There may soon be some good news for the 632 investors who lost millions of rands through the unapproved investment management company, Mendes Prior.

Financial Services Board (FSB) spokesperson Russel Michaels says all those who invested and lost money with Mendes Prior Europe must contact inspector Charles Bezuidenhout at the Commercial Crime Unit of the South African Police Service in Pretoria.

“Investors must give the inspector their personal particulars, details of funds transferred to Mendes Prior and deposit slips.

“The Taiwanese prosecuting authority is busy with a plea-bargain with the alleged Mendes Prior master brain, Sheridan Cox. ”

“Cox, a British citizen was arrested in Taiwan in connection with the activities of Mendes Prior. In terms of this arrangement Cox might agree to refund investors in order to reduce his sentence.”

Since November 1999, when the activities of Mendes Prior was first exposed by the FSB, the regulator had issued several warnings that Mendes Prior Europe, Mendes Prior Orient and Mendes Prior Offshore were not permitted to solicit business in SA.

“After the South African public was warned about Mendes Prior, the company surfaced elsewhere. “They reared their head in Botswana and Zimbabwe and we asked Interpol to help trace Mendes Prior. We also informed all the members of the International Organisation of Securities Commissions (IOSCO) about the company,” Michaels said.

“According to the FSB’s records, 632 South Africans had invested huge sums of money and about 108 have complained to the FSB. Some of the investors had invested between a few thousand rand and R2m . The total amount of money which South Africans entrusted to Mendes Prior is $27, 847, 657 or at today’s exchange rate, close to R282 096m.

“Once again we appeal to the public to first check with the FSB whether so-called investment managers are approved before investing their money offshore. In fact potential investors should also check whether local investment managers are approved.

“It is sad that even so-called sophisticated investors are caught up in dubious investment schemes. While every investment carries some risk, investors can reduce that chance by checking the bona fides of the investment management company.

“A good place to start is to go the FSB’s website, www.fsb.co.za. Click on departments, choose financial markets, and then click on ‘List of approved investment managers’ or ‘List of approved foreign investment managers to market its business in South Africa.”

Inspector Bezuidenhout may be contacted at telephone and fax number 012 401 3362, or on his cell 083 954 9507.

Manager: Communication & Liaison

Financial Services Board

Friday 24 May 2002