Reports circulated last week regarding a Ponzi scheme that was initiated and run by a First National Bank (FNB) employee had resulted in numerous people losing money. Among the people affected by the scam were FNB customers. According to reports, one woman lost about R900, 000 in the scheme.
Brian O’Neill, CEO of FNB Financial Advisory, stated: “First National Bank (FNB) confirms that an internal investigation into the matter is at an advanced stage.”
Will customers be reimbursed?
When asked whether or not the affected customers would be reimbursed, O’Neill revealed: “Every case is dealt with on individual merit, hence we’ve set up a verification process which requires credible proof such as bank statements or deposit slips.
“This information will help FNB determine the validity of the claim. We’ve already resolved a number of cases through this process.”
According to O’Neill, additional cases are set to be resolved following the submission of the necessary documentation by the bank’s customers.
“In addition, FNB is in contact with the affected clients to remind them to submit the outstanding documents that will allow us to finalise the validation process and help to expedite the process. The validation process is designed to resolve only cases relating to FNB, with credible proof such as bank statements or deposit slips,” said O’Neill.
Furthermore, O’Neill highlighted that the employee implicated in the scheme is no longer in the employ of the bank and was acting outside of their authority. “In line with our zero tolerance approach towards illegal activities, we are pursuing criminal charges against the individual through the relevant law enforcement authorities,” said O’Neill.