FREE STATE STOKVEL FRAUDSTER SENTENCED TO EFFECTIVE 10 YEARS’ IMPRISONMENT
BLOEMFONTEIN, FREE STATE – The National Prosecuting Authority (NPA) has secured an effective 10-year direct imprisonment sentence for 31-year-old Lebohang Mokatedi, who defrauded members of a purported Christmas stokvel of R825 560 by promising groceries, meat hampers, liquor, household products and financial benefits that were never delivered.
The Bloemfontein Regional Court also sentenced his company, Lebohang Society and Financial Credit Service (Pty) Ltd, to a R1 million fine, wholly suspended for five years, on condition that it is not convicted of cyber fraud or fraud during the suspension period.
On 8 October 2026, the court convicted Mokatedi and his company on 1 407 counts involving cyber fraud, unlawfully acting as a financial services provider, conducting the business of a bank without registration, money laundering, unlawful liquor trading, tax-related offences, and reckless conduct in terms of the Companies Act.
The case arose from a scheme operated between January 2024 and January 2025, during which Mokatedi, through social media platforms and word of mouth, solicited money from members of the public by presenting his business as a legitimate financial service and stokvel operation. The scheme targeted people in Bloemfontein, Botshabelo, Soutpan, Thaba-Nchu, Hobhouse, Dewetsdorp, Excelsior and surrounding areas in the Free State.
Members were encouraged to contribute money with the expectation of receiving various benefits, including groceries, meat and liquor hampers, cleaning products, and investment returns. They entrusted their money to the scheme believing that their contributions would be used for the stated purposes and that the promised goods or financial benefits would be delivered.
However, investigations established that the business was not authorised to provide financial services, conduct the business of a bank, accept deposits from members of the public as a banking business or trade in liquor. Mokatedi misrepresented the legitimacy of the business and the benefits offered to induce members of the public to part with their money. The complainants transferred a total of R825 560, but the promised goods and benefits were not provided.
The funds were subsequently used in various financial transactions, including cash withdrawals and payments for goods, services, and living expenses. The way the funds were handled had the effect of concealing or disguising their nature, source, location, movement, or ownership, forming the basis of the money-laundering charge.
Of the 1 407 counts, 467 related to cyber fraud, 467 to unlawfully acting as a financial services provider and 467 to conducting the business of a bank without registration. The remaining charges related to money laundering, unlawful liquor trading, tax offences, and reckless conduct under the Companies Act.
During sentencing proceedings, the State, led by Advocate Tammeryn McPherson, argued that Mokatedi had exploited members of the public who entrusted him with their hard-earned money in the expectation of receiving the promised benefits.
The State submitted that the seriousness, scale, and impact of the offences warranted an appropriate sentence that would reflect the harm caused, deter similar conduct and send a clear message that financial crimes targeting members of the public will not be tolerated.
Mokatedi was sentenced to 15 years’ imprisonment on the cyber fraud counts, of which five years were suspended for five years on condition that he is not convicted of a contravention of section 8 of the Cybercrimes Act or fraud committed during the suspension period.
He was further sentenced to five years’ imprisonment for unlawfully acting as a financial services provider, five years for conducting the business of a bank without registration, seven years for money laundering, five years for unlawful liquor trading, two years for the tax-related offences and three years for reckless conduct under the Companies Act.
The court ordered that the sentences imposed on counts 468 to 1407 run concurrently with the sentence imposed on counts 1 to 467. Consequently, Mokatedi will serve an effective 10 years’ direct imprisonment.
Lebohang Society and Financial Credit Service (Pty) Ltd was sentenced to a R1 million fine, wholly suspended for five years, on condition that it is not convicted of cyber fraud or fraud during the suspension period.
The NPA welcomes the sentence as a significant outcome in the fight against fraud and other financial crimes that exploit the trust and financial vulnerability of members of the public.
Stokvels play an important role in South African communities, enabling people to save collectively, support one another and meet household needs. Members often make financial sacrifices throughout the year to ensure that they can provide for their families, particularly during the festive season. When such arrangements are abused for unlawful personal gain, the consequences extend beyond financial loss. They undermine trust and can leave families without resources they worked hard to secure.
The NPA remains committed to prosecuting fraud, money laundering and other financial crimes that undermine public confidence and threaten the financial well-being of communities. This case demonstrates that individuals and corporate entities that use purported business opportunities to deceive members of the public and unlawfully obtain their money will be held accountable.
Members of the public are urged to exercise caution before entrusting their money to individuals or businesses offering stokvel arrangements, investment opportunities or promised financial returns. They should verify that businesses offering regulated financial services are appropriately authorised and report suspected fraudulent activities to the relevant authorities.
Issued by:
Mojalefa Senokoatsane
NPA Regional Spokesperson
Free State Division