The South African man who promised to turn R300 into R1,000 has been hit with a R300,000 fine and a 20-year debarment

A man named Joy Praise Kgaphola and his company, Datum RS, have been fined R300,000 and debarred for 20 years.

This comes after an investigation by the Financial Sector Conduct Authority (FSCA) found that Kgaphola had solicited R129,000 in investments from the public without authorisation.

Kgaphola and Datum have also been accused of promising unrealistic returns to customers and misappropriating clients’ funds.

The FSCA outlined the details of Kgaphola’s fine and debarment in a press release on 23 October 2026.

The financial sector watchdog began looking into Datum in May 2023 and also warned the public to be cautious when conducting any financial services business with the company.

At the time, the FSCA said it had come to its attention that Datum RS was fraudulently representing itself to be a financial services provider (FSP).

In South Africa, the law strictly requires that any person or entity providing financial advice or related services must be licensed as an Authorised FSP by the FSCA.

Under the Financial Advisory and Intermediary Services (FAIS) Act, no person may act or offer to act as an FSP unless they hold this licence.

This covers providing advice such as recommending financial products, or intermediary services such as buying, selling, or dealing in a product on behalf of a client.

In dealings with clients, Datum RS allegedly claimed to be associated with QuickTrade, an authorised FSP with a valid FSP number.

“QuickTrade has denied any association with Datum RS,” the FSCA said in a press release on 18 May 2023.

“The FSCA wishes to inform the public that Datum RS is not authorised as a FSP to furnish financial advice.” 

The FSCA said it attempted to contact Datum RS for comment, but was unsuccessful.

Datum and Kgaphola fined and debarred

This case started in 2023 and was taken further in 2026, when the FSCA announced that Datum and Kgaphola have been found to be in breach of the FAIS.

“The investigation found that Datum and Mr Kgaphola used Datum’s social media accounts to solicit investments from members of the public,” the regulator said. 

“On these social media accounts, they offered to trade in derivative instruments and crypto assets on behalf of the public.”

Kgaphola, who is the sole director of Datum, allegedly advertised various investment products that promised unrealistic returns within five to eight days.

The FSCA used the example of one package where Kgaphola promised a return of R1,000 within eight days on an initial investment of R300.

“The conduct constituted an offer to render financial services for which authorisation under the FAIS Act was required,” the FSCA said. 

“Datum and Mr Kgaphola were not authorised to offer or to render financial services in the manner that they did.”

The FSCA’s investigation found that Datum clients deposited R129,000 into Kgaphola’s personal bank accounts.

“Contrary to the representations made to clients, Mr Kgaphola did not invest the clients’ funds in derivative instruments,” the regulator said. 

“Mr Kgaphola misappropriated the clients’ funds and used them for personal purchases.”

For breaching the FAIS Act and Regulations, Kgaphola and Datum have been fined R300,000 and debarred for 20 years.

“The FSCA will now formally bring this matter to the attention of the criminal authorities because it seems likely that several offences have been committed,” it said.

“The FSCA cautions the public against engaging with individuals or entities that are operating without proper authorisation.”

“Conducting financial services with unlicensed providers exposes consumers to significant risk, including the potential loss of funds.”