A 42-year-old chief executive officer is expected to appear in the Palm Ridge Magistrate’s Court today for allegedly defrauding the shareholders millions of rands between March 2019 and May 2021.

It is alleged that the CEO together with another executive official persuaded the shareholders to buy shares that did not exist from a Health Care company since it was going to list its shares on the Standard Board of the London Stock Exchange. The shareholders were further threatened that if they do not pay a certain amount of cash, they will forfeit their existing shares.

They were given bank accounts where the monies will be deposited which was later discovered that were the suspects’ personal bank accounts. Thirty shareholders lost R50 million due to misrepresentation. The matter was reported to the Hawks’ Serious Commercial Crime Investigation team in Johannesburg for investigation.

The suspect was apprehended yesterday and charged with fraud. The investigation is continuing and more arrests are imminent.

Source: South African Police Service