Alleged bogus broker appears in court

A broker accused of keeping millions of rands for himself which he was supposed to have invested on the JSE, appeared in a Cape Town court.

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Cape Town - A broker accused of keeping millions of rands for himself which he was supposed to have invested for clients in shares on the Johannesburg Stock Exchange (JSE), appeared in a Cape Town court on Wednesday.

Martin Smuts, no age given, of Melkbosstrand, appeared in the Specialised Commercial Crime Court in Bellville before magistrate Sabrina Sonnenberg.

Senior State prosecutor Advocate Simone Liedeman told the court she had received an email from the National Prosecuting Authority (NPA) in Pretoria, saying that defence attorney Vera Kruger was to meet the NPA next month, to discuss the case. At the prosecutor's request, the case was postponed to August 30, for the outcome of the meeting.

The State alleges that Smuts developed a scheme to obtain money for his own personal benefit, on the false pretence that he was an investment broker.

It is alleged that he duped nine victims into “investing” a total of R5 350 000 in shares on the JSE, but kept the money for himself. It is alleged that he falsely informed victims that he operated an investment scheme online, by means of software used for analysing and monitoring trends.

He falsely informed victims that he previously worked for an unnamed financial institution, but resigned in order to start his own investment business.

It is alleged that he was not an authorised investment broker and that his actions violated the Banks Act, as well as the Financial Advisory and Intermediary Services Act (FAISA).

He faces 24 fraud charges, one of violating the Banks Act and one of contravening Faisa. He was warned to appear in court again on August 30.

African News Agency