<strong>By: The Financial Sector Conduct Authority (FSCA)</strong>

The Financial Sector Conduct Authority (FSCA) welcomes the 15-year jail sentencing of David Wilmot, owner of Nava Shore Holdings Ltd handed down by the Port Elizabeth Commercial Crime Court found last week. Wilmot was found guilty of defrauding unsuspecting investors to the tune of over R23 million. Wilmot pleaded guilty to 153 counts of fraud, one count of contravening the Exchange Control Act, one count of contravening the Financial Advisory and Intermediary Services Act, and one count of money laundering.

This case stems from an FSCA investigation in 2013 when the authority investigated the affairs of Wilmot and his company and found that Wilmot took funds from clients under the guise that he would trade forex on their behalf. From January 2010 to 16 June 2015, Wilmot had at least four bank accounts belonging to him, his “company”, and relatives, which housed deposited funds that were meant to be traded on the forex markets. Out of the R23.2 million he received from investors, only R2.4 million was transferred to overseas foreign exchange trading accounts. The remaining R20.8 million was used to fund Wilmot’s extravagant lifestyle, all while he reassured investors that their money was safe and increasing in value, and when prompted, produced fake documents as proof.

The FSCA commends the sterling work done by its own investigators and other law enforcement agencies involved in the matter. This conviction is encouraging in the Authority’s efforts of ensuring that customers are treated fairly by the financial sector.

Members of the public are advised to be extremely cautious when dealing with any individual or entity offering financial services. They are reminded to always check that a person/entity is registered with the FSCA to provide Financial Advisory & Intermediary Services and what category of advice it is that the entity is registered to provide. There are instances where persons are registered to provide basic advisory services for a low risk product and then offer services of a far more complex and risky nature.

Consumers who wish to conduct financial services with an institution or person can confirm beforehand with the FSCA on either the toll free number (0800 110 443) or the website <a href="https://www.fsca.co.za/Pages/Default.aspx">www.fsca.co.za</a> as to whether or not such institution or person is authorised to render financial services.