The CEO of the Stringfellow Group, Thomas Stringfellow, handed himself over to police at the Honeydew Police Station in Johannesburg on Thursday morning. His arrest follows allegations that he may have misappropriated hundreds of millions in client funds.
According to his LinkedIn profile, Stringfellow founded Stringfellow Investment Specialists in 2005 after 15 years as a broker, initially within the FirstRand group and then with Sanlam. He was also the MD of Lorna Jane South Africa, which he ran together with his wife Leigh. They managed the local business for the global women’s sportswear brand.
Moneyweb understands that Stringfellow raised a substantial amount of money from clients, purportedly to fund the Lorna Jane business. These clients were promised, and initially received, monthly dividends at a yield of 14% per annum. Earlier this year, however, clients wanting to have their capital paid out to them did not receive payment.