Cryptocurrency fraudster sentenced to 10 years for R4.5 million Ponzi scheme

Mfundo Manci was sentenced at the Durban Specialised Commercial Crimes Court this week, to 10 years direct imprisonment after he pleaded guilty on behalf of himself and his company, Crypto Mzansi Group (PTY) LTD.

He had several charges of fraud, Contravention of the Banks Act, Contravention of the Financial Advisory and Intermediary Service Act, and the Prevention of Organised Crime Act that he committed between June 2020 and April 2021.

Manci, 33, was an online trader who bought cryptocurrency and at some point, he started an investment scheme, which had short-term and long-term promotions, promising high returns.

Ms Natasha Ramkisson-Kara, regional spokesperson for the National Prosecuting Authority (NPA), said Manci managed to enlist the assistance of two women who he knew, and he introduced them to the online trading business. 

“He told them that he wanted them to promote his investment business and informed them that if they referred a client for investment, they would receive a commission.

Manci then registered Crypto Mzansi Group (PTY) LTD and opened accounts with various banks. The two women (who were unaware of the scheme) recruited investors.

Manci also recruited some investors who communicated with him directly. While some investors did receive their investments with profits, they were paid with other investors’ money,  Manci was not investing the monies received and only traded for himself,” said Ms Ramkisson-Kara.

Manci then flew to Cape Town on a business trip and was unreachable to his family and the investors. This caused his family to report him missing. During this time, Manci was spending the investors’ monies, and the investors opened criminal cases against him, said Ms Ramkisson-Kara.

On August 22, 2022, the Asset Forfeiture Unit (AFU) of the NPA obtained a preservation order, freezing all Manci’s bank accounts. Realising that his funds were dried up and that his accounts were frozen, Manci handed himself over to the authorities in Cape Town and the case was then transferred to Durban. The AFU order was subsequently finalised, recovering over R4.5 million from Manci.

As part of his plea and sentence agreement, Manci was sentenced as follows: All the fraud counts were taken as one for the purposes of sentencing, and he was sentenced to 15 years imprisonment, five years of which were suspended for a period of five years on condition that he is not convicted of fraud or theft committed during the period of suspension. For Contravening the Banks Act, he was sentenced to 5 years imprisonment. This sentence is to run concurrently with the sentence imposed for fraud. For contravening the Financial Advisory and Intermediary Services Act, all the counts taken as one for purposes of sentencing, and Mr Manci was sentenced to 5 years imprisonment. This sentence will run concurrently with the sentence imposed for fraud. For contravening the Prevention of Organised Crime Act, all the counts were taken as one for purposes of sentencing and, Manci was sentenced to 10 years imprisonment. This sentence is to run concurrently with the sentence imposed for fraud. Mr Manci will effectively serve 10 years imprisonment, said Ms Ramkisson-Kara.

“Representing the state, Advocate Nhlakanipho Selwyn Mzulwini finalised the criminal matter, and the AFU applications were dealt with by Advocate Sipho Nkosi. The NPA welcomes the successful finalisation of this matter. We congratulate the prosecution and the investigating teams on a job well done, in holding the accused accountable for his actions,” said Ms Ramkisson-Kara.