Well-known forex trader, Jabulani “Cashflow” Ngcobo, left many people confused about his whereabouts last week after making an unexpected return to Instagram, despite reports that he was sentenced to six years in prison for fraud.
Last week, Cashflow, who had not posted anything on Instagram since the middle of April, shared an Instagram picture of himself ostensibly enjoying a vacation with his girlfriend Tumi Linx at a luxury resort in KZN midlands. The picture was captioned, “With you by my side I can conquer the whole world.”
Cashflow’s return to social media left some of his followers questioning the truthfulness of reports which claimed that the self-proclaimed millionaire was arrested and sentenced to six years in prison on several counts of fraud and contravening the Financial Advisory and Intermediary Services (FAIS) law.
While some of Cashflow’s followers were doubtful that the businessman ever got arrested, others were convinced that he was in prison and had allowed someone else to manage his social media accounts.
According to reliable reports, on the 18th of April, the Durban Specialised Commercial Crimes Court sentenced Cashflow and his business associate Mzabalazo Dlamini to six years in prison on several counts of fraud and contravening section 7(1) of the FAIS Act. Their prosecution was announced by the Financial Sector Conduct Authority (FSCA) on the 7th of May in a press statement.
According to the statement, the two “were referred by the FSCA to the criminal authorities following extensive investigations and adverse findings by the Authority” and the matter had been in court since 2014. They were sentenced to “six years imprisonment, two of which were suspended, and a fine of R200 000 wholly suspended for five years.”
The statement further reads:
The investigations found that the duo had misrepresented themselves as authorised financial services providers (FSPs) that could trade forex on behalf of their clients, when they were not. This is a criminal offense, and the FSCA welcomes the sentence imposed on them, as it sends a clear message against unscrupulous financial entities and scams.
It is reported that both Cashflow and Mzabalazo started serving their sentences in April at Westville prison in Durban. However, they applied for leave to appeal their sentences and were released on R25000 bail each on Tuesday, 14 May 2018. Three days later, Cashflow released a statement around their arrest and fraud charges, where he confirmed that they were indeed sentenced to four years imprisonment and had applied for leave to appeal the sentence.
In his statement, Ngcobo criticised the media for misreporting their business’s violations of the law, claiming that they were being prosecuted for old charges, not new ones as implied in the news. “What is excruciating about this, is that the media is now reporting as if all this is recent, whereas the entity in subject is Cashflow Properties CC, which was liquidated in 2012, meaning that whatever that is being reported pertains to what occurred between 2009 and 2011, consequently making many people to believe that our current business model is illegal and such is not the case. We have never been charged of any fraud case or contravening any act since 2013,” he wrote. He then took a jab at those who celebrated his conviction and concluded by saying, “The celebrations came too early, this case is far from being over. It is not over until Jehovah says it’s over.”
Cashflow first came into the limelight in 2011 after hosting a lavish birthday party in Durban, where he allegedly spent R1m. Since then he and Mzabalazo have been besieged by allegations of fraud, accused of defrauding a number of people of their hard-earned money through their forex trading business.
If the High Court overturns the ruling of the Specialised Commercial Crimes Court, Ngcobo and Dlamini may walk free. However, if the ruling is upheld, they may find themselves back behind bars in the near future.