Former Momentum financial planner arrested for R4.7 million fraud

A financial planner recently apprehended for allegedly defrauding Aristopix, a fleet management services company based in East London, of R4.7 million seems to have caught a second client in his web of deceit.

Momentum Group Limited has confirmed that a second individual client was allegedly defrauded by Shaun Dorning (pictured), a financial planner formerly in the employ of the group.

Momentum said the group has fully restored the financial position of the two affected clients.

“Having considered the merits of the matter and the outcome to our internal investigation, the policies/investments were reinstated to the same position they would have been in, if not for the conduct of Mr Dorning. This means that all premiums and investment gains that would’ve accrued were calculated and reinstated to the policies,” Momentum told Moonstone this week.

On 29 November, the East London Serious Commercial Crime Investigation team of the Hawks, in conjunction with Priority Crime Specialised Investigation of the Hawks and the National Prosecuting Authority, arrested Dorning on 30 counts of fraud.

It’s claimed that the financial planner working for Aristopix allegedly intercepted payments intended for Momentum while serving as an independent contractor appointed by the financial group to handle policy and product applications.

According to Eastern Cape Hawks spokesperson Captain Yolisa Mgolodela, Aristopix directors contacted Dorning in 2020, requesting a payment holiday on investments held with Momentum.

“This was reportedly granted, and Dorning is said to have advised the company to amend the payment method to be cash (EFT), not [a] debit order, to suit the changes of the circumstances. The company directors reportedly accepted the advice,” said Mgolodela.

Next, Dorning, allegedly posing as Aristopix directors, emailed the company’s financial manager a fake Momentum bank account, asking for payments to be made directly into the account.

The alleged fraud only 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, amounted to more than R4.7m, Mgolodela said.

In a statement released in response to Dorning’s arrest, Momentum said although the financial group had strict risk mitigation protocols in place, it was a query from the client that prompted the investigation.

“When we, following an internal investigation, discovered that Shaun Dorning was committing fraud, we notified the Financial Sector Conduct Authority, and Mr Dorning was subsequently debarred as a financial adviser.

“We then engaged the Directorate for Priority Crimes Investigations, which led to their investigation and the arrest of Mr Dorning,” said Momentum.

The group urged clients to check their policy statements regularly, including contact details on file, and never to make EFT payments to bank accounts without first verifying that the nominated bank account is in the name of the correct FSP.

Dorning appeared in the East London Magistrate’s Court on the same day as his arrest and is out on bail of R10 000. His next court appearance was scheduled for today (7 December).