Alleged R1 Billion International Scam Syndicate Members Arrested

Some 23 suspected members of an alleged R1 billion international scam syndicate have appeared in the Johannesburg Commercial Crimes Court on charges of contravention of the Financial Advisory and Intermediary Services Act (FAIS Act).

The suspects were arrested in Gauteng this week, in a multi-agency operation, led by the Directorate for Priority Crime Investigation (DPCI), also known as the Hawks.

“The arrests were the culmination of prosecutorial, internationally coordinated investigations conducted by the DPCI, the South African Police Service Crime Intelligence, the Financial Intelligence Centre, the United Kingdom National Crime Agency, the United States Department of Homeland Security Service, Australian IFW and CyberTrace investigation companies, working closely with South Africa’s private investigation company, IRS,” National Prosecuting Authority (NPA) Gauteng spokesperson Phindi Mjonondwane revealed.

They are alleged to have “operated call centres that provided financial services, despite not being registered as financial advisers or as representatives of the Financial Sector Conduct Authority”.

“The State alleges that more than 40 unsuspecting victims from abroad, including the United States of America, Australia, New Zealand, and the United Kingdom, were scammed into investing more than R1 billion in what they believed to be legitimate investment opportunities.

“It is further alleged that some of these funds were used to sustain the operations of the call centres,” Mjonondwane continued.

The case was postponed to next month for the bail hearing.

“The NPA, working with its partners, continues to make significant strides in tackling and dismantling organised criminal networks.

“The complex and deeply embedded scourge of organised crime continues to plague the country; however, law enforcement agencies remain equipped and committed to dealing effectively with such crimes,” she said. – SAnews.gov.za