HAWKS arrest ringleader of a vehicle finance scam for defrauding motor vehicle institutions

A man, who is believed to be a ringleader of a syndicate that specialises in defrauding motor vehicle institutions, appeared in the Johannesburg Commercial Court yesterday, 22 July 2014, for R7, 1 Million fraud.

The Commercial Crime Unit of the Directorate for Priority Crime Investigation (the Hawks) arrested 39-year-old David Monamo while he was appearing in the Johannesburg Commercial Crime Court for a similar case of fraud on Monday, 21 July 2014.

He was appearing in court with his accomplice, 26-year-old Mahlatse Selby Mabokela, from the Alexandra Township. The duo are facing charges for defrauding a vehicle dealership in Roodepoort, Johannesburg, of more than R170 000, 00. Mabokela allegedly submitted fraudulent documents while securing finance for a Toyota Avanza, which was recovered during the investigation. Monamo allegedly prepared the documents.

Little did Monamo know that the Hawks were preparing another case of fraud against him for 43 counts amounting to R7, 1 million? These charges came after several vehicle financing institutions had approached the Hawks for assistance after their forensic investigation departments had identified a syndicate.

One Johannesburg-based bank was defrauded of R7, 1 million in fraudulent purchases of 43 Toyota Avanzas, which were recovered during a joint operation between the Hawks and the defrauded bank.

Monamo’s clients operate in the taxi industry in the Alexandra and Benoni areas. Most of them could not qualify for finance, but wanted to use these Toyota Avanzas as taxis. They would pay Monamo a small deposit of R1800, 00 for a new Toyota Avanza. Monamo has been remanded in custody until next week Tuesday, 5 August 2014, for a formal bail application.

“Owners of the Toyota Avanzas, whose purchases were facilitated by David Monamo, are strongly encouraged to contact the Hawks through its national spokesman, Captain Paul Ramaloko, at 079 514 4476/082 770 4902 to verify if their purchases are above board or not,” saidĀ  Gauteng Provincial Head of the Hawks, Shadrack Sibiya.

Investigations continue and more arrests are expected.

Buying a Vehicle, Vehicle Finance and Road Safety

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