Picture: Cashflow Ngcobo/Instagram
The Financial Sector Conduct Authority (FSCA) has confirmed the successful conviction of 33-year-old Jabulani ‘Cashflow’ Ngcobo and his associate Mzabalazo Welcome Dlamini on several counts of fraud and contravening section 7(1) of the Financial Advisory and Intermediary Services (FAIS) Act.
The Specialised Commercial Crimes Court in Durban sentenced the two to six years’ imprisonment, two of which were suspended, and a fine of R200,000, wholly suspended for five years.
Investigations found that the two had misrepresented themselves as authorised financial services providers (FSPs) that could trade forex on behalf of their clients, said the FSCA.
The FSCA said in a statement: “The FSCA welcomes the sentence imposed on them, as it sends a clear message against unscrupulous financial entities and scams.
“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.”
Ngcobo made headlines last year after reports claiming he had reportedly conned an Angolan national based in Sandton, Joburg, out of money in a foreign exchange (forex) trade deal that went wrong.
Francis Boole laid a charge of fraud against Ngcobo at the Sandton police station in May last year.
Police spokesman Granville Meyer told The Sowetan at the time: “The complainant alleged that he had a business deal with someone to do forex trading. 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 reportedly denied the allegation at the time
“They [Boole and a friend] 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. 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,” Ngcobo was quoted as saying.
(Compiled by Vhahangwele Nemakonde)
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