A 31-year-old man who defrauded members of a purported Christmas stokvel of R825,560 by promising groceries, meat hampers, liquor and financial benefits that were never delivered has been sentenced to an effective 10 years’ direct imprisonment.
Lebohang Mokatedi was sentenced by the Bloemfontein Regional Court after being convicted alongside his company, Lebohang Society and Financial Credit Service (Pty) Ltd, on 1,407 counts involving cyber fraud, money laundering and other financial offences.
The company was sentenced to a R1 million fine, wholly suspended for five years, on condition that it is not convicted of cyber fraud or fraud during the suspension period.
National Prosecuting Authority (NPA) Regional Spokesperson Mojalefa Senokoatsane said Mokatedi and his company were convicted on October 8, 2026, following a scheme that operated between January 2024 and January 2025.
How the stokvel scheme operated
According to the NPA, Mokatedi used social media platforms and word of mouth to solicit money from members of the public by presenting his business as a legitimate financial service and stokvel operation.
The scheme targeted people in Bloemfontein, Botshabelo, Soutpan, Thaba-Nchu, Hobhouse, Dewetsdorp, Excelsior and surrounding areas in the Free State.
Members were encouraged to contribute money in exchange for promised benefits, including groceries, meat and liquor hampers, cleaning products and investment returns.
However, investigations established that the business was not authorised to provide financial services, conduct banking business or trade in liquor.
The NPA said Mokatedi misrepresented the legitimacy of the business and the benefits on offer to persuade people to hand over their money.
The complainants transferred a total of R825,560, but the promised goods and financial benefits were never delivered.
The funds were subsequently used for various transactions, including cash withdrawals and payments for goods, services and living expenses. The handling of the money formed the basis of the money-laundering charges.
More than 1,400 counts
The 1,407 counts included 467 counts of cyber fraud, 467 counts of unlawfully acting as a financial services provider and 467 counts of conducting the business of a bank without registration.
The remaining charges related to money laundering, unlawful liquor trading, tax offences and reckless conduct in terms of the Companies Act.
During sentencing proceedings, the State, led by Advocate Tammeryn McPherson, argued that Mokatedi had exploited members of the public who entrusted him with their hard-earned money in the expectation of receiving the promised benefits.
The State submitted that the seriousness, scale and impact of the offences warranted a sentence that reflected the harm caused, deterred similar crimes and sent a clear message that financial crimes targeting the public would not be tolerated.
Court imposes effective 10-year sentence
Mokatedi was sentenced to 15 years’ imprisonment on the cyber fraud counts, with five years suspended for five years on condition that he is not convicted of a contravention of section 8 of the Cybercrimes Act or fraud committed during the suspension period.
He was also sentenced to five years’ imprisonment for unlawfully acting as a financial services provider, five years for conducting the business of a bank without registration, seven years for money laundering, five years for unlawful liquor trading, two years for the tax-related offences and three years for reckless conduct under the Companies Act.
The court ordered that the sentences imposed on counts 468 to 1,407 run concurrently with the sentence imposed on counts 1 to 467.
As a result, Mokatedi will serve an effective 10 years in prison.
His company received a R1 million fine, wholly suspended for five years, subject to the condition that it is not convicted of cyber fraud or fraud during that period.
NPA warns public against stokvel scams
The NPA welcomed the sentence, describing it as a significant outcome in the fight against fraud and other financial crimes targeting members of the public.
It said stokvels played an important role in South African communities by allowing people to save collectively, support one another and meet household needs.
Members often make financial sacrifices throughout the year to provide for their families, particularly during the festive season.
The NPA said the abuse of such arrangements for unlawful personal gain went beyond financial losses, undermining trust and leaving families without resources they had worked hard to secure.
“The NPA remains committed to prosecuting fraud, money laundering and other financial crimes that undermine public confidence and threaten the financial well-being of communities,” the authority said.
“This case demonstrates that individuals and corporate entities that use purported business opportunities to deceive members of the public and unlawfully obtain their money will be held accountable.”
The authority urged members of the public to exercise caution before entrusting money to individuals or businesses offering stokvel arrangements, investment opportunities or promised financial returns.
sinenhlanhla.masilela@iol.co.za
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