University and college graduates, artisans and matriculants with fake qualifications will face fraud.
This was after supporters of Pule Mabe, the league's treasurer-general who was pushed out of the league in a vote of no confidence, threatened violence after it became apparent that he was in trouble with the remaining supporters of Malema.
Mabe is now seen as a Malema detractor.
Tensions at the meeting, which started on Friday at the Reef Hotel, became apparent after several proposals were tabled, including the disbandment of the organisation's national working committee (NEC).
The committee is responsible for running the day-to-day affairs of the league. According to several sources, who attended the meeting, Malema's supporters wanted to purge his perceived foes, including Mabe.
They told Sowetan that when a decision was taken that Mabe should be fired, his supporters began a heated exchange with those who voted against his expulsion.
These led to police being called to scene but Mabe left the meeting soon after they arrived.
The plan to axe Mabe started unfolding on Friday when league deputy president Ronald Lamola delivered his political report.
Lamola spoke about discipline, fingering Mabe as someone who needed to be disciplined.
Mabe was accused by other national executive committee members of being divisive and failing to pay for some of the league's activities in Limpopo.
Other leaders felt the process followed in getting rid of Mabe was unfair and insisted that he be put through a disciplinary processes if he was suspected of any wrongdoing.
The matter was put to the vote since there was a large number of people who did not agree with the decision.
Yesterday Mabe confirmed that he had been recalled after a vote of no confidence was passed by members of the NEC during a secret vote.
"I remain a disciplined member of the ANC Youth League and I will never define myself outside the organisation. I will continue to observe all due processes and respect the internal processes of the league.
"I firmly believe that the ANC Youth League remains a preparatory school of the ANC where young people should be groomed and draw experiences from.
"It should always be borne in mind that the unity of the organisation is bigger than all of us," Mabe said.
Sowetan was reliably informed that a faction sympathetic to Mabe vowed to resign in solidarity but Mabe advised them not to resign since he accepted the NEC's decision.
Mabe's expulsion is interpreted as a move to neutralise Malema's political foes ahead of the league's national general council.
The NGC is expected to elect Malema's replacement before the ANC's policy conference in June.
Sources privy to the ongoing discussion within the league said the national youth agencie's, Andile Lungisa was among those in the race to replace Malema.