Authorities allege more than R1 billion was swindled from overseas investors in a coordinated scam. Picture Credit: magazine.csusystem.edu
By Aisha Zardad
Johannesburg — Six alleged investment scammers and 25 call centre operators appeared in the Johannesburg Commercial Crime Court on charges linked to the unlawful provision of financial services, authorities said on Thursday.
The suspects were arrested in a multi-agency operation led by the Directorate for Priority Crime Investigation (DPCI) after investigations into widespread online investment fraud that affected victims in several countries. Operations included searches and arrests in suburbs such as Bryanston, Randburg and Centurion, officials said.
National Prosecuting Authority (NPA) spokesperson Phindi Mjonodwane told journalists the accused are charged under the Financial Advisory and Intermediary Services Act for operating without lawful registration.
“They are facing charges of operating a financial services business without the required registration, as well as associated offences under the FAP Act,” Mjonodwane said outside court.
Authorities allege more than 40 victims from countries including the United States, Australia, New Zealand and the United Kingdom invested funds in schemes presented as legitimate investment opportunities. Prosecutors said the total value of funds lost in the alleged scam exceeds R1 billion.
Police and prosecutors said some of the funds were used to sustain the call centre operations, with agents recruiting new investors through targeted online advertising, high-pressure sales tactics and assurances of unrealistic returns.
Investigators included local and foreign law enforcement partners, with international cooperation from authorities in the United States, United Kingdom and Australia, officials said.
The case was adjourned to 4 February 2026 for bail applications for the six primary accused, and prosecutors said additional court appearances will follow for the 25 call centre staff linked to the scheme.
DPCI sources said the investigation remains ongoing, with detectives tracking further leads and potentially identifying additional suspects overseas.
The scam is part of a broader trend of cross-border financial fraud cases that have drawn increased attention from South African and international authorities, who warn investors to exercise caution with unsolicited investment offers and to verify credentials of financial service providers through regulatory bodies such as the Financial Sector Conduct Authority (FSCA).
