Profit Trading founder arrested

Durban - A Pietermaritzburg businessman who founded alleged Ponzi scheme Profit Trading was arrested by the Special Commercial Crimes Unit (SCCU) on allegations of fraud at a Sandton Hotel on Thursday night.

Angry investors – who claim they have been defrauded – tracked Myles Ndlovu down to the hotel. When he was unable to provide answers about where their money was, they contacted the SCCU.

An investigation last year by the Financial Services Board (FSB) into Profit Trading, which claimed to invest funds in a forex trading robot, found that no trades were ever placed, suggesting that it was an elaborate Ponzi scheme. Investors and shareholders close to the business claim that R52 million has been invested.

City Press first highlighted irregularities around the conduct of the forex platform in an article on May 28, and details of the FSB investigation on June 11.

READ: Reader falls victim to Profit Trading forex scheme

As pressure was increasing from angry investors, Ndlovu called a meeting with select investors at the Sandton hotel on Thursday afternoon. The four investors represent a total of R8 million that had been invested.

An investor at the arrest told City Press that, as Ndlovu had called the meeting, they were prepared to hear him out, but it was clear that “he was telling stories”. A case had already been opened with the SCCU and the investors held Ndlovu at the hotel until the investigating officer arrived. According to the source, Ndlovu refused to answer questions by the investigating officer, which is when the warrant for his arrest was issued.

READ: Investors may lose millions in suspect scheme

An investor who was on his way to the SCCU head office in Johannesburg following the arrest on Friday told City Press that he deposited R500 000 in December 2015 based on a contract that he would receive R1.2 million back a year later.

“My account showed R1.2 million, but I could not get it out. You think interest is added, but when you need it, it is nowhere. The money was used to service his lavish life,” which the investor said included the hosting of a Durban July marquee in 2016 where guests were shuttled in a Rolls-Royce.

Investors relying on the income from their investments were told they could not receive their money due to a “backlog”.

Investors who instigated the Sandton arrest are appealing to other investors to come forward. “My main concern is that he will walk and do the same thing. I want to appeal to every victim to make the case as strong as you can,” an investor told City Press.

Anyone with further information should contact Captain ZB Sithole at the SCCU in central Johannesburg.

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