DETROIT – A former FBI special agent has pleaded guilty in Detroit to defrauding investors in a foreign currency trading scheme and agreed to pay more than $576,000 in restitution to victims.
Jeffrey Royer pleaded guilty to one count of wire fraud.
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As part of his plea, court documents revealed that Royer admitted he defrauded multiple investors by falsely representing how their money would be used and by misleading them about the performance of their investments.
Prosecutors said Royer told investors their funds would be used for foreign currency, or forex, and commodity futures trading.
Instead, he admitted diverting some of the money for personal expenses.
Court documents revealed that Royer also falsely assured investors that their principal was protected from losses and that they would receive guaranteed future earnings.
According to court records, after suffering…
THE TUTUKA POWER STATION PROCUREMENT FRAUD (ESKOM)
Date: August 29, 2025 Perpetrator: Jessie Phindile Kubheka (Supplier Director)
Case Description: As part of the ongoing “cleaning up” of Eskom, Jessie Phindile Kubheka was sentenced to 12 years (with 5 years suspended) for defrauding the Tutuka Power Station. The case involved a sophisticated procurement syndicate that exploited Eskom’s emergency repair protocols. Kubheka’s company was contracted to deliver three high-specification containers for the power station. Only one container was ever delivered, and even that single unit failed to meet the required safety and technical specifications.
Despite the lack of delivery, Kubheka issued grossly inflated invoices, defrauding the utility of approximately R2.6 million. The Middelburg Specialised Commercial Crimes Court ordered Kubheka to repay the full amount. This case is significant because it marks a shift in Eskom’s strategy toward “naming and shaming” suppliers and pursuing full asset recovery. It serves as a stark warning to contractors that the 2026 climate of “Zero Tolerance” for state-owned enterprise (SOE) fraud is backed by active judicial enforcement.
Link to Original: Eskom Official – Tutuka Fraud Sentencing