During the investigation, it was established that Futcher misappropriated the funds.
Image: File
Andrew Paul Futcher, 62, has been convicted in the Parow Magistrate’s Court for operating what the court found to be a fraudulent investment scheme that defrauded nine victims of more than R9.2 million.
Futcher was found guilty on 17 counts, including theft, forgery, money laundering, and contraventions of the Bank Act and the Financial Advisory and Intermediary Services Act, after promising investors “guaranteed” returns of 10% per month.
The investigation was led by the Directorate for Priority Crime Investigation (Hawks), South Africa’s elite unit tasked with tackling serious commercial crime and high-priority financial fraud.
Warrant Officer Zinzi Hani, spokesperson for the Hawks, said Futcher used his company, Ablaze Trading CC, to solicit funds between 2010 and 2011.
While he traded on the stock market via a registered brokerage, DWT Securities, the majority of the funds were allegedly misappropriated.
“After investors deposited money into the Ablaze Trading Standard Bank account, the accused would then pay back a portion of the victims’ funds using money received from newly invested clients,” Hani said.
The court heard that funds were also used for personal expenditure and to sustain the operation of the scheme.
Futcher has a previous conviction for similar offences dating back to 2004, when he was sentenced to 12 years’ imprisonment, Hani confirmed.
The matter is currently before the court for sentencing, with proceedings postponed to June 2.
robin.francke@iol.co.za
IOL