FSCA opens criminal case against MTI, says investigation ‘nearly complete’

Written by Ciaran Ryan. Posted in Journalism

MTI responds that this is another attempt by the FSCA to destroy its business. From Moneyweb.

The FSCA says it has, in the last few days, received complaints that investors were unable to redeem their investments. Image: Shutterstock
The FSCA says it has, in the last few days, received complaints that investors were unable to redeem their investments. Image: Shutterstock

The Financial Sector Conduct Authority (FSCA) says it has opened a criminal case against Mirror Trading International (MTI) and on Thursday issued a statement providing details of its investigation into the company, which it says is nearing completion.

Last month the FSCA conducted a search and seizure raid on the offices of MTI and the homes of some of its executives, after previously warning the public against investing in the company which has been promoting its bitcoin investment scheme with returns of up to 10% a month.

Despite the FSCA warnings, the number of MTI customers appears to be growing. Marketing executive Cheri Marks told Moneyweb that the company now had 280 000 customers worldwide.

“The Authority [FSCA] believes that MTI and its senior management are conducting an illegal operation, misleading clients and have contravened several laws,” says the FSCA statement.

Read:Joining MTI may end in tears (Aug 20)

Get-rich-quick scheme pulls a crowd, despite regulators calling time-out (Aug 28)

Anonymous data dump ‘spills the beans’ on Mirror Trading International (Sep 21)

MTI plans countersuit after FSCA raid on offices and homes of execs (Oct 28)

Marks said she was not aware of any criminal case against MTI.

Head of investigations at the FSCA, Brandon Topham, says the case was opened on November 12 in Stellenbosch (where MTI’s head office is located) under case number 245/11/2020.

The FSCA maintains that MTI is trading illegally and requires a financial services provider licence – which it does not have. MTI argues that its activities fall outside the jurisdiction of the FSCA, though it would be happy to comply with proposed regulations if and when these are introduced.

Ciaran Ryan

The Writer's Room is a curated by Ciaran Ryan, who has written on South African affairs for Sunday Times, Mail & Guardian, Financial Mail, Finweek, Noseweek, The Daily Telegraph, Forbes, USA Today, Acts Online and Lewrockwell.com, among others. In between he manages a gold mining operation in Ghana, and previously worked in Congo. Most of his time is spent in the lovely city of Joburg.