Former bank employee gets 15 years for defrauding German national

A man will spend a maximum of 15 years in prison after his conviction for defrauding a German national of R6.4 million.

Mzwakhe Khumalo was found guilty of fraud, money laundering and contravention of the Electronic Communications and Transactions Act (ECTA).

The Gqeberha Specialised Commercial Crime Court sentenced the 33-year-old on 13 August, handing down concurrent sentences of 15 years, six years and 12 months for each crime, respectively.

Impersonation and forgery

Khumalo was employed as a credit validation consultant at FNB and was accused of manipulating the accounts of a German national between December 2017 and February 2018.

He was found guilty of working with an accomplice and fellow FNB employee, 33-year-old Lwando Dingiswayo, who was convicted separately.

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The foreign victim had a South African resident managing his affairs, but in December 2017 Dingiswayo altered the account holder’s contact details, allowing activity on the account to go unnoticed.

The victim’s signatory authority was cancelled in January 2018 and, used forged passports, reassigned this authority to a fabricated name “John Anthony Mackay”.

Using the name of Mackay, the fraudsters made two successful transfers of R4.8 million and R1.6 million.

“R400 000 had already been withdrawn in cash before a hold was placed on the remaining funds,” stated Eastern Cape NPA spokesperson Luxolo Tyali, explaining the transactions were quickly flagged as suspicious.

Tough stance on fraud

Khumalo denied two of the three charges, while prosecution urged the importance of addressing the severity of the crime.

“The court agreed, stating that Khumalo’s actions showed a clear disregard for the law and highlighted the need for consequences,” stated Tyali.

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Despite the recovery of R6 million of the defrauded funds, the hefty sentence was handed down.

“The NPA is committed to fighting financial crimes and protecting the economy,” said Eastern Cape Director of Public Prosecutions Barry Madolo.

“This case demonstrates our resolve to hold individuals accountable for their actions and ensures that they face the full might of the law.”