A financial planner apprehended late last year for defrauding a fleet management services company of R4.7 million has been found guilty on 30 counts of insurance fraud.
Shaun Dorning, a former financial planner in the employ of the Momentum Group, was convicted by the East London Regional Court on 31 January.
Dorning was arrested on 29 November last year by the East London Serious Commercial Crime Investigation team, in collaboration with Priority Crime Specialised Investigation of the Hawks and the National Prosecuting Authority.
While working as an independent contractor, the financial planner redirected payments intended for Momentum from his client, Aristopix, located in East London.
In 2020, Aristopix’s directors contacted Dorning, requesting a payment holiday on investments held with Momentum. This was granted, but Dorning advised the directors to change the payment method to cash (EFT) in future. Then, posing as the directors, he provided the company’s financial manager a fake Momentum bank account for payments.
The fraud came to light when Aristopix lodged a claim with Momentum. At that point, R4.2m had already been deposited into the fake bank account. The actual prejudice, including interest that would have accumulated during the period, was more than R4.7m, said Captain Yolisa Mgolodela, the provincial spokesperson for the Hawks.
At the time of the arrest, Momentum stated that a client query prompted the investigation, leading to Dorning’s debarment and subsequent arrest.
Momentum also confirmed that a second client had been allegedly defrauded by Dorning.
Read: Former Momentum financial planner arrested for R4.7 million fraud
Dorning is scheduled to be sentenced on 10 April.
you will eventually be caught out. !!!!!
Well, how old must you be to understand that what goes up, must come down….that what you sow is what you reap. This kind of consequenses and shame has built into it the grand possibility to change and get your principles sorted out. Time to change, Bro.
I think you must now leave your money under the bed,because you don’t know which finacial advisor can you trust.Your money is even not safe in the bank
I have been trying for years to get my pension from Barclays/Then FNB which I eventually discovered had been paid to Momentum. Pension was paid into a Bank account under my name, my address but different identity no. Have been to the Bank countless times but still waiting.