The Financial Sector Conduct Authority (FSCA) says it welcomes the seven-year prison sentence handed down last week to Gerrit Abraham Coetzee, for defrauding his financial services clients.
Coetzee was a key individual and partner at Vryburg Financial Services. He pleaded guilty to 58 counts of fraud and 58 counts of concealing the nature, source, location and movement of more than R12 million.
The sentencing came after an extensive joint investigation by the FSCA, the Commercial Crime Unit of the South African Police Services, and the Serious Commercial Crime Investigation Unit of the National Prosecuting Authority.
The investigation, which resulted in Coetzee being disbarred as a financial services provider, revealed that Coetzee had induced clients to deposit money into his personal trading accounts and into his personal investment account. The misappropriated funds were used to pay home loans, personal loans, insurance and vehicle financing.
Coetzee was sentenced to 10 years’ imprisonment, of which three were suspended, subject to the following:
- He pays an amount of R20 000 a month for six years towards a fund to compensate the complainants;
- He cedes an annuity in his favour (at least R1.2 million), payable in 2024, to the compensation fund;
- He obtains and maintains a policy on his life to the value of at least R2 million, for the benefit of the victims in the event of his death.
PERSONAL FINANCE