Financial adviser arrested for stealing from clients

A suspect has been arrested for fraud and money laundering worth R23m in the Western Cape after he voluntarily admitted to his employer that he misappropriated funds from 18 Old Mutual clients.

The Hawks said the suspect worked as a financial adviser for Alchemy Financial Services, which is an Old Mutual agency franchise. He was arrested on Thursday, spokesperson warrant officer Zinzi Hani said.

“These clients believed they had made payments to an Old Mutual investment account but these were made to a Standard Bank account of which the suspect was the sole signatory,” said Hani.

“It is alleged the suspect created fictitious invoices reflecting Old Mutual branding, giving investors the impression that their investment growth is in good standing.”

Instead their money was “utilised by the suspect for his own personal gain and/or diverted to various other accounts in which the suspect had an interest”.

TimesLIVE