Former attorney jailed 10 years for R39.8m theft and money laundering

An 82-year-old former Johannesburg attorney who was entrusted with safeguarding millions of rand has been sentenced to 10 years behind bars after a court found he stole almost R40 million from an escrow account under his control.

The ruling, handed down in the Specialised Commercial Crimes Court sitting in Palm Ridge, brings an end to a case that has highlighted the serious consequences of financial crimes committed by professionals placed in positions of trust.

Former Fluxmans Incorporated senior partner Solomon Slom was convicted on a total of 290 charges, made up of 145 counts of theft and 145 counts of money laundering. Although the court imposed two separate 10-year prison terms, they will run at the same time, meaning Slom will serve an effective sentence of 10 years’ direct imprisonment.

According to National Prosecuting Authority (NPA) spokesperson Magaboke Mohlatlole, the convictions reportedly relate to the unlawful removal of approximately R39.8 million from an escrow account that had been placed under Slom’s professional care.

‘Slom was convicted on all 290 counts, comprising 145 counts of theft and 145 counts of money laundering,’ Mohlatlole said.

The case dates back to 2018, when Fluxmans Incorporated was appointed to manage an escrow account linked to a commercial agreement between several parties.

Around R45 million had been deposited into the account and was supposed to remain there until contractual conditions were met. When a dispute later arose between the parties, the funds were required to stay untouched until the matter had been resolved.

Instead, investigators discovered that almost R39.8 million had been siphoned from the account through 145 fraudulent transactions. The court heard that the payments were redirected into a bank account over which Slom held power of attorney, despite the account having no connection to any of the parties involved in the escrow agreement.

Evidence presented during the trial showed the money was ultimately used for Slom’s personal benefit, resulting in financial losses of nearly R40 million. Senior State Advocate Pretty Mabunda successfully argued that Slom unlawfully appropriated money entrusted to him in his professional capacity before attempting to disguise the proceeds through multiple fraudulent transactions.

The court accepted the evidence and found him guilty on every count.

The NPA reportedly welcomed the outcome, saying the sentence sends a clear message that financial misconduct by professionals will not go unpunished.

‘The successful prosecution reaffirms the NPA’s commitment to combating serious commercial crime, protecting the integrity of the legal profession and ensuring that perpetrators of financial crimes face the full might of the law.’

– National Prosecuting Authority

Escrow accounts play a critical role in business transactions because they are designed to protect all parties by holding funds independently until agreed conditions have been met. Cases involving the misuse of these accounts are relatively uncommon but can severely undermine confidence in the legal profession and the broader financial system.

The conviction also comes as South African authorities continue to place greater emphasis on prosecuting complex commercial crimes, with increasing public scrutiny over fraud, corruption and the abuse of positions of trust.

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