FSCA welcomes Cashflow conviction
The FSCA has welcomed the successful prosecution and sentencing of Jabulani “Cashflow” Ngcobo and Mzabalazo Welcome Dlamini on several counts of fraud and contravening section 7(1) of the Financial Advisory and Intermediary Services (FAIS) Act.
The matter has been heard before the courts since 2014, and the Specialised Commercial Crimes Court in Durban 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 duo was referred by the FSCA to the criminal authorities following extensive investigations and adverse findings by the Authority. 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,” the FSCA said in a statement on 7 May 2019.
“This is a criminal offense, and 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 co-operation that exists between regulators and law enforcement agencies,” it added.