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Six arrested for defrauding banks

Oct 07 2010 08:46 Sapa

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Johannesburg - Six people were expected to appear in court on Thursday for allegedly defrauding banks, Hawks spokesman Musa Zondi said.

"The seven people are accused of having defrauded banks by arranging for finance for cars that were either write-offs or did not exist.

"These cars were then 'sold' through the Estcourt Farmers Equipment... and once the bank had made funds available, the money was allegedly shared by the accused."

The Hawks special investigating unit made the arrests in a series of dawn raids spanning three provinces on Wednesday morning.

"The raids were carried out in KwaZulu-Natal, Mpumalanga as well as Gauteng. Those who were arrested are accused of having committed crimes in Estcourt as far back as 2004.

"All the suspects will be appearing in Estcourt Magistrate's Court on October 7," said Zondi.

One of those arrested allegedly issued roadworthy certificates without even having seen the cars.

"In total, 11 cars were financed this way but the banks never received their money back from these buyers as the details that they had been supplied in the application forms were false.

"In some cases, the details that were used belong to the original owners of the cars that had been scrapped who suddenly found themselves being threatened by banks for failing wanted the monthly instalments," said Zondi.

hawks  |  fraud


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