Mfundo Manci, a Durban man, received a 10-year sentence for defrauding investors of millions in a crypto scheme, and authorities seized over R4.5 million in assets.
Key Points:
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The court sentenced Mfundo Manci to 10 years in prison for fraud and other charges.
- He used a cryptocurrency investment scam to defraud clients.
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Authorities seized over R4.5 million in assets after his arrest.
A 33-year-old man from Durban, Mfundo Manci, has defrauded clients by falsely promising substantial returns on their investments, leading to a 10-year prison sentence.
Charges and Plea Agreement
The court handed down the sentence Tuesday in the Durban Specialised Commercial Crimes Court, where Manci pleaded guilty to several charges, including fraud, violations of the Banks Act, the Financial Advisory and Intermediary Services Act, and the Prevention of Organised Crime Act.
The case stems from a plea and sentence agreement involving Manci and his company, Crypto Mzansi Group (PTY) LTD. According to Natasha Ramkisson-Kara, a spokesperson for the National Prosecution Authority (NPA), Manci’s fraudulent activities took place between June 2020 and April 2021, capitalising on the growing interest in cryptocurrency investment schemes.
The Scheme and Manci’s Deceptive Actions
Manci, positioning himself as an online cryptocurrency trader, launched an investment scheme that offered both short-term and long-term promotions. He lured investors by promising them significant returns, gaining traction in the rapidly expanding market.
In a bid to widen his reach, Manci enlisted the help of two women, presenting them with what he claimed was his growing online trading business. They were led to believe that by promoting his scheme, they could earn commissions for attracting new clients. To make his operation appear legitimate, Manci registered Crypto Mzansi Group (PTY) LTD and opened several bank accounts.
Uncovering the Fraud and Manci’s Disappearance
However, unbeknownst to his accomplices and investors, Manci’s business was a sophisticated scam. Although some investors reported receiving payouts, Manci funded these payments with contributions from other investors, masking the scheme’s fraudulent nature.
Ramkisson-Kara stated that Manci never invested the funds as promised. Instead, he used the money for his own benefit, trading solely for personal gain.
As the scheme began to fall apart, Manci disappeared, leaving investors and family members in the dark. He traveled to Cape Town, cutting off all communication with those involved. His disappearance led his family to report him missing, while investors filed criminal complaints.
Assets Seized and the Final Verdict
Ramkisson-Kara also mentioned that the NPA’s Asset Forfeiture Unit (AFU) secured a preservation order to freeze Manci’s bank accounts. After depleting his funds, Manci eventually surrendered to authorities in Cape Town, and the court transferred his case to Durban.
Thanks to the AFU order, authorities recovered more than R4.5 million from Manci. The court sentenced him to 15 years in jail, with five years suspended.
