KEY POINTS
- Francois Du Preez arrested for defrauding farmer of R2.8 million. ($153,000).
- The scam involved a fake gold investment in the U.S..
- Hawks urge the public to verify financial advisors’ credentials.
A 30-year-old man from Kroonstad in the Free State was arrested on March 26, 2025, for allegedly defrauding a Koppies farmer of R2.8 million ($153,000) in a fake gold trading scheme.
The arrest was made by detectives from the Hawks following a months-long investigation into the scam.
The accused, Francois Du Preez, allegedly convinced the farmer that he was investing in a high-yield gold trading opportunity in the United States.
Du Preez, posing as a financial advisor, promised significant returns on the farmer’s investment. This led the victim to transfer money in several instalments from September to December 2023.
However, when the farmer saw no returns after several months, suspicions grew. The victim eventually reported the matter to authorities.
Lieutenant Colonel Zweli Mohobeleli, spokesperson for the Hawks, explained that the Serious Commercial Crime Investigation unit in Welkom gathered evidence. They then took the case to court.
On March 26, Du Preez was arrested on a warrant and appeared before the Heilbron Magistrates Court.
Hawks arrest suspect in fake gold investment scam
Du Preez faces serious charges, including fraud, money laundering, and violations of the Financial Advisory and Intermediary Services Act (2002).
According to IOL, he will return to court on March 28 for further proceedings.
Brigadier Paulus Mbongo, acting provincial head of the Hawks in the Free State, cautioned the public to be cautious when investing with unverified financial advisors.
He urged people to ensure that the financial entities they deal with are licensed by the Financial Sector Conduct Authority (FSCA).
Hawks urge caution in financial investments, warn of scams
Du Preez’s arrest highlights the growing issue of fraudulent financial schemes targeting unsuspecting individuals.
The public is urged to verify the legitimacy of financial advice and take precautions when making investments.
