance broker after discovering their investments, totalling millions of rand, had disappeared.

The broker, who promised high returns and interest rates, has become unreachable, leaving pensioners and working professionals financially devastated.

The case is currently under police investigation.

Some of the clients told the POST the broker had preyed on them emotionally at the funeral of their loved ones.

“She would come to the funerals and encourage us to take investments for the sake of our families in the event we passed. We were swindled,” alleged the clients.

Geshy Reddy, a financial planner from Estcourt, with 22 years of experience in the industry, said she became suspicious when clients could not explain the details of their investments.

“They did not know how and where their funds were invested. They had no idea who the underlying fund manager was and had not received quarterly statements. Some had their disposable income severely reduced. In some instances, it was down to zero. Some were taking strain because they could not afford the basics like food. Many are too old or sickly to re-enter the job market,” said Reddy.

Reddy said she knew the broker but had never questioned her about her "too good to be true" opportunities, which she had marketed.

“I have been privy to heart-breaking emails and messages where clients had begged her for answers. Initially, a family member of hers replied. The email read that the ‘owner’ was in hospital for ‘extreme medical reasons’.

“It now appears some clients had received communication from her attorney asking that they not contact her as the matter was now subject to a police investigation,” said Reddy.

One client, who was allegedly duped, said she lost her parents last year and their life savings of R500 000 was invested with the financial broker.

The unemployed engineer said she had to move back to KwaZulu-Natal after she lost her job in Port Elizabeth and had no money to support herself.

“My mum passed away in April and my dad in June, last year. My dad worked for 30 hard years at Nestle and retired in October 2023. I invested this money with the broker. At first the broker told me the investment would be with Momentum. I then requested to move my money but she always had an excuse, including I needed to wait three months as it was a new investment. I complied and asked for the money again after three months. She just said she would try,” said the engineer.

She said the broker person pitched up at her church a week later and claimed to be "stressed".

“After church meeting, I found out she had stolen several people's money. I was in total dismay. My boyfriend and I drove past her building the next week and found her nephew moving things out of the office. When we asked him where his aunt was, he said he knew nothing. She knew about my inheritance because she attended both my parents' funerals and got me at my most vulnerable,” said the engineer.

“She had invested the money in her own company. I only came to know when I got a letter from her telling me about the investment. In August 2024, a year after the investment, I received interest twice via cash deposit into my bank account,” she said.

“I had to leave my family home and sell most of my furniture to survive as I was struggling financially. I had no family to fall on and still don't. All I have is my partner and his parents, which I am grateful for, as I would be homeless.

“My plea is that we all get our capital back,” said the upset engineer.

Another client, who is a pensioner, invested his hard earned money with the broker and was receiving interest on his capital amount for survival.

“I found out about the company through word of mouth as they were well-known and established insurance brokers in Estcourt,” said the pensioner.

He invested R650 000 in February 2022.

“There were a lot of people from Estcourt, who had also invested their monies with this company. I received my last interest income in September 2024. However, I'm not sure if my money was invested or not. I just stopped receiving my interest,” said the pensioner.

He said his sons were supporting him.

“I will never recover financially and my health is also deteriorating daily. I had two strokes and I'm losing sight in one eye. The case is under investigation, which is going very slowly. I pray that justice is served and I get my full capital amount back,” said the pensioner.

Another client, who is a retail worker, said she had invested her money with the same broker five years ago.

“From 2020, I received my monthly interest in my bank account. But from October 2024, I did not get a cent. They are a known insurance company,” said the retail worker.

She invested R700 000 in April 2020 and her husband invested R1.3 million last year.

“The broker told me our money was invested in an offshore investment and the interest was excellent. We only came to know in October last year that we had been fooled. We did not receive our interest. We will never recover as this is our hard earned money. For now, my family is helping us financially,” said the devastated woman.

She said they had gone to the Estcourt police station to open a case but was told that individual cases could not be opened.

“This was when all the clients got together and pursued a civil case against the broker. However, like the others, we too have heard nothing back from the police. I pray that justice is served and we get our money back.”

Colonel Robert Netshiunda, a provincial SAPS spokesperson, said Estcourt police were investigating a case of theft. He said an undisclosed amount of money was stolen, allegedly by an insurance broker between September 2024 and October 2024.

“Reports indicate that the victim was promised a payment every month but the suspect failed to keep the promise.”

The POST

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