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A Westville businessman accused of fleecing investors out of more than R13 million is engaged in “plea negotiations” with the State.
Soobramoney Moodley, 59, appeared briefly in the Durban Commercial Crime Court on Thursday on 26 charges of fraud. He was arrested in December 2011.
According to the charge sheet, Moodley promised investors good returns and that their funds would be invested on the stock market.
The State alleges that about 26 investors provided R13.4m over four years.
It says some investors received dividends, but nine did not receive any.
Moodley told the investors to transfer money into his bank account and that he would invest it on their behalf. However, he allegedly did not invest any of the money and put it to personal use.
Prosecutor V Mgobhozi told the court that negotiations around a plea bargain agreement were at an advanced stage.
“We are finalising the matter in terms of a plea and sentence agreement.
“Due to the magnitude of the matter, I need to go back to the complainants to discuss what is going to happen with the case.”
One of the investors, from Durban North, who asked not to be named because he did not want his loss to be made public, said that an acquaintance had recommended that he invest money with Moodley.
“My capital, which was a substantial amount, was guaranteed and (I was told) I would get a return of two percent of my investment every month.
“I thought it was legitimate, because there was proper paperwork and I was paid for about 20 months.”
The man said he realised there were problems with the business after he asked to withdraw some of his capital.
“He started dodging me and would not take my calls. I could not get a straight answer about when I would get my money and then the monthly dividends stopped as well.”
Another investor, who also declined to be named, said she had invested about R500 000.
“I invested money in 2007 and I got my monthly payouts every month, so I thought the business was quite successful as other investors were also receiving payments.
“In April last year, I stopped receiving my returns and I questioned it.
“But I was reassured that the money had been invested in overseas products and there were delays.”
The woman said she was shocked when police told her that Moodley had been arrested.
“I was completely taken aback because I had believed that the business was legitimate. I put my whole life savings into this. I do not know whether I will get anything back.”
The case was adjourned to next week and Moodley is out on bail. – The Mercury
