Mom of two, pathological gambler Cindy Saunders, has been sentenced to nine years in prison for defrauding two companies, one her employer, out of almost R17m to fund her addiction.
Last year Saunders, 37, pleaded guilty in Durban’s specialised commercial crime court to 45 counts of defrauding Nicholson Shipping and SK Boyz — claiming she used the money to gamble and pay gambling debts she owed to loan sharks.
She committed the crimes between 2017 and 2018. None of the money was recovered.
Saunders, who lives on the Bluff, was initially charged along with Terrence Raju and two of his companies, South Continent Logistics and Troy Trans.
After her guilty plea, the trial of her co-accused was separated, and Raju is now appearing in another court.
Saunders, who worked as an export controller, admitted she stole the money through the submission of fake invoices for the sale of containers to Nicholson Shipping by Raju’s companies.
She said he shared in the spoils.
Nicholson Shipping lost almost R11.5m and SK Boyz, who also became a victim of her crimes, R5.4m.
Handing down sentence on Tuesday, magistrate Garth Davis, said some of the counts attracted a minimum sentence of 15 years because of the amounts involved.
However, he said, there were substantial and compelling circumstances to deviate from the prescribed sentence, including evidence about her gambling addiction, her medical diagnosis as a pathological gambler and the steps she had taken since her arrest to address her issues and rehabilitate herself.
Davis said Saunders had deposed to a voluminous affidavit and handed in a report by a forensic psychiatrist. The defence had also led the evidence of the wife of her pastor and a member of Gamblers Anonymous.
He said from Saunder’s evidence it was apparent she had a “less than ideal” childhood and her better experiences were when her father “won” at the casino. The corollary of this was when he lost.
“Tellingly, she describes her few recollections of happiness when he won. Her perception of the casino was one of the few places where she was truly happy, was accompanied by the euphoria of winning.”
Her relationship with gambling was ultimately her undoing ... it reached an uncontrollable level. She became involved with people who encouraged and aggravated her problem.
— Judge Garth Davis
In spite of this, and that she had not studied further after school, she was motivated to succeed. Her relationship with Nicholson Shipping owner Mark Edwards was a good one, and she was a trusted employee. She was promoted and given a company car. He also, at her request, employed her mother.
“Her relationship with gambling was ultimately her undoing ... it reached an uncontrollable level. She became involved with people who encouraged and aggravated her problem. She began gambling away her wages and bonuses and was becoming indebted to loan sharks.
“The reality of the situation was soon that even if she won big at the casino or online, redemption was impossible due to the amounts she owed.
“The amount she stole was astronomical, she had nothing to show for it, the money was gone and the game was up. She approached Edwards and confessed.”
Davis said Saunders had detailed the roles of “hangers-on, loan sharks and various people who work at the casino”.
“Indeed the role of the gaming industry and much of what she says in this regard is somewhat disturbing. It was fairly obvious to me that loan sharks and other nefarious practices that she describes should not take place in any organisation committed to responsible gambling.”
He said he was satisfied, from the evidence, that Saunders was a pathological gambler, which was a full-blown mental disorder recognised by the courts in South Africa.
The evidence also showed she was making a “very real effort” to live a better life.
The amount of money she stole over a relatively short period of time, ranked as among the highest amounts he had ever come across, Davis said.
But he accepted she was remorseful, evidenced by her guilty plea.
After finding there were substantial and compelling circumstances to deviate from the 15-year mandated prison sentence, the magistrate said white collar crimes were very serious, and courts had been criticised for being soft on those who committed them.
He also took into account the victims — and how she had betrayed Edwards’s trust.
“I am of the view that imprisonment is inevitable and indeed a lengthy sentence, but it should be applied with an element of mercy,” he said, sentencing her to an effective nine years’ imprisonment.
He ordered that his reasons for the sentence be forwarded to the South African Responsible Gambling Foundation for their information and for them to decide if they believed any further investigation was necessary.
He also ordered that the department of social development appoint a designated social worker to ensure Saunders’s children are properly cared for while she is in jail and remain in contact with her.
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