File photo Feb 2020
A Gqeberha investment company whose owners are accused of duping more than R17-million from its clients was not registered as a financial service provider (FSP).
This is according to a state witness who testified in the trial of 33-year-old Michael Rathbone and his 31-year-old partner, Leon Lewitton at the Specialised Commercial Crimes Court on Monday.
The pair were arrested by the Hawks in November 2019, for illegally operating their investment company known as Helping Hands Investment between June 2016 and July 2019.
According to the Hawks, they allegedly recruited investors from Gqeberha and surrounding areas promising a 15 -45% return per annum.
The State's witness, Bhekithemba Ncgoba, who was a Specialist Analyst with the Financial Advisory & Intermediary Services (FAIS), investigated the matter following a complaint from a whistleblower platform in August 2017.
He said the anonymous complaint questioned whether Helping Hands investment was registered to be a Financial Service Provider.
Ngcobo told the court that his investigation revealed that an FSP licence number, that he found on their website did not belong to them.
The court further heard that Ngcobo then contacted the company, called Quick Trade, to who the number was registered, and they confirmed that they had no relation to Helping Hands Investment.
He said following further investigation they later opened a criminal case with the police in February 2018.
During a heated cross-examination, prominent defence Advocate, Alwyn Griebenow, argued that Rathbone and Lewitton did contact the relevant regulatory body.
Griebenow said they were given the go-ahead to operate following correspondence with a former FAIS employee, who signed off on a draft of one of their contracts for prospective investors.
The duo faces over 190 charges which include fraud and theft and is currently out on bail of R50 000 each.
The trial continues.
