A Cape Town lawyer has been disbarred after she allegedly defrauded clients and misappropriated funds to the amount of R6.6 million.
Zeenat Mohamed has been granted R50 000 bail after making an appearance at the Wynberg Magistrate’s Court.
The National Prosecuting Authority (NPA) stated her case was transferred to the Bellville Specialised Commercial Court this week which is set to continue in May.
The State is set to prove that under her practice’s name, Zeenat Mohamed Attorneys, which also dealt with conveyancing, had misappropriation of trust funds of more than R6.6m which was intended to two immovable properties transactions between May 2020 and August 2021.
She was struck off the roll on March 15.
NPA spokesperson Eric Ntabazalila said Mohamed is believed to have cancelled a bond of a property in Crawford.
She is charged with two counts of fraud, forgery, uttering and two counts of money laundering.
“Mukaddam Ahmed Kagee Attorneys (MAK Attorneys) is registered on the panel of attorneys for banking institutions that attend to mortgage loans and cancellations on behalf of bank institutions at the Deeds Office in Cape Town.,” explained Ntabazalila.
“The State alleges that on July 21, 2020, MAK Attorneys received a request from the accused to cancel a mortgage bond held over an immovable property on Rokeby Road, Crawford.
“The request for the bond cancellation was an agreement of sale between a seller and a purchaser for the property and the purchase price was R4.3m which included R2.5m for the property, and R1.8m for the movable assets of the property.
“On ugust 21, 2020, Mohamed forwarded an Attorney Letter of Undertaking to MAK Attorneys which served as security for payment of the bond cancellation to cover and settle the outstanding amount due on the bond, which was R 4.38m.
“Three days later, MAK Attorneys issued a Letter of Undertaking to the bank taking responsibility to pay the bank the due amount owing to the bond as of the date of registration.”
Ntabazalila said Mohamed had enriched herself by allowing the funds of the bond to be transferred into her personal account:
“The amount to settle the bond was to be paid from the funds received by the accused into her trust account on registration. An acknowledgement of debt was signed between the accused and MAK Attorneys and mandated payment to be made to MAK Attorneys' bank account.
“On December 1, 2020, the accused sent proof of payment of R4.38m to MAK Attorneys, and on receipt of the proof of payment from the accused, the law firm cancelled the mortgage bond over the immovable property and proceeded to register (it) at the Deeds Office.
“MAK Attorneys never received the funds.
“Investigations revealed that the legal practitioner and conveyancing attorney transferred the R4.38m into one of the 11 bank accounts she managed and controlled which were in her legal practice’s name and a personal capacity as well as bank accounts not in her name to perform inter-account electronic transfers to move monies to conceal and disguise the true nature or source of income.
“The proof of payment reflecting payment was fabricated and false.”
He explained MAK Attorneys were not Mohamed’s only victims in her two months’ spree of fraud activities.
“On November 10, 2020, a potential property owner deposited R2m and R100 000 transfer fees into the accused’s bank account for a R2.25m property in Rondebosch,” he said.
Ntabazalila added that she had allegedly requested the purchaser to deposit that amount into her bank account and that on February 12, 2021, the purchaser cancelled the deal and requested total repayment of his money due to the failure of Mohammed to register the property in his name and the accused was unable to do so as the money was not held in her trust account.
“The State alleges that the accused informed the complainant, following requests, that she misappropriated the funds held in trust. The fidelity fund has only paid out the R2.25m,” he added
He explained that the State will argue during the trial that she was cunning in that she created a false proof of payment which induced MAK attorneys to cancel the bond, which held them liable for R4.3m when the property came up at the Deeds Office to be registered.
“She was in a position of trust as a legal practitioner and abused this position, especially her long-standing professional relationship with MAK Attorneys. The misappropriation of the monies totals an amount of R6.6m over two months,” he added.
“As a result of allegations against her, in March 2021, the Legal Practice Council (LPC), brought an urgent suspension application against her for alleged misappropriation of trust monies.
“On March 15, 2023, she was struck from the Roll of Attorneys and Conveyancers of the High Court. Mohamed will make (her) first appearance at the Bellville Specialised Commercial Crimes Court on May 23, 2023.”
The Directorate of Priority Crime Investigation’s Zinzi Hani said Mohamed had been arrested at her home and was released on strict bail conditions.