A former employee of FNB received a 15-year prison sentence for fraud.
In addition, 33-year-old Mzwakhe Khumalo, who worked as a credit validation consultant at the company’s Selby branch in Johannesburg, was sentenced to six years in prison for money-laundering and a year and a half for breaking the Electronic Communications and Transactions Act (ECTA)
He was found guilty of leading an intricate syndicate that defrauded FNB and a German client named Hans-Christian Bremm of nearly R6.4-million.
The Gqeberha Specialised Commercial Crime Court sentenced Khumalo on Tuesday for the crime he committed with the help of 33-year-old Lwando Dingiswayo.
Bremm stayed in Gqeberha at the time the crime was committed.
Dingiswayo was convicted in a separate trial for the crime that occurred between November 2017 and February 2018.
The two used their positions to obtain unauthorised access to Bremm’s accounts.
In December 2017, Dingiswayo modified the contact information linked to Bremm’s account by altering the e-mail address and phone number for in-contact, which allowed unauthorised access to the account.
The court heard that the syndicate replaced an authorised signatory with “John Anthony Mackay”.
Funds moved to Standard Bank account
Nearly R4.8-million was credited to the victim’s seven-day investment account, and in February 2018, the syndicate moved the funds to a cheque account using Mackay’s identity.
They attempted to withdraw R500 000 from the cheque account at the FNB Eloff Street branch in Johannesburg, but the teller became suspicious and stopped them, according to the state.
Advocate Ahmed Rafick, the prosecutor, claimed that Khumalo and his team transferred R1.6-million to a syndicate-managed account at Standard Bank.
Khumalo admitted to breaking the ECTA, but he denied any involvement in money-laundering or fraud.
Rafick emphasised the seriousness of Khumalo’s offences and the necessity of holding him accountable during the sentencing process.
The court agreed, pointing out that Khumalo’s actions showed a clear disdain for the law and highlighted the need for punishment.
Permission to appeal turned down
The National Prosecuting Authority (NPA) successfully rejected the attorney’s request for permission to appeal, upholding the original verdict and sentence.
The NPA claims that additional accomplices have either been found guilty in different trials or are awaiting their court date.
“Fighting financial crimes and defending the economy are the NPA’s two main goals,” said Luxolo Tyali, the spokesperson for the NPA.
“This case shows our commitment to holding people responsible for their acts and guarantees that they will be subject to the full force of the law.”
Will the money be paid back?