A Free State man has been arrested and charged with fraud after allegedly swindling R8 million from people who joined his dubious stokvel.
A FREE State man has been arrested and charged for fraud after allegedly swindling R8 million from people who joined his dubious stokvel.
Free State police spokesperson Captain Christopher Singo said that from 2017 to 2019, the 39-year-old accused convinced people into investing money in his Tshwaranang Community Stokvel, promising them a return on interest of 30% to 50% within 30 days.
“The victims did not receive their money as promised. The victims suffered a total loss of R8 million. The matter was then reported to the Hawks for further investigation,” Singo said.
The man is expected to appear before the Phuthaditjhaba Magistrate’s Court on charges of fraud and contravention of the Financial Advisory and Intermediary Services Act as well as money laundering.
Earlier this month, 46-year-old Adele Senekal was sentenced for fraud and money laundering in Bloemfontein.
Singo said in January 2022, the owner of Mystic Blue Trading received information from Absa bank which had noticed apparent fraudulent activities with regards to specific beneficiaries’ details that did not match the banking profiles. The victim then gave the bank permission to proceed with their internal investigation.
“Preliminary investigation revealed that Senekal was defrauding the company by capturing the beneficiaries’ names where she altered bank accounts to her own, into which payments were made,” he said.
The court sentenced Senekal to 12 years’ direct imprisonment on a charge of fraud, of which four years is suspended for five years. She was also sentenced to eight years’ direct imprisonment on a charge of Contravention of Section 4 of the Prevention of Organised Crime Act (Poca) 121 of 1998 (money laundering) of which five years is suspended for five years. Both the sentences will run concurrently. She will serve eight years direct imprisonment.
