A man from South Africa has been given a four-year prison sentence after he was convicted of fraud.
Jabulani “Cashflow” Ngcobo, who is 33 years old, has also been issued a fine of 200,000 South African rand – which is equivalent to £10,600 or so British pounds or almost $14,000 US dollars. That fine has been suspended for five years.
The news was confirmed by the Financial Sector Conduct Authority (FSCA).
It was also announced that Ngcobo’s associate, Mzabalazo Welcome Dlamini, had received the same punishment.
The pair were found to have lied about their own credentials and claimed that they were financial services providers who had the relevant authorisations to make foreign exchange trading deals for their clients. However, they did not.
As a result, they have been found guilty of breaking section 7(1) of the Financial Advisory and Intermediary Services (FAIS) Act as well as having committed fraud.
Ngcobo gained national attention last year when it was revealed that he had supposedly perpetrated a fraud against a person from Angola who was working in Johannesburg. According to police reports from that time, a sum of 100,000 Rand was transferred during the transactions.
“The complainant alleged that he had a business deal with someone to do forex trading”, said police representative Granville Meyer.
“He then opened an account with the person and got a PIN code that gave the person access to the account so that he can transfer the forex money into it. He gave the person R100000 to ensure he doesn’t lose his deposit.”
Ngcobo supposedly denied the accusations – and said that the complainant in fact failed to take him up on his offer of training, causing what Ngcobo described as “negligence”.
“They were supposed to attend training so that they will be able to navigate the platform and deposit or withdraw [money] any time but they kept postponing … like three times”, Ngcobo said.
“I recall that training was arranged and they didn’t pitch, so I’m surprised today that they want to blame me for their negligence. I think they are just bitter, acting all like victims just to dent my reputation. But there is nothing new, same old tricks”, he added.
In a statement made after the successful conviction, the FSCA said that it “welcomes” the news – and argued that it “sends a clear message”.
“The FSCA welcomes the sentence imposed on them, as it sends a clear message against unscrupulous financial entities and scams”, a spokesperson said.
“Their conviction is also an example of the cooperation that exists between regulators and law enforcement agencies.
“The authority reminds consumers who wish to conduct financial services with an institution or person to first check with the FSCA whether or not such institution or person is authorised to render financial services, and the exact services they are authorised to render”, they added.
Ngcobo faced other charges along the same lines as these back in 2017. However, he was later acquitted of those allegations.
- SEC Charges Filed Against Scammers Show Why It Can Be So Hard To Spot Fraudsters
- MetaTrader MT4 and MT5 Disappear From Apple’s App Store
- The New Crypto Scams To Look Out For After ‘The Merge’
- Online Influencer And $55m Disappear In Social Media Forex Scam
- World’s Largest Corporate Owner of Bitcoin Charged By Attorney General
- Risk Presented By New ‘Clone’ Firm Jupiter Holdings Merits FCA Intervention
Safest Forex Brokers 2022
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||66% of retail CFD accounts lose money Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||67% of CFD traders lose Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#5||72 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008||Global CFD Broker||
Best Trading App Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox