A South African FX trader was sentenced to four years in prison for fraud.

After being found guilty of fraud, a man from South Africa was sentenced to four years in jail. Jabulani “Cashflow” Ngcobo, 33, has also been fined 200,000 South African rand (about £10,600 British pounds or over $14,000 US dollars). The fine has been put on hold for the next five years. The Financial Sector Conduct Authority verified the report (FSCA). Mzabalazo Welcome Dlamini, one of Ngcobo's associates, was also sentenced to the same sentence.

The two were discovered to have lied about their own credentials, claiming to be financial services providers with the necessary authorizations to conduct foreign currency trading for their clients. They did not, though. As a consequence, they were convicted of violating section 7(1) of the Financial Advisory and Intermediary Services (FAIS) Act as well as fraud. Last year, Ngcobo made national headlines after it was revealed that he had allegedly committed fraud against an Angolan worker in Johannesburg. A total of 100,000 Rand was exchanged throughout the transactions, according to police reports at the time.

According to police spokeswoman Granville Meyer, “the complainant indicated that he had a business relationship with someone to undertake FX trading.” “He then created an account with the guy and provided him a PIN number that granted him access to the account and allowed him to deposit the foreign money.” To make sure he didn't lose his money, he handed the guy R100,000.“ Ngcobo allegedly refuted the allegations, claiming that the complainant had refused to take him up on his offer of training, resulting in ”negligence,“ according to Ngcobo. ”They were meant to undergo training so that they could traverse the platform and deposit or withdraw [money] at any time,“ Ngcobo added. ”But they kept postponing... like three times.

“I recall that training was scheduled and they failed to throw, so I'm astonished that they want to blame me now.” I believe they are simply spiteful, pretending as though they are victims in order to tarnish my character. But there's nothing new here; it's just the same old shenanigans,“ he remarked. The FSCA said in a statement released after the successful conviction that it ”welcomes“ the news and that it ”sends a strong message.“ ”The FSCA applauds the term imposed on them since it sends a strong message to unethical financial companies and scammers,“ stated a spokeswoman. ”Their conviction also exemplifies the collaboration between regulators and law enforcement organizations.

“Consumers who seek to conduct financial services with an institution or person should first verify with the FSCA to see if such institution or person is licensed to provide financial services, as well as the specific services they are authorised to offer,” they said. Ngcobo was previously charged with similar offenses in 2017. Those charges were later dropped against him, and he was acquitted.