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A financial advisor at Momentum Group Limited was arrested in East London on Wednesday on allegations of fraud amounting to R4.7 million.
Hawks spokesperson Captain Yolisa Mgolodela says Shaun Dorning, 49, appeared in court on the same day and was released on bail of R10 000.
She says Dorning was appointed as an independent contractor to provide services to clients and to canvass and procure applications for policies and products for Momentum.
Mgolodela says during the course of his duties he is reported to have been appointed as a Financial Advisor for Aristopix PTY LTD, whose directors needed a payment holiday on their investments held by directors.
She says the request was granted and Dorning allegedly advised the company to amend the payment method to cash and not a debit order to suit the change of circumstances.
The company directors reportedly accepted this advice.
According to the Hawks, Dorning allegedly misrepresented the directors of Aristopix by sending emails to the financial manager of the company, pretending that the bank account number provided by him belonged to Momentum, stating that the payment of R4.2 million was paid to the insurer.
Captain Mgolodela says the alleged fraud was discovered when Aristopix issued a claim with Momentum, only to discover that payment was made to an account provided by Dorning.
She says he is facing 30 charges of fraud and will be back in the East London Magistrates Court on 7 December.
The actual prejudice including interest supposed to be accumulated during the period would have amounted to more than R4.7 million.
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