Social media posts are again doing the rounds that purport to link AfriForum’s chief executive, Kallie Kriel, and singer Steve Hofmeyr to entities called AfriInvest and MutualWealth.
The Financial Sector Conduct Authority says AfriInvest and MutualWealth are soliciting funds for “investment” purposes and promising unrealistic returns of up to R10 000 a day. AfriInvest and MutualWealth claim to trade in cryptocurrency using artificial intelligence.
Profits and from trading cannot be “guaranteed”, and offers of unrealistic returns are an obvious sign that a scam is afoot.
AfriInvest should not be confused with Afrinvest Limited, a capital market holding company based in Nigeria.
AfriInvest and MutualWealth are misusing the names of Hofmeyr and Kriel, as well as the Maroela Media brand, to promote their products. Maroela Media is an online publication owned by the Solidarity Movement, which includes organisations such as AfriForum.
The FSCA said neither AfriInvest nor MutualWealth are authorised to provide financial services to the public in South Africa.
Hofmeyr, Kriel, and Maroela Media have confirmed that they are not affiliated to AfriInvest or MutualWealth.
According to reports by Maroela Media, social media posts falsely linking Hofmeyr, Kriel, and Maroela to investment scams came to its attention in October last year.
Some of the posts were designed to make it appear that Maroela endorsed the scams. One fake news post claimed a farmer had been attacked following the “instant wealth” he achieved by investing. Another claimed that Kriel had been assaulted because of his association with AfriInvest. None of these reports was true.
Impersonation scam: 10X Investments
10X Investments (Pty) Ltd has joined the list of prominent financial services providers to be targeted by impersonation scammers.
The FSCA said fraudsters operating on Telegram and WhatsApp are using the stolen identities of 10X Investments’ staff members to solicit funds by promising large returns from “investing in Bitcoin”.
A Telegram group called “10X MT4 TRADE” is illegally using the name and photograph of 10X Investments’ chief operating officer, Caroline Naylor-Renn, who is in no way associated with the impersonators and their fraudulent activities.
10X Investments (FSP No. 28250) does not have official accounts on Telegram and WhatsApp. It does not use these platforms to promote financial products and services or to engage with prospective clients. Any communication or representation on these platforms is neither authorised nor endorsed by 10X Investments.
Impersonation scam: Prescient Investment Management
Another asset manager, Prescient Investment Management (Pty) Ltd (FSP No. 612), has been the target of a similar impersonation scam.
The FSCA said Prescient received a complaint from a person who has been scammed by an individual who is impersonating one of Prescient’s portfolio managers, Luzuko Nomjana, on WhatsApp.
The scammer is fraudulently using Nomjana’s name and photograph. The scammer uses an Absa bank account with the number 9384035403.
False representation: Compsure
The FSCA has issued an alert that an individual identifying as “Mr Makhanya” is falsely claiming to be a representative of Compsure Insurance Consultants (Pty) Ltd.
It said “Mr Makhanya” is contacting people about forex trading and is using an electronic copy of Compsure’s licence in an attempt to pass himself off as a representative of the insurance brokerage. Compsure is an authorised FSP (No. 47507).
Compsure has confirmed that “Mr Makhanya” is in no way associated with Compsure, nor has Compsure appointed or had any dealings with a “Mr Makhanya”.
Fake website: Viviers Brokers
The public is warned that the website www.viviersbrokers.com is in no way linked to the authorised financial services provider Viviers Brokers CC (FSP No. 2246).
The individuals behind the website are unlawfully using the details of Viviers Brokers to solicit funds from the public. The website purportedly offers retirement annuities and unit trusts, among other products. It also has a platform for trading in currency pairs, commodities, and indices.
Viviers Brokers does not own a website, nor does it use a website to market its services.
The FSCA said the individuals behind the website are not licensed to provide financial products or financial services in South Africa.
Jacques Adriaan Jordaan
The FSCA has warned the public to be cautious when conducting financial services business with a “Mr Jacques Adriaan Jordaan”.
It has come to the Authority’s attention that Jordaan is soliciting funds from members of the public for investment purposes, while promising unrealistic returns.
“Jordaan opens personal trading accounts with various brokers and requests clients to deposit funds into these trading accounts. Jordaan promises his clients that he will trade on their behalf to generate the promised returns. In terms of the complaint received, Jordaan failed to pay the client the expected returns and is now unreachable,” the FSCA said.
The FSCA did not comment on the specifics of Jordaan’s business. However, it pointed out that Jordaan is not authorised to provide financial services to the public in South Africa.
Advisory to the public
The FSCA urges extreme caution when approached with unsolicited investment opportunities, particularly those found on social media. To avoid financial fraud, individuals should always confirm whether a financial service provider is registered by checking the FSCA’s database.
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, because 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:
- Phoning 0800 110 443 (toll-free)
- Conducting an online search for an authorised financial institution by licence category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx
- Conducting an online search for a financial institution that is an authorised FSP: https://www.fsca.co.za/Fais/Search_FSP.htm
