An illicit funeral home operating in the Western Cape has been slapped with a penalty by the Oudtshoorn Regional Court for conducting business without proper documentation.
As reported by IOL, Jacob Veldman (40), who ran Alpha Star Funeral Services, has been found guilty of engaging as a financial service provider without the necessary licence and deceiving local community members, particularly those who are poor and underprivileged.
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The spokesperson for the Directorate for Priority Crime Investigation in the province, Zinzi Hani, revealed that Alpha Star Funeral Services failed to disburse a policy benefit of R10 000 to a grieving family, despite the fact that the policy premiums had been duly paid.
The family reportedly ended up utilising the services of an alternate funeral parlour for the burial, which was covered by a secondary policy.
Hani stated that the company was convicted of violating Section 7(1) of the Financial Advisory Intermediary Act 37 of 2002.
‘His entity was subsequently given a R50 000 fine or five years imprisonment suspended for five years on condition that Alpha Star Funeral Services pays R10 000 to the victim before September 15, 2023,’ Hani said.
Major General Mathipa Makgato, who heads the Hawks division in the Western Cape, commended the team for their diligent efforts in ensuring that justice was appropriately administered.
Makgato advised the public to exercise heightened caution when engaging with financial advisors and institutions to prevent falling victim to similar fraudulent practices.
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