An East London businessman has taken First National Bank to court over what he claimed was bad investment advice, Dispatch Online reported on Wednesday.
It said John Alexander is demanding R272 232 in damages from FNB’s Southernwood branch and one of their financial advisers, Michael Ries.
Page owns six farms outside East London and is the majority owner of Claremont Farming — one of the Eastern Cape’s biggest abattoirs and livestock sellers.
Testifying in the East London High Court on Tuesday, he labelled Ries ”a blatant liar” who he said misled him into investing in offshore shares in November 2002.
Page (60) claimed that Ries advised him to withdraw R750 000 from his existing FNB money market account and invest in offshore shares.
Ries allegedly told him his money market investment was not to his best advantage and promised him the offshore investment would have better returns.
”I trusted the advice he gave me, because I didn’t know much about investment.”
Page’s claim included R170 000 for the loss of capital, R23 000 for bank commission and other related charges, and R79 232 for interest had his money stayed where it was.
FNB and Ries contended Page was given various investment options and denied ever specifically advising that he invest offshore.
In court papers, they alleged Page was the one who ultimately decided on the offshore investment.
The matter was postponed to a date to be arranged when FNB and Ries will put forward their defence. – Sapa