Drama unfolds as Coin-It and Commex Minerals are raided in KZN

The Financial Sector Conduct Authority (FSCA) yesterday executed a search and seizure warrant – issued by the Dundee Magistrate’s Court – at the business premises of Coin-It Trading and Commex Minerals, as well at the private home of one of the former directors of Coin-It, Northern Natal Courier reports.

In a press release to the Courier, the FSCA said ‘documents and computers were seized for the purpose of determining if there is any evidence that a financial sector law may have been contravened.’ These are now being perused as the investigation continues.

The press release continued: “On August 30, the FSCA launched a formal investigation into the activities of Coinit [sic] Trading and Commex Minerals as these entities were suspected to be operating an investment scheme in contravention of a financial sector law and the possibility that clients’ investments may have been misappropriated.”

The FSCA further wanted to ‘make it clear’ that neither of the companies were licensed to conduct any financial services, nor to receive deposits from the public, even though they ‘falsely claimed to be authorised by the FSCA’.

“The public is once again reminded not to conduct financial services business with an entity that is not licensed by the FSCA and should be extremely cautious when offered unrealistic returns.”

Coin-It spokesperson, Mazana Maphumulo told the Courier on Tuesday it was untrue the Dundee-based companies were not registered with the FCSA. She maintained the same view on Thursday, but by Friday and Saturday had stopped responding to requests for comment. It is not yet known if the search and seizure by the FCSA will affect other businesses owned by those operating Coin-It and Commex Minerals.

Insiders who did not wish to be named blamed rival companies on troubles at Coin-it and COMMEX Minerals.

This is a developing story and will be updated as more information becomes available.