A 53-year-old Eastern Cape businessman has been found guilty of taking money from investors for a housing project that never materialised, and using it for his personal gain.
Gregory Gavin Ferguson was convicted this week in the Gqeberha Specialised Commercial Crimes on charges of fraud.
Explaining the charges the Directorate for Priority Investigations (Hawks) in the Eastern Cape, Warrant Officer Ndiphiwe Mhlakuvana, said during the period between August 2005 and February 2011, Ferguson was a company co-director of Cob Creek Estate Pty Ltd.
“The reports divulged that the company was established for the purpose of developing a residential Golf Estate in Kabeljous River, Jeffrey’s Bay.”
Mhlakuvana said investigations revealed that not only was Ferguson the only signatory on the company’s bank account, moreover he was the person that had access to the bank account via internet banking.
“Investigations revealed that Ferguson intentionally without the knowledge of his two co-directors reportedly persuaded investors to invest into the development which never materialised.”
Ferguson intentionally used the monies for his personal gain.
The Hawks said Ferguson’s fraud was brought to light by auditors and the matter referred to them.
“The investigation revealed that investors was actually prejudiced an amount of over R4.4 million.”
On December 20, 2016, Ferguson was arrested by the Hawks and released on a warning the same day.
He is expected to be sentenced in January.
IOL News