Pension fund fraudster to pay back money

A man who master-minded a massive pension scheme fraud has been ordered to pay an R18.6m fine by...

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A man who master-minded a massive pension scheme fraud has been ordered to pay an R18.6m fine by the Johannesburg Specialised Commercial Crimes Court.

Peter Ghavalas who engineered the fraud involving Alexander Forbes was given a suspended jail term.

The court said it agreed to the plea-bargain as it needed the money to re-pay pensioners who had lost their life-savings through the scheme.

The Editor of Personal Finance Bruce Cameron said huge sums were involved.

“It is actually a fraction of the money involved and the total amount it was over a billion rand with interest this goes back to the early 1990’s,” said Cameron.