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It got here as no shock when the Financial Sector Conduct Authority launched a warning about Mandla Lamba final week. Lamba was unmasked a number of years in the past as a fraudster.
Lamba, who ten years in the past dubbed himself to be South Africa’s youngest billionaire, was revealed as mendacity about his business holdings. When his shady business was unmasked, Lamba disappeared. He additionally served time in jail for culpable murder.
Lamba just lately resurfaced as a businessman with a company that promised “too good to be true” funding returns.
Investors in his “billionaires’ club” had been promised a “guaranteed” earnings of as much as R1 million per thirty days in trade for an funding of simply R150 000.
The funding scheme was additionally endorsed by TV persona Somizi Mhlongo. Lamba offered shares in his electrical car enterprise, Agilitee – supposedly as a part of a particular low cost. He provided shares value R50 000 at R5 000.
In a press release, the monetary watchdog mentioned it acquired data that Lamba is conducting an unregistered business and providing shares to members of the general public on social media and different broadcasting platforms, promising them unrealistic returns.
“The FSCA points out that Mandla Lamba is not authorised to render any financial advice and intermediary services.
FSCA said Lamba was linked to amongst other companies-Mandla Lamba Billionaires Club, Agilitee, Verityhurst Academy, and Verityhurst Capital – and said that it should be noted that the below companies are also not authorised in terms of the FAIS Act.
This is not the first time that Lamba has been running a company that wasn’t registered.
It is alleged that Lamba masterminded several fraudulent deals and online scams through which he made a small fortune to finance his lavish lifestyle.
A number of years ago, he had a company named Godforth Life Assurance, which, among other things, sold funeral policies and insurance to young people. The company was never registered.
In 2011, Lamba appeared in Orlando Magistrate’s Court on charges of fraud for allegedly swindling taxi owners out of hundreds of thousands of rand. The charges related to an alleged scam where Lamba approached taxi owners and promised to help them acquire new taxis. The taxi owners then paid a deposit of R40 000, and when nothing materialised, they laid charges. Lamba also faced a charge of theft involving about R480 000.
The FSCA warned members of the public to always check that an entity or individual 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 cases the place individuals are registered to offer fundamental advisory providers for a low-risk product after which supply providers of a much more advanced and dangerous nature,” it mentioned.