The National Prosecuting Authority (NPA)’s Asset Forfeiture Unit has seized R4.4 million from 24 bank accounts. It says some Chinese nationals allegedly used the bank accounts to run a fraudulent social media investment scheme.
The NPA’s investigations revealed a group of Chinese nationals paid unsuspecting individuals R200 each to provide them with their details.
The alleged fraudsters then used the details to open different bank accounts for conducting fraudulent activities.
NPA Spokesperson Lumka Mahanjana says, “The investors were lured into buying non-existent shares in sectors such as household furniture, agriculture and mining. The operation came to light when the banks alerted the National Consumer Commission about a possible scam.
“The National Consumer Commission referred the matter to the asset forfeiture unit for financial investigations. The forfeited funds will be paid into the Criminal Asset Recovery Account, ensuring that proceeds of crime are redirected to the state to strengthen the fight against organised crime,” Mahanjana explains.
