Newcastle man faces fraud charges

A 29-year-old Newcastle man has been arrested and charged with fraud after being implicated in an alleged multi-million rand investment scheme.

According to Amajuba District SAPS spokesperson Constable Nonjabulo Langa, the suspect, Austin Lee (29), was arrested on February 25.

He is accused of orchestrating a R10-million investment scheme from 2018 to date.

9 cases confirmed as probe continues

Police have confirmed at least nine cases reported in connection with the accused. Investigations are ongoing to determine whether he can be linked to additional cases.

Langa said police are aware of possible victims outside Newcastle and are encouraging them to come forward.

She confirmed that no assets, bank accounts or cryptocurrency accounts have been frozen at this stage, as no guilty verdict has been delivered. However, the Financial Sector Conduct Authority (FSCA) is involved in the investigation process.

Lee has appeared in the Newcastle Magistrate’s Court, where he was granted bail.

Police are also investigating indications that the accused may not have acted alone.

Police warn public to verify investment credentials

Langa urges members of the public to exercise caution when considering unregulated forex or cryptocurrency investment schemes.

“The community should be alert to fraudulent scammers. When something sounds too good to be true, it probably is,” she said.

Before investing, residents are advised to:

• Ensure that the company is registered with the Financial Sector Conduct Authority (FSCA).
• Check that the broker’s licence number and regulator information are available on the official website.
• Verify the broker’s physical address and review credible information such as their history and financial records.
• Look for independent reviews of the broker or company.

“But all in all, before you entrust your money to a young, sleek-looking social media billionaire, be certain that he or she is legitimate,” concluded Langa.