LISTEN: At least 200 people defrauded by Springs investment schemer

The man was arrested in the Springs area on Friday after victims of the alleged scam flocked to the police station to lay charges.

Jacaranda FM News spoke to one of the people, an unemployed mother who preferred to remain anonymous. 

"I started investing R1100 and the return was R2000, I then took R1100 and reinvested it. I would take my money even if I have R400 or R500 I would invest this, it was not once-off in a month, I would invest more than once in a month as the investments start from R200.

“On Tuesday I was expecting to get R2000 and on the 10th I was gonna get R6000. I was taking and reinvesting, I can say I have now lost roughly R12 000 or R15 000.

"I have children and that money was helping me, since March I have been using the money, and when I cash out. I would buy food at my house because I am not working. You know it was like a salary for me," she said.

She said she became an agent and was recruiting more and more people to join.

The company, Financial Services Centre, had an office in the Springs CBD.

But on Tuesday when the people who invested their money arrived at an empty office. 

The companies pamphlet states that a person can invest any amount from R200 to R20 000

Springs police spokesperson Johannes Ramphora said the man is facing charges of fraud.

They are appealing to anyone who invested their money at the center to come forward so the docket can be completed and he can appear in court.

Ramphora said they expect to make another arrest. 

"People must be very careful of these unregistered financial schemes, they must not involve themselves in those things. When you see that something is too good to be true, for instance, if they say invest R5000 you'll get 10% within two to three weeks time that is not in line with the Financial Act regulations. People must refrain from investing in such companies.”