Durban court sentences head of Ponzi scheme
The head of a Ponzi scheme, convicted of 11 000 counts of money laundering, has been slapped with a 15-year prison sentence.
Yunus Moolla was sentenced in Durban for fraud as well as breaching two acts.
Sixty-one-year-old Moolla recruited people to invest in his company, Carmol Distributors, between 2013 and 2015.
He sold it as a petrol and diesel business and promised investors a monthly profit of between 2 and 8%.
It was discovered later though that the company wasn't registered as a financial service institution.
READ: KZN company director in court for fraud
Hawks spokesperson Simphiwe Mhlongo says a case of fraud was opened and Moolla was arrested in 2016.
He was found guilty in November of 3 700 counts of fraud.
He also faced more than 7 000 counts for contravening the Financial Advisory and Intermediary Service Act that impacts the financial services industry.
Mhlonhgo says Moolla was handed a further eight years behind bars.
"It was more than 11 300 charges that he was convicted for but he will serve a 15 years imprisonment."
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