A 62-year-old man from Cape Town was sentenced to 15 years direct imprisonment at the Parow Magistrate’s Court this week for operating a “get rich quick” Ponzi scheme and defrauding nine people out of their hard-earned money.

Andrew Paul Futcher (62) was sentenced on Tuesday 2 June.

Warrant Officer Zinzi Hani, Hawks spokesperson, said Futcher defrauded investors by making extraordinary guarantees about investment returns and then used the money for extravagant purchases and to pay off other victims.

It is reported that he engaged in an investment fraud scheme from 2010 through 2011 under the name of Ablaze Trading CC. He solicited investments from the public to the amount of over R9,2 million, said Hani. He promised and guaranteed the investors a monthly return of 10 % per month.

Futcher was trading on the stock market via registered brokerage company DWT Securities, said Hani.

Modus operandi

“The accused, after receiving the funds from investors, failed to invest the funds as promised with DWT on the stock market. After the investor made investments in the Ablaze Trading Standard Bank account, the accused would then pay back a portion of the victims’ money with money received from newly duped victims. The accused defrauded approximately nine victims of over R9,2 million,” Hani said.

In April this year Futcher was convicted of theft amounting to R9 251 000, money laundering, the contravention of the Bank Act, the contravention of the Financial Advisory and Intermediary Services Act ( FAIS Act) 37 of 2002, forgery and uttering.

Hani said it is further reported that Futcher was already sentenced for similar offences in April 2004 to 12 years imprisonment.

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