In a major case of corporate fraud, Durban accountant Amanda Lowton has been sentenced to 10 years in prison following her conviction on charges of fraud and money laundering.
The sentencing took place in the Durban Specialised Commercial Crime Court on Thursday, where Lowton, 52, accepted a plea and sentence agreement. Her conviction came after a detailed investigation led by South Africa’s Directorate for Priority Crime Investigation, commonly known as the Hawks.
Details of the Charges and Investigation
Lowton faced 105 counts of fraud and money laundering related to activities stretching back to 2012. Captain Simphiwe Mhlongo, spokesperson for the Hawks in KwaZulu-Natal, detailed how Lowton carried out these crimes over several years while employed as an accountant at a KwaZulu-Natal company.
Her fraudulent activities included creating fictitious payments to non-existent suppliers and directing funds to personal accounts rather than company-approved beneficiaries. According to Mhlongo, Lowton also collaborated with her husband, Mark Lowton, 57, who contributed to the scheme by submitting fake invoices to her company.
One such payment, amounting to R1.8 million, was deposited directly into her husband’s business account, with Lowton and her colleague, Daryl Spencer, 60, approving the transaction. This fraud significantly impacted the company’s finances.
Discovery of the Fraudulent Payments and Investigation
The fraudulent activities remained undiscovered until 2017 when Lowton resigned, and her replacement uncovered discrepancies in financial transactions. Upon investigation, the new accountant noticed irregular payments purportedly directed to the South African Revenue Service (SARS) that were not linked to an official SARS bank account.
A subsequent internal investigation revealed the staggering extent of Lowton’s fraudulent dealings. The Hawks uncovered that fraudulent payments totaling R122,269,041.98 were directed to four separate bank accounts owned by Mark Lowton. While some of the funds were transferred to legitimate company suppliers, an astonishing R47,545,616.28 was retained within these accounts. This revelation prompted the company to report further cases of fraud and money laundering to the Pinetown police station, launching an extensive investigation by the Hawks.
Arrests and Legal Proceedings
In April 2021, Amanda Lowton, her husband Mark, and Daryl Spencer were all arrested as part of the Hawks’ crackdown on the fraudulent scheme. All three initially appeared in court and were granted bail. However, Spencer later failed to appear at a court hearing, leading to the issuance of a warrant for his arrest.
Meanwhile, Amanda Lowton chose to cooperate with the authorities and entered a plea agreement with the State. This agreement led to the withdrawal of the charges against her husband, Mark, allowing the case against him to be dropped. As part of her plea deal, Lowton pleaded guilty, resulting in her eventual sentencing.
Sentencing and Conditions
On Thursday, the court sentenced Lowton to 15 years for fraud, with five years suspended on the condition that she avoids any convictions related to fraud or theft within that period. For her charges of money laundering, she received an additional seven years. Since the sentences are set to run concurrently, Lowton will effectively serve a total of 10 years in direct imprisonment.
Major General Lesetja Senona, the head of the KwaZulu-Natal Directorate for Priority Crime Investigation, expressed satisfaction with the court’s decision. He praised both the investigative team and the prosecution for their meticulous work in bringing Lowton to justice. According to Senona, the sentence reflects the commitment of law enforcement to curbing economic crimes that have damaging consequences for companies and communities.
The Impact of the Fraud Case
This case underscores the significant financial risks posed by internal fraud. Lowton’s scheme was able to continue unchecked for five years, highlighting potential gaps in financial oversight and internal controls. The company suffered major financial losses due to the fraudulent activities, with R122 million misappropriated during her tenure as an accountant.
As a result of the conviction, this case has drawn attention to the importance of regular audits and internal checks to detect discrepancies early. For companies across South Africa, the case serves as a reminder to ensure strict compliance with accounting practices and to strengthen anti-fraud measures within their financial departments.
Moving Forward
Amanda Lowton’s conviction and sentencing mark a win for the South African justice system in its efforts to combat white-collar crime. The Hawks’ success in investigating and prosecuting this case illustrates the effectiveness of inter-agency collaboration when tackling complex fraud schemes. This case has also sparked conversations around the need for stricter policies and protocols within corporate environments to prevent similar incidents in the future.
As Lowton begins her 10-year sentence, authorities continue their efforts to locate Daryl Spencer and ensure all involved parties are held accountable. For South African businesses, this case serves as a sobering reminder of the importance of financial vigilance and the need to protect themselves from potential internal threats.
