The Financial Sector Conduct Authority (FSCA) last week welcomed the sentencing of Port Elizabeth foreign exchange (forex) trader David Wilmot, who stole R23 million from clients under the guise that he would trade forex on their behalf.
Last week, The Port Elizabeth Commercial Crime Court sentenced the 47-year-old trader to 15-years in jail.
As reported by Fin24, Wilmot pleaded guilty to 153 counts of fraud, one count of contravening the Financial Advisory and Intermediary Services Act, one count of contravening the Exchange Control Act and one count of money laundering.
The FSCA started investing the PE forex trader who had a company called Nava Shore Holdings in 2013. The regulator discovered that he took money from clients under the disguise that he will trade forex on their behalf.
According to the publication, Wilmot received R23.2m from investors, but 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,” FSCA said in a statement.
Earlier this year, The Herald reported that Wilmot had used clients’ money to send his children to a prestigious private school and finance a fancy car for his wife.
FSCA reminded South Africans to always check that a person or entity is registered with the FSCA to provide financial advisory and 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.”
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