The Financial Sector Conduct Authority (FSCA) warns the public to exercise caution when conducting financial services business with Mr Farhad Sanadizadeh (Mr Sanadizadeh) and Bitvestments, which operates as a trading name of SAZMAND Group Ltd, a company registered in the United Kingdom.
Mr Sanadizadeh and Bitvestments are soliciting funds from members of the public by offering unrealistically high returns purportedly derived from trading in Bitcoin. These returns are alleged to be generated through a trading platform developed by Mr Sanadizadeh, which he claims has an 88% success rate.
Without commenting on the business of Bitvestments and Mr. Sanadizadeh, the FSCA confirms that neither Bitvestments nor Mr. Sanadizadeh are authorised in terms of any financial sector law to provide financial services to members of the public. Mr Sanadizadeh and Bitvestments have failed to respond to enquiries from the FSCA.
The public is strongly urged to exercise caution when considering unsolicited investment or trading offers, especially those communicated through social media. The public is urged to act with care when investing their funds. There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters. Illegal operations are sometimes well-disguised as legitimate operations. The public is advised to be on the lookout for certain tell-tale danger signs when approached by persons offering attractive investment opportunities.
These red flags include:
- Unrealistic or exaggerated returns
- Offers made on social media platforms
- Requirements to pay for services upfront
- Requirements to pay more money to have your investments returned
- Requirements to pay for training
- Claims that you must act and pay urgently i.e. creating a sense of urgency
- Vague information about the investment product.
Members of the public may use one of the following methods to confirm whether a service provider or person is authorised to act as an FSP by the FSCA, including to verify their FSP number:
To confirm whether a person or institution is authorised, contact the FSCA on the toll-free number 0800 110 443 or visit https://www.fsca.co.za/Fais/Search_FSP.htm.
Suspicious activities can be reported via the Ethics and Fraud Hotline at 0800 313 626, by email at fsca@behonest.co.za, or online at www.behonest.co.za.