The Financial Sector Conduct Authority (FSCA) announced that a partner at a financial consultancy, tax advice and accountancy firm has been sentenced to seven years in prison, following a “novel approach” which sees fraudsters also take a financial hit.
Gerrit Abraham Coetzee was found guilty of defrauding his financial services clients while he was a partner at Vryburg Finansiele Dienste CC.
He pleaded guilty to 58 counts of fraud and 58 counts of concealing the nature, source, location and movement of more than ZAR12m (£583,908, $773,512, €653,506), which he obtained from clients.
The South African regulator did not state how many clients were affected.
Details
Between 1 January 2012 and 31 July 2018, Coetzee “induced members of the public to deposit money into his personal trading accounts with PSG Wealth Securities and SBG Securities, and into his personal investment account at the Stanlib Money Market Fund”, the FSCA said.
“The misappropriated funds were used to pay home loans, personal loans, insurance and vehicle financing.”
Coetzee was sentenced to 10 years imprisonment, of which three were suspended, subject to the following:
- The accused pays an amount of ZAR20,000 for a period of six years towards a fund to compensate victims;
- The accused surrenders the total amount of an annuity in his favour (at least ZAR1.2m), payable in 2024, to the compensation fund; and
- The accused obtains and maintains a policy on his life to the value of at least ZAR2m, for the benefit of the victims if he passes away.
Investigation
Coetzee’s guilty plea came after a joint investigation by the FSCA, the Commercial Crime Unit (CCU) of the South African Police Service (Saps), and the Serious Commercial Crime Investigation Unit (SCIU) of the National Prosecuting Service of South Africa (NPS).
The FSCA investigation, which resulted in Coetzee being disbarred as a financial services provider (FSP), contributed to the findings of the CCU and the ultimate charges.
It revealed that Coetzee conducted his FSP business as key individual and partner at Vryburg Finansiele Dienste, which was not authorised by the FSCA to render financial services in respect of shares.
The FSCA said: “This novel approach to sentencing is welcomed by the FSCA and we congratulate the NPA on the work and speed with which they worked on this case. The FSCA is encouraged by the efforts of the NPA and CCU.
“The success of the case was possible because of the constructive cooperation between the NPA, Saps and FSCA investigations team.
“This is part of the new approach to enforcement at the FSCA and the authority will continue to support the NPA and the CCU in their efforts to bring criminals to book.”
