30% monthly return promises collapse, Free State man convicted of fraud
A business owner and his company has been convicted for defrauding investors of R960 000, with orders to repay victims.
The Ladybrand Commercial Crimes Court has convicted a local business owner and his company in connection with a fraudulent investment scheme.
Bloemfontein Courant reports that Free State police spokesperson Fikiswa Matoti confirmed that the accused, Sebotso Lepoqo, and his company MTS General Trading, was found guilty on multiple charges, including fraud, money laundering, and contravening the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002.
“The case comes from complaints lodged by community members who invested approximately R960 000 with MTS General Trading after Sebotso promised them a 30% monthly return. When the promised dividends never materialised, the investors opened criminal cases,” Matoti explained.
She added that Sebotso was convicted on 31 counts of fraud and sentenced to 12 years’ imprisonment, wholly suspended for five years, with an order to repay the R960 000 to the victims. “On 32 counts of contravening the FAIS Act, he received 10 years’ imprisonment or a R1m fine, also wholly suspended for five years. In addition, he was handed a further 10 years’ imprisonment, wholly suspended for five years, on 124 counts of money laundering,” she said.
The company, MTS General Trading, was fined R1m, wholly suspended for five years, for contravening the FAIS Act.
Faith Pontsho Lepoqo, Sebotso’s co-accused, was acquitted on all charges.
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Read original story on www.bloemfonteincourant.co.za
