Net tightens as Hawks probe scammer who conned victims out of millions

The Hawks are investigating an alleged Johannesburg con artist, who is accused of preying on young women, scamming them and their inner circles of “millions”.

Just how many millions is up for debate, but according to Chad Thomas of IRS Forensic Investigations it could be as much as R10m.

IRS is now investigating his most recent transactions involving eight family members who collectively lost just more than R5m.

The suspect denies these allegations. Instead, he claims they are a vendetta against him over a failed relationship and that due to the economy he has failed to pay back certain amounts of money — but not millions.

But IRS alleges the man used the funds to gamble, spending in the region of R400,000 each time he went to a casino — a casino outside Gauteng, as he is banned from the gambling houses in the province.

The suspected admitted to having a problem in the past and said he did not gamble any more, especially as he was banned from Gauteng casinos. 

According to Thomas, the suspect’s fraud ranges from selling non-existent vehicles to “investments” in the importation of non-existent fashion items.

“He has also taken money in other investment schemes where he promises high returns. In one case he took R300,000 from an investor and promised a return of R450,000. The suspect has sent fake proof of payments to his victims when asked for refunds and also used fabricated bank statements from Dubai claiming he has funds to pay back investors,” said Thomas.

While he was a patient at the hospital, the suspect allegedly defrauded two patients — that we know of — for R25,000 and R15,000 respectively. We have copies of the messages between himself and the patients.

—  Chad Thomas, IRS Forensic Investigations

One of his latest victims was a Johannesburg retiree. The man, like the other victims, did not want to be named as he felt ashamed at having been conned.

The pensioner said he met the suspect at the end of December 2020 at his son’s wedding. The suspect was dating his now daughter-in-law’s sister.

The pensioner had been paid out for a stolen vehicle and was looking for a second-hand Ford Everest. When this came up, the suspect claimed to be in the used car business and had found him the Everest in Gqeberha for R268,000.

The money was paid but the vehicle never arrived.

Thomas said this was called an “affinity” scam, in which the newly received investor money is used by the fraudster to make payments to earlier investors. The pensioner had given over his ID which was allegedly used to scam others in similar transactions.

The pensioner said the alleged fraudster kept making promises to deliver but there was always a problem. Eventually in February 2021, he asked for his money back.

“Then he says he is in hospital with gallstones so we’ll get the vehicle, but goes off on a tangent as to why it hasn’t happened, involving his ‘former wife’, blah, blah, blah ...

“Subsequently I got in touch with my daughter-in-law’s parents. They said he got money out of them, his girlfriend and others, including my son.

“The documents he sent were forged. I called to confront him after we discovered he had taken R5m collectively and used my ID to fraudulently take money from someone else. Almost mocking me, he said ‘you can do whatever you want’ [when threatened with legal action],” the pensioner said.

The family then went to IRS, which began the investigation.

The suspect is married. He told Sunday Times Daily that the transactions were made in good faith but that, with Covid-19 and the economy, he had fallen on bad times. He said the allegations came after he ended his relationship.

“I was involved with another woman who wanted to get married. My wife was leaving me. But we had another child coming,” he said.

Because of this, he went back to his wife.

“That’s when I started getting called a fraudster. All charges were withdrawn against me. I’ve settled it,” he said.

The suspect was talking about previous cases of fraud, some dating back to 2010. Thomas said his father had repaid these complainants who then withdrew their cases.

Thomas said that once the Hawks took over this case, the man checked himself into a mental facility.

“The Hawks contacted the suspect’s attorney to allow the suspect to come in and give his version of events. The suspect’s attorney advised that the suspect was ... in Denmar Psychiatric Hospital in Pretoria. He checked himself out on November 26, 2021.

“While he was a patient at the hospital, the suspect allegedly defrauded two patients — that we know of — for R25,000 and R15,000 respectively. We have copies of the messages between himself and the patients where he solicited the funds and the proof of transfers. He promised goods as per his normal modus operandi. One of the patients inflicted harm on himself when he found out he had been scammed.” 

The suspect said he had settled the cases with the patients at the mental health facility and that they had been withdrawn.

Thomas said: “Apparently he has entered into repayment agreements with the patients on the provision that they drop the charges [filed at Brooklyn SAPS and transferred to Garsfontein SAPS].”

Denmar Hospital said no official complaints were sent to them.

The suspect said: “They haven’t given me a figure [as to how much he allegedly owes] — nobody talks — but if you are scammed once then you won’t be dumb to do it again. After [the pensioner] paid the money I agreed to sit down and sort it out — we don’t want to go [to the] papers and make a big deal.

“I’m willing to settle everything but I’m not in a position right now — it’s to do with the currency. I would have left the country if I owed that much money [the more than R5m].”

He said he was shocked by the allegations and that he would be meeting the Hawks next week.

The Hawks told Sunday Times Daily: “We can confirm that we have that case docket. The alleged value is the subject of the ongoing investigation. The person of interest has not been charged, so we cannot confirm his identity.”

After speaking to Sunday Times Daily, the suspect consulted with his legal team. The team requested the journalist send the queries in writing so the suspect could respond in writing.

In response Zehir Omar Attorneys said: “Our client denies the allegations raised in your email. And insofar as he is being investigated, we have advised our client to exercise his right to remain silent. Our client will present his version at court if need be.”