FNB, ASHBURTON ANDREW MORTON READ MY STORY BEFORE YOU INVEST
In 2010 I invested R 3.3 million with Andrew Morton of the then FNB Private Clients now after a name change Ashburton Investments on behalf of our family trust.
The money came from 2 sources. R 1.2 million from me and R2.1 million lent by FNB.
I was responsible for the interest on the R 2.1 million loan.
There was no risk to the bank as they had tied me to the responsibility of repaying the loan no matter how well the investment performed.
The portfolio was placed with Momentum, a sister company to FNB.
Between the management fees charged and the interest being paid the investment had to grow at a rapid rate in order for the investment to make any financial sense.
The investment initially performed well and made financial sense.
In 2012, I sold another investment and substituted R 2 million in cash for R 2 million of the borrowed funds. I returned R 2 million of the R 2.1 million borrowed from FNB.
The investment continued until September 2013.
I then phoned Joshua Russouw, who’s name was on my investment statement. I asked Joshua to sell all the shares and to place all the funds in to a simple interest call account.
He quoted me 5 % interest and I agreed to this.
I then took a sailing vocation. On my return in January 2014 I noticed that my investment had not grown. I called Joshua Russouw and discussed it with him. He stated that because the shares had been sold, that tax had to be paid and my investment was receiving 5 % interest as quoted, but the tax had off-set the growth. I accepted his explanation.
A few more months go by and a similar call was made to Joshua, where he confirmed that the interest rate and gone up a little.
I was not happy with Joshua’s response, so I contacted Andrew Morton’s office from 2010. I was told that he had left that office and Tarryn Smith-Rainsford had taken his place.
Tarryn then asked me to sign a brokers note as there was no responsible broker attached to my investment. "WARNING WARNING, SOMETHING IS WRONG", my sixth sense is telling me.
I quote two extracts from Tarryn’s emails.
“I can confirm that you are earning a rate of 5.95% (nominal) on the cash. What is affecting your return however, is the fact that the funds are housed within a Momentum endowment structure and there would be fees and taxes being deducted.
It is obviously not ideal for cash to be housed in such a structure as the returns do not warrant the costs. Should your intention not be to enter the market anytime soon, you should at least consider a conservative / moderate risk fund to house the funds in the meantime. Please let me know if you would like me to provide you with some options.”
“ As portfolio …….. is housed inside a Momentum Endowment Option which has a 5 year term (ending 1 August 2015), you will not be able to redeem the entire investment amount. You are entitled to a partial surrender and we have requested that Momentum advise us on this amount. It will be in the region of 80% of the current value. The balance can be liquidated at the end of the investment term.”
At no stage did Andrew Morton and myself discuss a term to this investment. If he had suggested this money had been tied up for a term with me contracted to paying the bank back, I would've not involved myself in this deal.
I asked Tarryn to send me documents proving that I had agreed to a five year investment. She sent me an unsigned brochure and a signed Flexible Endowment Document, which does not specify a fixed term investment.
I attempted to get hold of Andrew Morton on both his email address on record and cell phone number, to no avail.
I then took my documentation to an independent financial consultant who asked me to show him a "needs assessment document" and a "proposal document" that Andrew should have done before selling me the investment.
I attempted to contact Andrew Morton again. After unsuccessfully trying I called my FNB Bank account manager and informed him that if Andrew Morton refused to contact me, that I would have to go to the banking Banking OMBUD. The phone rang within the hour from Andrew Morton.
Andrew Morton undertook to get the needs assessment and the proposal for me. These documents where never forthcoming. Instead Andrew stated that his computer had crashed and he had lost the documentation.
On the document marked Investment Port Folio.
FICA declaration:
Andrew Morton has ticked the following block.
“I have…………. ,I further confirm that I have stored all the verification documents in terms of section22 of the same act”
Unfortunately for Andrew Morton I had saved all his emails from 2010 and returned them to him and asked him to point out which one contained the 2 missing documents. Of course, he could not. I am a retired service station owner and am well -heeled in dealing with lying corporate scum in the oil industry. “The pen is mightier than the sword” Lying bankers are puppies compared to the oil industry.
In 2015 I had no choice, but to go to the OMBUD with my complaint that had now reached a value of +_ R 1200 000 + interest + legal fees.
In 2016 after many letters between the various parties the OMDUD finally ruled in my favour and the OMBUD requested FNB to settle. The OMBUD did not specify an amount. FNB ignored their request.
Finally FNB offered R 151 000 as full and final settlement.
The offer was declined by me and the appeal process will now follow.
In 2014 when I asked for my 2 investments to be paid over to my personal bank account I had the equivalent of $ 520 000 invested with the FNB group. These funds were trackable and formed part of a document that had been handled by my American attorney. The American system is extremely sensitive to illegal cash being invested into their EB 5 investment program. I had planned to move my South African investment to a US based investment in exchange for 4 Green Cards for the van Wyk family.
The EB 5 investment rules are that the spouse and minor children qualify for green cards, but not children older than 21.
The delays caused by FNB now means that my son is excluded from the green card program and it will take another $ 500 000 + $ 100 000 to achieve the extra card. $ 600 000 that we as a family do not have.
The CEO of Andrew Morton’s division is Brian O’Neill
He is refusing to answer the following questions:
“1. I would like you to supply the missing documentation or to write an acceptable apology.
2. I would like an explanation as to why Joshua Russow left the call account funds in the managed portfolio? The
interest was +_R 17 000 a month and the management fee was +_
R 15 000 per month.
3. Was Joshua Russow qualified to make the changes that I asked
for?
4. We have asked repeatedly for the recorded conversation between
Joshua Russow and myself in October 2013 and it is not
forthcoming. Why?
5. Why was my multi-million investment left broker less for a period of time?
6. On what grounds, do you think that your institution should not be held liable for the funds that have been claimed?
7. Would you be happy if your personal investments were handled like mine were?
8. Do you think it is fair of me to take my story to the press?
9. I have won the first round at the Ombud. They asked your
institution to settle. Why did you not?”
I would like the public to comment on this blog. If you have been caught by Andrew Morton and or FNB don’t hesitate to report them to the OMBUD and to the FSB (Financial Services Board). Don’t rely on one method to sort your problem. You will have to drive the process.
Would the legal people that read this blog please comment on when or if Andrew Morton Crossed the line from a civil offense to criminal offense when he falsely declared the safe storage of the documentation?
I find it amazing how I have gone from being a great customer of 35 years to being treated like the enemy after the FNB staff have made multiple errors. They are clearly too big to understand my needs as a customer. I suggest anyone considering investing money to avoid this bank. Learn from my experience find a smaller institution that follows the rules. If you have had a bad experience please name and shame the individuals. Don't rely on the justice system, they are kind of broken like all the parastatals.If you are from a first world country be very careful in Africa.
Recent Posts
Archive
Tags