30-year-old man was arrested by Hawks detectives on March 26 in connection with a R2.8 million investment scam and appeared before the Heilbron Magistrates Court the same day.
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A 30-year-old man from Kroonstad in the Free State has been arrested for allegedly conning a Koppies farmer out of a staggering R2.8 million through an elaborate fake gold trading scheme
This fraudulent operation, which spanned several months between September and December 2023, ultimately shattered the victim's hopes of lucrative returns on an investment he believed would secure his financial future.
Directorate for Priority Crime Investigation (Hawks) spokesperson, Lieutenant Colonel Zweli Mohobeleli, said that the victim, believing he was investing in a lucrative opportunity to trade gold in the United States, handed over money in instalments to the alleged scammer, Francois Du Preez.
Du Preez allegedly presented himself as a financial advisor and promised the farmer substantial returns.
However, as months passed with no sign of any returns, suspicions grew from the farmer.
The matter was eventually taken up by detectives from the Serious Commercial Crime Investigation unit in Welkom.
"When Serious Commercial Crime Investigation detectives in Welkom learned about this, they collected evidence and approached the court. On Wednesday, March 26, Du Preez was arrested on a warrant and immediately secured before the Heilbron Magistrates Court," said Mohobeleli.
Du Preez is expected to return to court on March 28, where he will face multiple charges, including fraud, money laundering, and contravention of the Financial Advisory and Intermediary Services Act 37 of 2002.
Meanwwhile, the acting provincial head of the Hawks in the Free State, Brigadier Paulus Mbongo, urged the public to exercise caution and verify the legitimacy of financial advisors before investing.
“It is advisable to use entities and individuals licensed by the Financial Sector Conduct Authority (FSCA),” said Mbongo.
IOL News
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