Joburg car dealer charged for alleged R10.5m finance fraud on trade-ins
Image: 123RF/Olivier Le Moal
A Johannesburg car dealer has been arrested in connection with alleged car sale fraud amounting to more than R10m.
The Hawks, who arrested Michael Peter Griessel, 59, on Friday, said he allegedly targeted potential buyers whose loan applications had been declined by financial institutions
Capt Yolisa Mgolodela, spokesperson for the directorate, said Griessel allegedly colluded with Johannes Willem Liebenberg, the sales manager at Ronnies Motors in Mthatha.
“He reportedly ... manipulated the company systems in order to approve the declined applications by making misrepresentations that the clients had traded in some cars,” said Mgolodela.
“It is alleged that once the system approved the applications, he would not inform the clients but instead release the cars to Griessel without any money being paid to Ronnie's trust account.
“The vehicles would be sold at Griessel's dealership, and the duo would share the proceeds among themselves.”
Liebenberg was arrested in December 2020 and is out on bail. The alleged crimes were committed between April 29 2017 and June 31 2017.
“The Hawks investigation uncovered a total of 40 vehicles sold in this fashion,” said Mgolodela. “Ronnies Motors was consequently prejudiced cash to the value of more than R10.5m.”
Griessel was released on R30,000 bail. He and Liebenberg will be back in court on June 24.
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