10-year straf for scam

A former financial advisor at insurance company Sanlam was sentenced to 10 years, suspended for five, after he defrauded over 32 clients of their savings amounting to over R650 000.

Directorate for Priority Crime Investigation (Hawks) spokesperson, Captain Philani Nkwalase, said 51-year-old Francois Martinus Labuschagne was convicted and sentenced in the Bellville Commercial Crime Court on Monday for multiple charges of fraud.

Captain Nkwalase said Labuschagne was arrested in Louis Trichardt in January 2017 by members of the local detective branch, in collaboration with the Western Cape Hawks following a six-year investigation into fraudulent activities at the Ceres Sanlam branch between August 2007 and January 2010.

“Labuschagne deceitfully convinced his clients to withdraw a portion or full benefit from their investment portfolio. Thereafter he claimed that he would reinvest it on their behalf with guaranteed higher returns but instead used the money for self-gain,” said Nkwalase.

He said that Labuschagne had been on the run before he was captured in Limpopo.

His case was subsequently transferred to the Commercial Crime Court in Bellville, where he made several appearances.

The court has ordered Labuschagne to repay over half a million rand from his pension and the rest of the misappropriated funds through instalments.

“The 10-year sentence imposed on Labuschagne is suspended for a period of five years on condition that the accused is not found guilty of similar offences,” Nkwalase added.

A further sentence of 36 months under correctional supervision was handed down and he will have to undergo rehabilitation.