Spokesman Captain Ndivhuwo Mulamu said Ndlovu is accused of running a R5 million fraud investment scam through which he lured unsuspecting investors to pay R10 000 to R500 000 with the promise of a high commission.
"Ndlovu failed to honour his part of the deal. Investors became suspicious when he cut all communication channels, before absconding with their money. The matter was referred to the Hawks who have been on his trail since the beginning of this year," Mulamu said.
The 34-year-old was arrested at an upmarket Sandton hotel last week after he was tracked down by his angry investors. They refused to let him go until he explained where their money was.
He was arrested on the same day.
The investors pumped money into Ndlovu's company, Profit Trading. Ndlovu is also a celebrated forex trader and had been interviewed on media platforms on investing and forex trading.