$100k fraud: American businessmen berate South African authorities for negligence, connivance

When Ivorian American businessman, Prosper Kouassi and an American associate who chose to be anonymous for this story invested $50,000 each in financial instruments offered by two government-registered firms in South Africa in 2021, it never crossed their mind that they could be victims of fraud.

But after two years of spirited efforts to recoup their funds from the firms and their representatives failed, the complainants said they have been more disappointed by the lackadaisical attitude of South African governmental organizations and officials whose duty it is to prevent crime and, when it happens, investigate, arrest and prosecute offenders.

As earlier reported by The Herald, Kouassi through his company, Prosperity Soul Transportation LLC, and his anonymous associate whose firm shall be called Company B invested the funds separately in several financial instruments offered by Mmina Tshipi (Quantum Oil // OR John Issachar Carriers) represented by Johannes J. Jacobs and Barista’s Coffee Holdings (Pty) Limited represented by Wim Fourie and Madelin Fourie.

The Herald confirmed that the one-year tenure investments were backed by contracts agreed upon by the parties with agreed potential earnings of the investors running into millions of dollars.

Kouassi and associate disclosed to this newspaper that not only did they not receive their contractual earnings but the dodgy Johannes Jacobs (who is the respondent in a fraud-related civil case involving another investor), Wim Fourie and Madelin Fourie also reneged on a $300,000 sum they proposed as final settlement, sending a phony wire transfer receipt for a transaction that was never completed.

Kouassi and associate further told this newspaper that the lid on the fraudulent operations orchestrated by Jacobs and the Fouries blew when they could not provide their license to operate as Financial Service Providers (FSPs) in South Africa, an action which contravened Section 8 of the Financial Advisory and Intermediary Services (FAIS) Act 2002.

Trove of email correspondences sighted by this newspaper confirmed that the Office of the President of South Africa; the South Africa Police Service (SAPS); Financial Sector Conduct Authority (FSCA) and South African Reserve (RES) Bank, the financial regulators in the country; the First National Bank (FNB), bankers to Jacobs and the Fouries; among others have been contacted by Kouassi and associate in their quest for justice.

Kouassi and associate confirmed that only Rahima Shaik, an official in the Deputy President’s office, has showed any real desire to push for justice on their behalf, but her efforts are being truncated by unhelpful and apparently conniving officials in the South African Police Service (SAPS), South African Reserve (RES) Bank, and First National Bank (FNB).

In an email dated December 27, 2021, an official with FNB, Virgil Arthur McLellan told the complainants that the bank investigated as requested (without disclosing its findings) but advised them to report “to the South African Police Services (SAPS) for the criminal investigation to be initiated insofar as the monies are concerned”.

The Herald confirmed that Kouassi’s associate filed a criminal complaint via email against Johannes J. Jacobs with the South African Police Service on June 14, 2022.

In an email dated June 24, 2022, and addressed to the Palmietfontein Station Commander in the Eastern Cape through the email address provided on the SAPS website, Kouassi’s associate said, “We have been trying to get our money back for over a year. An FNB investigation is concluded and all we need is for SAPS to initiate the section 205 Subpoena issued in terms of the Criminal Procedures Act so FNB can issue them the report. Please hand this off to an investigator.”

He told this newspaper that there was no response from the station commander.

Two months later, on August 29, 2022, Kouassi’s associate, who appeared frustrated at the lack of seriousness from the police service, sent a reminder about the criminal complaint.

The email read, “I continue to be baffled by your lack of action about the criminal complaint I have attempted to get you to acknowledge for close to a year now.

“I do not understand how someone in your position of Authority just thinks that ignoring a US citizen filing a complaint is justified.

“These two entities stole over $100,000 US dollars from us and yet after 14 months and many letters written to your office we are still chasing these funds.

“The Attorney connected to these clients simply runs interference for them and we are getting nowhere.

“We have a fraud investigation report from FNB; we have two government agencies attesting to the fraud. We have affidavits from the people listed in the Instruments that the Instruments are fake, and we have a fake wire for a $300,000 settlement that was confirmed by FNB that it does not exist.

“I am not sure what else I can provide you with to assign an investigator to review this complaint.

“I am requesting that a Criminal complaint be filed against these individuals and possibly their Attorney depending on his involvement. All I ask is for an investigation.”

Kouassi’s associate told this newspaper that the police service simply ignored the email.

According to the complainants, officials at the other South African government agencies have also either taken this approach or have been stonewalling in a manner that reeked of disinterest, negligence or outright connivance.

The complainants identified some of the officials as Financial Surveillance Investigator, South African Reserve Bank, Eben Minnie; Katleho Pule of FSCA, among others.