JACOB Veldman (40) and his company, Alpha Star Funeral Services, were dragged to the Oudtshoorn Regional Court in the Western Cape for operating without a licence.
The incident happened after they failed to provide a R10 000 policy benefit to the family that lost their loved one.
Hawks spokeswoman Zinzi Hani said the Hawks investigated the matter leading to the prosecution of Veldman and his company.
“The accused acted as a financial service provider without having a license, misleading members of the public, especially the poor in the local community. Alpha Star Funeral Services did not pay the R10 000 policy benefit to the family, although the policy was paid up.
"However, the funeral service was rendered by another funeral parlour which was covered by a secondary policy,” said Hani.
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She said that investigations revealed that the company was found guilty of contravening Section 7(1) of the Financial Advisory Intermediary Act 37 of 2002.
The court fined the entity for 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 15 September 2023.
Hawks provincial head of the Western Cape, Major-General Mathipa Makgato, praised the cops and urged communities to be extra vigilant.
