The National Prosecuting Authority (NPA) on Friday welcomed the successful finalisation of the case against Yunus Moolla, a ponzi scheme mastermind who defrauded 3,799 investors of about R500m.
The Durban specialised commercial crimes court on Thursday sentenced Moolla to 15 years’ imprisonment after he pleaded guilty to 3,799 counts of fraud and multiple counts of contravening the Banks and Financial Advisory and Intermediary Services Act.
“Between January 2011 and February 2015, Moolla operated a ponzi scheme by promising investors he would use their investments to deal and trade in diesel and petroleum products, and provide them with a return of between 2% and 8% a month on their investments,” NPA spokesperson Natasha Kara said.
Kara said Moolla, 61, had initially pleaded not guilty. However, he changed his plea to guilty after the state led the evidence of 10 investor witnesses.
In aggravation of sentence, senior state advocate Wendy O'Brien said many investors had invested their pensions and life savings into the scheme.
She said Moolla lived the high life on the proceeds of his crime, and the liquidators had thus far been able to pay out only about 13 cents in the rand to investors.
In sentencing Moolla to 15 years, the court considered the fact that he had pleaded guilty, his age and his deteriorating health and took all the 3,799 counts as one.
“We congratulate the prosecution and the various investigating teams on a job well done, in holding the accused accountable for his actions,” Kara said.
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Ponzi mastermind gets 15 years for defrauding thousands of investors
Image: 123RF/ EVGENYI LASTOCHKIN
The National Prosecuting Authority (NPA) on Friday welcomed the successful finalisation of the case against Yunus Moolla, a ponzi scheme mastermind who defrauded 3,799 investors of about R500m.
The Durban specialised commercial crimes court on Thursday sentenced Moolla to 15 years’ imprisonment after he pleaded guilty to 3,799 counts of fraud and multiple counts of contravening the Banks and Financial Advisory and Intermediary Services Act.
“Between January 2011 and February 2015, Moolla operated a ponzi scheme by promising investors he would use their investments to deal and trade in diesel and petroleum products, and provide them with a return of between 2% and 8% a month on their investments,” NPA spokesperson Natasha Kara said.
Kara said Moolla, 61, had initially pleaded not guilty. However, he changed his plea to guilty after the state led the evidence of 10 investor witnesses.
In aggravation of sentence, senior state advocate Wendy O'Brien said many investors had invested their pensions and life savings into the scheme.
She said Moolla lived the high life on the proceeds of his crime, and the liquidators had thus far been able to pay out only about 13 cents in the rand to investors.
In sentencing Moolla to 15 years, the court considered the fact that he had pleaded guilty, his age and his deteriorating health and took all the 3,799 counts as one.
“We congratulate the prosecution and the various investigating teams on a job well done, in holding the accused accountable for his actions,” Kara said.
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