A local actress was among those who bought into a bogus investment scheme. This week Martin Smuts was sentenced for defrauding victims to the tune of approximately R6-million.
"Smuts was convicted to 10 years‚ suspended for 5 years on condition that he repay R2.5 million of which R1 million deposit is today‚ failure of which will mean effective jail term with immediate effect‚" said Hawks spokesman Captain Lloyd Ramovha in a statement on Friday.
It has emerged that the 48-year-old would convince people that he represented Russellstone EDI‚ which is a JSE-listed entity‚ and managed to persuade people to part with millions of rands. The money would be deposited into an investment portfolio account he had with the company and then he diverted it into his personal account.
Smuts paid victims interest on their savings using their own money.
"Funds eventually dried up‚ and there were no more monthly payments being made which resulted in complaints being laid by about 8 of his victims which included a well-known South African television actress‚'' said Ramovha.
The Hawks swooped on him on November 7 2014‚ and he was found guilty of 24 counts of fraud‚ contraventions of sections of the Banks Act and Financial Advisory and Intermediary Services Act on Monday in the Bellville Commercial Crimes Court.
According to Ramovha‚ Russellstone EDI "co-operated fully with Hawks investigations‚ as they were unaware that Smuts had asked private persons to make deposits into his investment account."
Just R20 for the first month. Support independent journalism by subscribing to our digital news package. 
