Too Good to Be True? FSCA Issues Warning About Dubious Investment Scheme

The Financial Sector Conduct Authority (FSCA) has issued a public warning against Mr. Lethabo Molefe, who is reportedly operating an unauthorised investment scheme promising sky-high returns and raising serious red flags in the process.

What Happened?

According to the FSCA, Molefe has been soliciting funds via Telegram, enticing individuals to invest R900 with the promise of receiving R9000 in return. Payments were made into a Capitec Bank account under the name Mr. Thato Rapelego. When contacted by the FSCA, Rapelego denied involvement, claiming someone else used his account.

Neither Molefe nor Rapelego is authorised to provide any financial services in South Africa.

Red Flag Alert: Unrealistic Returns

Let’s be honest, a 900 percent return is more fairy tale than financial strategy. The FSCA warns that “unrealistic returns must be viewed with great suspicion.” When someone promises huge returns with minimal risk or effort, it's almost always a scam.

Legal Status and FSCA Action

The FSCA confirms that neither party is licensed under any financial sector law. The matter is now being referred to the South African Police Service for further investigation.

How to Protect Yourself and Your Clients

The FSCA reminds the public to:

• Only deal with authorised Financial Services Providers (FSPs)

• Check the FSP number matches the actual business name on FSCA’s database

• Confirm what category of advice or service the provider is licensed to offer

• Avoid acting on unsolicited financial advice, especially from social media

You can verify any provider’s legitimacy using these FSCA tools:

Toll-Free: 0800 110 443
Search Authorised FSPs: https://www.fsca.co.za/Fais/Search_FSP.htm
Regulated Entity Lists: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx

Why This Matters

Scams like this not only hurt individuals but undermine trust in the entire financial services industry. As compliance professionals, it’s our job to educate, protect, and stay vigilant.

Let’s continue promoting safe and transparent practices and always, check before you invest.