BETHLEHEM, Free State — A 41-year-old man, Caleb Ntuli, was sentenced to seven years in prison for his role in running a Ponzi scheme through his investment business, Tshwaranang Stokvel, the Bethlehem Commercial Crimes Court ruled on Thursday.
Ntuli was convicted of fraud and money laundering after his investment scheme, which promised a 50% return within 30 days, defrauded over 250 victims between 2016 and 2019. Investors, enticed by the false promises of rapid financial growth, lost a cumulative amount of R8 million.
The court also imposed fines on Tshwaranang Stokvel: a R1 million fine for fraud, and a R700,000 fine for money laundering, both suspended for five years.
The investigation, led by the Hawks Directorate for Priority Crime Investigation (DPCI), revealed that Ntuli had gone into hiding after the victims failed to receive their promised returns. He was eventually tracked down and arrested in Palm Ridge, Gauteng, on September 17, 2022.
Lieutenant Colonel Zweli Mohobeleli, a spokesperson for the Free State Hawks, explained that the Serious Commercial Crime Investigation team had worked diligently to uncover the operation. “The investigation team in Bethlehem worked tirelessly to locate Ntuli, who had gone underground as the victims’ frustrations grew,” Mohobeleli stated.
The head of the Hawks in the Free State, Major General Mokgadi Bokaba, praised the team for their dedication in solving the case and cautioned the public against falling prey to get-rich-quick schemes. She emphasized, “Promises of high returns on investment are often too good to be true, and individuals must be cautious when considering such offers.”
Ntuli’s sentencing marks a significant victory in the ongoing fight against financial crime in South Africa, and the case serves as a warning about the dangers of fraudulent investment schemes.
