Another FSP targeted in an impersonation scam on social media

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The trend of fraudsters impersonating legitimate and authorised financial services providers on social media continues, with MitonOptimal (Pty) Ltd the latest entity to have its branding purloined.

A group of individuals operating on Telegram are falsely claiming to be agents or representatives of the Cape Town-based discretionary fund manager, the FSCA warned this week.

The scammers are using MitonOptimal’s brand name, logos, and trademark without permission to dupe the public and offer so-called “investment opportunities”.

MitonOptimal does not have a Telegram account, and it is not associated with the impersonators.

This year, the FSCA has warned the public of scams involving the impersonation of Aluma Capital, Anchor Capital, Ashburton, Emperor Asset Management, Fairtree Asset Management, Inn8 Invest, and Julius Baer South Africa.

On a related note, the Authority has told the public not to do financial services business with an entity trading as Tabeza Trading, which is not authorised to render financial advisory or intermediary services.

It said Tabeza Trading was using the branding, company registration number, and FSP number of BI ME (Pty) Ltd, which is not linked in any way with Tabeza Trading.

Entities under investigation

The FSCA has advised the public to act with caution when conducting financial services-related business with the following entities that are under investigation:

Acqumen Fund Limited

The Authority said it received information that Acqumen Fund Limited offered investments to members of the public. Acqumen Fund Limited is not authorised by the FSCA to offer investments in financial products on behalf of South African citizens and/or within South Africa.

Note: Acqumen Fund Limited should not be confused with Acumen Capital (Pty) Ltd or Acumen Financial Consultants, both of which are authorised FSPs.

Branson Capital

The FSCA is investigating Branson Capital (Pty) Ltd and its directors, Brandon (also known as Muruvan Egambaram) Naicker and Abraham “Jason” Pillay, to establish whether they are conducting unregistered financial services business or the business of a bank.

The Authority said it “reasonably suspects” that Branson and Naicker may be conducting unregistered financial services and/or the business of a bank by taking deposits from members of the public. The investigated parties are not authorised to render any financial services in terms of any financial sector laws, and Branson Capital is not registered as a bank in terms of the Banks Act.

With or without a caution from the FSCA, members of the public might find it difficult to conduct any business with Branson Capital. This week, Naicker and Pillay were awaiting the outcome of their bail application following a hearing in the Pinetown Magistrate’s Court, according to a report by Independent Online.

The National Prosecuting Authority in KwaZulu-Natal has told Moonstone that Naicker and Pillay have been charged with fraud involving about R2 million.

The Directorate for Priority Crime Investigation is investigating more than 80 cases of fraud in which members of the public, many of whom were pensioners, lost tens of millions of rands – perhaps as much as R180m.

The State’s case is that Naicker and Pillay were running a Ponzi scheme. Both men have denied the allegation.

Finco World

The FSCA is investigating whether Finco World (Pty) Ltd, registration number 2017/458333/07, also known as SPV 1976 (Pty) Ltd, is conducting unregistered financial services business.

The Authority has received information that Finco World offered investments to members of the public and promised unrealistic returns. Finco World is not authorised to render financial advisory and/or intermediary services in terms of the FAIS Act.

Note: Finco World should not be confused with Finco Risk Solutions (Pty) Ltd or Finco CC, both of which are authorised FSPs.

FX Squad

The FSCA is investigating whether FX Squad and Petrus Rasmus Erasmus (also known as Pierre Erasmus) are conducting unregistered financial services business or the business of a bank.

The investigated parties are not authorised to render financial advisory and/or intermediary services in terms of the FAIS Act, nor are they registered as banks in terms of the Banks Act.

GS Partners

The FSCA is conducting a preliminary investigation into the activities of GS Partners, also known as GSP or Gold Standard Partners.

GS Partners is not licensed to provide financial products or services in South Africa.

The Authority said it was concerned about the “unrealistic returns” offered by GS Partners.

The FSCA provided the following links to warnings relating to GS Partners published by several foreign jurisdictions:

Other warnings

The FSCA also warned the public to be cautious when conducting financial services business with the following entities:

Delos Management

The Authority said it received information that Delos Management offered to trade in forex on behalf of members of the public. Delos Management is not authorised by the FSCA to trade in financial products on behalf of South African citizens.

Kozoo Forex

It has come to the FSCA’s attention that Kozoo Forex offered to trade in forex and other financial instruments on behalf of members of the public. Kozoo FX is not licensed to provide financial products or services.

Check before you invest

The FSCA says members of the public should always check the following:

  • That an entity or individual is authorised by the FSCA to provide financial products and services, including for providing recommendations about how to invest.
  • The category of advice the person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product but advice on far more complex and risky products.
  • That the FSP number used by the entity or individual offering financial services matches the name of the FSP on the FSCA’s database.

You can check whether an entity or person is authorised to provide financial products and services by: