Rustenburg man jailed 15 years for R1.7 million fraud scam

The Specialised Commercial Crimes Court in Rustenburg has sentenced Kabelo Masango, 32, and his company, Creative Ideas Nonstop Trading and Projects (Pty) Ltd, to an effective 15 years in prison for fraud and money laundering.

The court heard that between June 2017 and April 2018, Masango recruited victims, primarily from Dikebu village outside Rustenburg, including close relatives, and persuaded them to invest money with his company on the promise of high returns.

He reportedly visited potential investors at their homes to convince them to invest their savings.

To gain trust, Masango paid interest to the first investor from his personal bank account. Some investors received payments for the first two months, while others received no returns at all. He later failed to honour the agreements, ignored investors’ calls, and disappeared with their funds.

The matter was reported to police, leading to Masango’s arrest on November 28, 2021. Evidence presented during the trial showed that more than R1.7 million was siphoned from unsuspecting victims over the period in question.

He reportedly went to potential investors’ houses to persuade them to invest their savings.

According to the National Prosecuting Authority in the North West, to build the trust of the first investor, Masango paid interest from his personal bank account.

“Some investors received payments over the first two months, while others received no returns at all. He later failed to honour the agreements, ignored investor calls, and vanished with their money,” spokesperson Sivenathi Gunya said.

He said the incident was reported to police, who arrested Masango on November 28, 2021. Over the trial, evidence revealed that more than R1.7 million was stolen from unknowing victims over the specified time period.

Masango and his company pleaded not guilty. He was convicted on 10 counts of fraud, 10 counts of money laundering, and one count of contravening section 7, read with sections 8 and 36, of the Financial Advisory and Intermediary Services Act 37 of 2002.

The court imposed sentences of 15 years’ imprisonment for fraud, 10 years for money laundering, and 10 months for the FAIS Act contravention, ordering that all sentences run concurrently, resulting in an effective sentence of 15 years for both accused.

In aggravation of the sentence, Advocate Nkhetheni Mudau told the court that Masango deliberately defrauded elderly victims, some of whom were known to him or related to him.

The court heard that the accused made false promises of monthly interest payments that were either short-lived or never honoured.