JOHANNESBURG, South Africa — Two people believed to be members of a syndicate which allegedly defrauded Diners Club of about 1 million rand (U.S. $150,950) through multiple ATM withdrawals in London, were arrested on Feb. 26 by Scorpions investigators, according to a report in The Mercury.
Craig Ragavaloo, 28, of Johannesburg, and Dinesh Kallichurran, 47, of Stanger Manor, appeared before a magistrate on Feb. 26. They were both released on bail and will appear in court again on May 4.
Both have been charged with 120 counts of fraud. According to the charge sheet, the men were involved in 120 illegal withdrawals using Diners Club cards and PINs.
Between Feb. 5 and 8, 2000, the pair were allegedly withdrew 272,000 rand in 79 transactions at ATMs in London using the card and PIN of Diners Club cardholder Vinay Boni Singh.
Later that year, 35,800 rand (U.S. $5,406) was withdrawn in 33 transactions using the card and PIN of Ramesh Singh and 9,445 rand (U.S. $1,426) was withdrawn in seven transactions using the card and PIN of Collen Matshitse. All three cardholders initially denied any knowledge of the transactions, but subsequently repaid the money.
According to the Mercury, the case has links to a civil trial held last year in which Stanger businessman Anil Singh took Diners Club to court, claiming that 600,000 rand (U.S. $90,600)had been withdrawn from his account without his knowledge.
The money was withdrawn from ATMs in London over a single weekend in August 2000.
Singh claimed that Diners Club's financial systems were lax and that somebody had managed to access his account without his knowledge. But Diners Club denied this, saying Singh must have shared his card and PIN.
Singh lost his case, after Judge Philip Levinsohn found it was highly probable that he had given his card to members of a syndicate intent on defrauding Diners Club. The bank is now attempting to recover the 600,000 rand plus millions in legal costs from Singh.
(See related stories S. African judge rules against businessman in PIN security case and Evidence suppressed in S. African case; Diner's Club alleges businessman part of ATM scam)
In total, Diners Club says six cards were used under suspicious circumstances in London and a total of 1 million rand was withdrawn.
More arrests are expected in connection with the matter, according to the Mercury.
