Being arrested and out on bail has seemingly done little to break the speed of alleged forex and crypto-currency pyramid scheme mastermind Kgopotso Louis Junior Tshakoane.
With his parents, Louis Jacob and Komane, on the run from the Hawks, this week Junior, in an Instagram video, dared detectives investigating him to attend his Johannesburg investment seminar "so we can teach them how to trade forex for real".
Gauteng Hawks spokesperson Capt Ndivhuwo Mulamu said Junior and his parents, who have eluded the Hawks for 10 months, are under investigation for allegedly stealing R27m from investors between 2015 and 2018 through their Undercover Billionaires scheme.
Louis Jacob is a former Kaizer Chiefs spin doctor.
Junior, who featured on DStv's Vuzu AMP's Rich Kids TV reality show, is out on R70,000 bail and is due to appear in court in Johannesburg on Thursday in connection with fraud and breaching the Banks Act.
His penchant for fast cars, mansions, fancy clothes and luxury falconry holidays in the Middle East is flashed across social media.
While his seminars are not illegal, the Financial Sector Conduct Authority (FSCA) says the Tshakoanes and their businesses are not registered financial services providers (FSPs) and so they are not allowed to invest other people's money.
In the Instagram video, which private investigators from IRS Forensic Investigations discovered on Wednesday night, Junior calls for 100 people to attend his Saturday seminar in Johannesburg free of charge. IRS has been assisting victims of the scheme and the Hawks in their investigation.
Tshakoane says in the recording: "I will be funding your account with $500 [about R7,300]. That's US dollars. We don't do rands. I'm looking for 100 people who want to rock up this weekend at the Forex Millionaires party. Tell the Hawks to come and check me out there. I will be live. They can send some people to listen in and we can teach them how to trade forex for real."
The FSCA said while there was no legislation regulating cryptocurrency investments as it is not regarded as legal tender by the Reserve Bank, the Banks Act prohibits someone from acting or offering to act as a financial services provider unless they have been appointed as a representative of an authorised FSP.
Carla Botes, a financial crime investigator at IRS Forensic Investigations, said they were approached in April 2018 by investors caught up in a supposed forex and cryptocurrency scheme.
"IRS registered a criminal case, which was consolidated with other cases under investigation by the Hawks," she said.
Mulamu said Junior's bail conditions included surrendering his passport, not interfering with witnesses and reporting once a week to the Norkem Park police station. She said the Hawks had been working closely with IRS, "who have been extremely helpful".
While Junior - who refers to himself as the "Prophetic President" on Facebook and praises the "virtues" of controversial preacher Shepherd Bushiri - uses social media to brag about his extravagant lifestyle, many of his investors are destitute.
"He saw himself as a disciple of God," said Tumelo Mashiane, who described himself as one of Junior's top recruiters.
"They called on people to follow the will and advice of God and invest their money with them."
Mashiane, who said he had lost R50,000 in the scheme, said he had recruited dozens of people.
"The investors went crazy with the prospect of how much money they could make. We would encourage people to take out loans even if they couldn't afford to. The people we were talking to were uneducated and didn't know what was going on."
Mashiane said he became suspicious when he saw Facebook pictures of Junior in London and Dubai. "When I tried to withdraw the R3m that was meant to be in my portfolio I discovered I couldn't. When investors started complaining, Kgopotso sent out Facebook notes saying people could only withdraw 50% of their investments. People were told to register for an overseas bank account. That's when I knew this thing was dodgy."
Unemployed Ekurhuleni resident Bafeleletsi Sethabela said he lost R200,000 in the scheme.
"When I went to the seminar people were given 100 Undercover Millionaire currencies. We were told the more we invested, the more we would make."
He said they were shown financial certificates indicating that Junior was allowed to provide financial advice.
Unemployed Ekurhuleni resident Bafeleletsi Sethabela said he lost R200,000 in the Undercover Billionaires scheme
Sethabela said he had invested his family business's money.
He said he knew something was wrong when he couldn't withdraw his investments.
"I kept on asking for my money but was told it was not the right time to disinvest."
Sethabela said he was now struggling to send his children to school.
Junior and his lawyer, Ntsako Baloyi, failed to respond to WhatsApp and e-mailed questions sent to them.
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