Is the Net tightening on Supposed Ponzi Scheme Coin It?

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Coin It & Commex Minerals Scheme on a Knifes Edge

Coin It promised investors as much as a 200% return in just 3 years. This is an incredibly high return offering and for many raise a red flag warning them of danger. Others however have thrown bundles of cash at what the Financial Sector Conduct Authority (FSCA) warns may well be a Ponzi Scheme.

Coin It and sister company Commex have been getting increased attention from the FSCA who say that the people running the operation are not registered to offer investment advice and that there may be no real product or service behind the flashy promises of high returns.

Coin It and Commex Minerals, who share a head office in Dundee KZN have however been advertising in major newspapers offering huge returns reselling peoples purchases in dolomite, manganese, coal and iron.

Troubled investors report that the firms have been changing bank details regularly and that payouts have slowed down and then sometimes even dried up.

Now investors are getting letters from Coin It Trading saying that their contracts are being moved to other associated companies (details here are sparse). This may be a distraction technique meant to stall the ultimate fall of the scheme.

The Hawks have been investigating and the Asset Forfeiture Unit called in to start looking over the banking info of the founders. At the beginning of this month they “swooped” (hawks..get it?) down on Coin Its premises and the home of one of the former directors seizing computers, documents and more.

It seems that the jig may be up and that the scheme may now be in its end phase.

When They Promise Too Much

If you want to invest and see promises of high returns beyond that offered everywhere else you should exercise caution! If it seems too good to be true then it probably is a scam. Beware!