Who is behind the ShareMax debacle?
ShareMax??
I see ShareMax is in the news again.
According to a newspaper article on Fin24.com today ShareMax could not pay some of their investors at the end of August. This came after the reserve bank gave notice that they way ShareMax collected money from Investors was unlawful.
Many pensioners now face loosing all their money. Some of them relied on their ShareMax interest as only income.
Something smells fishy and my question is why does the reserve bank now all of the sudden find a problem with the way ShareMax has been collecting money from Investors?
Sharemax has been doing this for 11 years. They built up a property portfolio of more than R5 billion and last month was the first month in the company’s history that they could not pay Investors.
I understand that the whole law interpretation issue behind the Sharemax controversy is grey area and not black on white.
I have seen this pattern of events with other investment and syndication companies in the past as well. They have a brilliant concept, they start to do well, they offer people real investment opportunities with real returns, they become a thread to the South African big banks and insurance companies, the banks and insurance companies pay the newspaper reporters to publish some sensational newspaper reports to scare the investors and in the end the banks manage to kill their competition..
The question remains; Is there really a problem with ShareMax’s way of doing business or did they became too much of competition for the major banks and the insurance companies of this country?
My argument remains that ShareMax has been collecting money from Investors for 11 years, the reserve bank knew all about it for eleven years, why does it become an issue only now?
Please note that above is my personal opinion based on my gut feeling
For those who do not know, ShareMax is one of South Africa’s most prominent property syndication companies. Over the past 11 years they helped thousands of investors to invest in shopping centres by means of property syndications. They bought, revamped and in the process saved many battling or poor performing shopping centres. They then turned it around to become viable centres again. That way they also created jobs for thousands.
The returns investors received from ShareMax was far better than you can ever dream of receiving from a bank.
Regular readers would know that i just hate banks. They are the guys who steal from the poor pensioners. Banks are the guys who take money from pensioners and pay them 5% per year interest on their money. They then borrow you the money at 16% per year, as soon as you repay the first premium they borrow that to another person, they repeat this process up to 5 times over. Thus they pay the poor pensioners 5% per year for their money while the bank makes 50% or more per year with their money. For this behavior the banks in South Africa are rewarded by being protected by the South African banking laws which are there to “protect the public” We all know that is bull, the banking laws in this country is there to protect the monopoly of the big banks.
In my opinion this is a typical situation where the bad guys are killing the good guys just because the bad guys has more power than the good guys.
Wealth Creation | Pieter | September 6, 2010
For all of those who would like their money back please, visit the website http://www.sharemaxassist.co.za – these people are busy with the case
I am tired of their excuses. I want my money back. The Broker in Delmas Andre Bruyes Brokers told my mother when she purchased these shares it will pay out in 5 years time. It is in my name as inherritance. From R180000-00 I would at least like to know what my options regarding this matter is Sharmax or the Broker never give me any reply. If the attorney handling this matter would please put their details on the web for us to contact them so we can get some kind of feed back.
My mother left me the shares to the Value or R189000-00 in two of the properties. I have been trying to get my money from Sharemax and they say it should be sold on the JSE and so on. To date I have left my details with another Broker who is supposed to help us sell it for the best “price” but still had no response from him. 3 Years ago my broker in Delmas Mpumalanga Andre Bruyens Brokers took my original Shares Certivicates because I needed the Money and wanted to have my shares sold. Since then he never returned any phone calls and sharemax said my shares would pay out in 5 years from the time it was invested. This is my inherritance as my mother passed away 3 years ago. Still my monthly income on these have dropped from R1450-00 per month to R500-00 per month or less. This money I used to pay my sons school fees and every month it changes up and down. I am fed up with these people and just want my money back even if I have to lose half of it. Something is better than nothing. The best part is that my mother trusted this broker from Delmas as a refrence from a friend. She did not want to give it to me or my brother just yet, because she did not want us to spend it on nonsence. Now she will turn in her grave to see her hard working money being shoved up some-ones behind to put it mildly. This is unfair to the old people who trust these savage vultures. They should rot in jail. I would like to get hold of the lawyers dealing with the case. Please contact me if possible. sarie-gardens@telkomsa.net cell number 0723283898
Let all rot in jail. They having been doing this for long time. See Durant Botha on Google.
Sharemax is a scam – pure financials – they dot not have the funds to service the agreements with their clients. No bank or institution stopped their liquidity and cash ratios – Here is what happened – They merely scooped money “marketing and funds” while paying current investors with new investors money with the HOPE that the current property market will suddenly have a another boom period … thereby increasing the “apparent” value of the property giving them more opportunity to “buy” more property and “sell” the property to new investors – in tern pay old investors with the new investor money – All the external advisors or financial advisors out there sold Sharemax because of the ridiculously high commission structure – apparently 6 – 10 % – WTF ….. How is it even possible to make the commission back on property rental and growth in the first year, never mind pay interest. DID NOBODY SEEE THIS COMING ???? Issue here is the time has finally come to accept responsibility for the failed model – no one wants to buy more “shares” therefore Share”wax” has no money for interest payments. In short they used up the “marketing funds” and all other avenues and are basically no hoping that a very “suspicious” looking share deal will bail out the Directors – I am almost 100 % sure that the new company is in on the deal and will take the fall after the share price crashes by 80 % (10 c to the rand – any takers ???). Let’s hope the FSB and other SA regulatory institutions take action before more elderly and innocent people loose money from these sharks. House of cars my “ass” – Pyramid from the start – I tell ya !!!!!!!!!!!