By Thapelo Molefe
Members of an alleged international investment scam syndicate will return to the Johannesburg Commercial Crime Court next week Wednesday after being accused of swindling more than R1 billion from victims across four countries through illegal call centre operations, based in Gauteng.
The accused appeared in court this week on charges of contravening the Financial Advisory and Intermediary Services Act following their arrest on Tuesday in Bryanston, Randburg and Centurion by the Hawks.
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The State alleges the suspects operated call centres that provided financial services without being registered as financial advisers or authorised representatives of the Financial Sector Conduct Authority.
Prosecutors said the accused posed as legitimate investment professionals and convinced victims to invest in what were presented as credible financial opportunities.
According to the National Prosecuting Authority (NPA), more than 40 victims from the United States, Australia, New Zealand and the United Kingdom were allegedly defrauded of more than R1 billion.
Some of the funds are believed to have been channelled back into sustaining and expanding the illegal call centre operations.
“The accused are alleged to have operated call centres that provided financial services despite not being registered as required by law,” said NPA Gauteng regional spokesperson Phindi Mjonondwane.
“Victims were misled into believing they were investing in legitimate opportunities.”
Mjonondwane said the investigation was prosecutorially guided and relied heavily on international cooperation.
“This case demonstrates the importance of coordinated efforts between local and international law enforcement agencies in tackling organised financial crime,” she said.
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The investigation involved the Hawks, SAPS Crime Intelligence, the Financial Intelligence Centre, the United Kingdom National Crime Agency and the United States Department of Homeland Security Service.
Authorities in Australia, alongside cyber investigation firms IFW and CyberTrace, also assisted, working closely with South Africa’s private investigation company, IRS.
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The NPA said the case forms part of ongoing efforts to dismantle organised criminal networks that exploit South Africa’s financial and regulatory systems to target victims abroad.
“The complex and deeply embedded scourge of organised crime continues to plague the country,” Mjonondwane said.
“However, law enforcement agencies remain equipped and committed to dealing effectively with such crimes.”
When the accused return to court next week, prosecutors are expected to oppose bail, citing the seriousness of the charges, the amount of money involved and the international reach of the alleged syndicate.
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