The African National Congress is starting its “dispute resolution process” in a bid to address the a.
He drove a luxury car, owned offices in an upmarket suburb and took his "clients" to the Sheraton Hotel for workshops.
He told people that his company, Colly-J Business Boost, specialised in getting funds for "disadvantaged" people who wanted to start, or improve, a business.
He named businessmen Cyril Ramaphosa and Patrice Motsepe as his local funders.
People invested big money, between R40000 and R80000, in his company.
But Jacob Mogakala, 39, was nothing but a smooth talker.
"When I saw his advertisement in the newspaper I was convinced his business was for real. The ad said he offered special funding for black people," said Nick Modise, 53, a businessman from Thokoza.
"I called his office and made an appointment. He explained how his business worked and asked for a membership fee of R3400.
"Then he said I needed R43 500 towards raising a loan of R750 000. I paid it into his account in August."
Modise said he became suspicious when Mogakala failed to give him the loan.
"I reported him to the police," said Modise.
Mogakala was arrested and charged with seven counts of fraud. Yesterday he was sentenced to seven years in jail.
He had defrauded his victims of R200000.