Johannesburg - The Financial Sector Conduct Authority (FSCA) on Tuesday welcomed the sentencing of popular Durban foreign exchange (forex) scammer Jabulani 'Mr Cashflow' Ngcobo, and his partner in crime Mzabalazo Welcome Dlamini, on several counts of fraud.
Ngcobo and Dlamini are known for living a champagne lifestyle, throwing lavish parties and showing off their wealth on Instagram, even though some people were accusing them of being forex scammers and running away with people's monies.
Ngcobo, 33, who has been claiming to be a self-made millionaire as chief executive of Cashflow Pro, last year published a book "Cashflow Naked" sharing his life story and how he made it in forex, and also offering financial tips for disadvantaged communities.
An Angolan businessman Francis Boole laid a charge of fraud against Ngcobo in Johannesburg last year, accusing him of having conned him of R100 000 in a forex trade deal that went wrong.
In 2017, Ngcobo threw a R1 million party after the Randburg Magistrate's Court acquitted him and Dlamini on charges of fraud, theft and money laundering. They topped up the party by taking a trip to French Indian Ocean island Reunion to mark the occasion.
In a statement on Tuesday, the FSCA said it welcomed the successful prosecution and sentencing of Ngcobo and Dlamini on several counts of fraud and contravening section 7(1) of the Financial Advisory and Intermediary Services (FAIS) Act.
Even though the FSCA did not indicate when the duo was sentenced, the matter went to the Specialised Commercial Crimes Court in Durban in 2014.
The court has now sentenced the two to six years, imprisonment, two of which were suspended, and a fine of R200 000 wholly suspended for five years.
The FSCA referred the duo to the criminal authorities following its extensive investigations and adverse findings.
The investigations found that the duo had misrepresented themselves as authorised financial services providers (FSPs) that could trade forex on behalf of their clients, when they were not.
"This is a criminal offence and the FSCA welcomes the sentence imposed on them, as it sends a clear message against unscrupulous financial entities and scams," it said.
"Their conviction is also an example of the co-operation that exists between regulators and law enforcement agencies."
The FSCA reminded consumers who wish to conduct financial services with an institution or person to first check with it whether or not such institution or person is authorised to render financial services, and the exact services they are authorised to provide.