FSCA investigation into MTI completed, what now?


South Africa’s FInancial Sector Conduct Authority has announced the completion of its Mirror Trading International investigation.

It appears what happens next is now up to Commercial Crime Unit of the National Prosecuting Authority.

Whereas the FSCA previously labeled MTI an “illegal operation“, the conclusion of the investigation is absent in the January 19th press-release.

A January 20th report from MyBroadband states the FSCA ‘found (MTI) was a scam without any trading as promised to investors.’

This is in line with BehindMLM’s October 2019 Mirror Trading International review.

Looking forward, the FSCA advises

the Authority has opened a criminal case with the Commercial Crime Unit and will assist the NPA with its responsibilities.

On the recovery side of things the FSCA is also participating with the various liquidation efforts underway.

Whereas in the US recovery efforts are typically handled as part of a civil case brought by regulators, in South Africa it appears proceedings are separate from regulatory cases.

That said, the FSCA will

share its report with the liquidators appointed by the Master of the High Court.

The FSCA understands that the liquidators are of the view that the funds or assets received by certain members of the public pursuant to investing with MTI, may be unlawful.

The liquidators intend to recover such funds and assets from these investors – a course of action that the FSCA supports.

Anyone who intends to lodge a claim with the liquidators, or who has information that can be of assistance, may contact the liquidators through their websites.

From my point of view, MTI recovery isn’t going to happen until Johann Steynberg and half the Marks/Ward family are thrown in prison.

The scammers behind MTI aren’t going to give up their ill-gotten gains willingly, so it’ll be up to South Africa authorities to hold them accountable.

Whether MTI winds up being another BTC Global South African regulatory disaster remains to be seen.