The fraudster in question, Swereen Govender was arrested in Durban.
A woman suspected of defrauding individuals out of approximately R18 million has been taken into custody by the Hawks.
According to News24, the 55-year-old suspect, Swereen Govender, was taken into custody on October 7 for allegedly evading the law since the previous year.
According to statements made by Hawks spokesperson Captain Lloyd Ramovha on Tuesday, Govender is charged with investment fraud for allegedly defrauding victims out of an estimated total of R18 million during the year 2021.
“She was discovered in the kitchen of a lodge on Mahatma Gandhi Road in Durban, at which she gave the appearance of being employed, and this led to her arrest.
“She presented no resistance once confronted and arrested by the detectives from the Durban Central police station,” Ramovha said. “Brigadier Vish Naidoo led the detectives, and they are familiar with the wanted suspect by sight.”
Govender was brought before the Durban Magistrate’s Court on the same day, where he was ordered to remain in custody.
On Wednesday, she is scheduled to make a subsequent appearance in the Palm Ridge Court.
According to Ramovha, Govender allegedly perpetrated fraud in March of the previous year by pretending to be a director of an established personal protective gear (PPE) company, even though she had no affiliation with the business.
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“It has been alleged that in order to secure financial backing for her enterprise, she deceived and enticed prospective investors by using this company. She assured investors that they would earn excellent monthly returns on their investments, but those returns never materialized.
How did Govender run her scheme before her arrest?
From the investigations, it became clear that Govender initially paid minimum dividends to investors, but then stopped doing so altogether. It is also said that she lied to her investors by telling them they could not get in touch with her because she was in a witness protection program. In reality, she had been committing fraud.
The Hawks in Germiston were given the job of looking into more about a number of cases that had been filed at different police stations in Gauteng.
The team’s further investigation showed that Govender had made up certificates from different government departments that said they were from suppliers of personal protective equipment (PPE).
Some people lost entire life savings
Since then, Govender, the fraudster, was linked to these Gauteng fraud cases, and she was a wanted person in connection with them. In some of these cases, it is said that she stole people’s life savings, pensions for retirement or disability, and other benefits, leaving them in a terrible financial situation.
Everyone should be very careful when dealing with money that belongs to other people. If a deal seems too good to be true, you should know that it most likely is.
Investment Fraud: a global phenomenon
Investment fraud is unfortunately a global problem, and South Africa has also experienced its share of investment scams over the years.
In recent years, South Africa has seen several high-profile investment fraud cases involving Ponzi schemes ran by fraudsters, where investors are promised high returns but are paid out with money from new investors, rather than from actual profits. These schemes often collapse when there are not enough new investors to sustain payouts to earlier investors, which is when the fraudsters running them vanish into thin air.
In general, investors should be wary of investment opportunities that promise high returns with little or no risk and should always do their due diligence before investing. This includes researching the company or investment opportunity thoroughly, checking the credentials of the people involved, and seeking professional advice before investing.
